US Steel’s decision to spend $1.2 billion on its Mon Valley Works ensures that the company remains relevant for the long-term, according to ceo David Burritt.
On the company’s first-quarter conference call, Burritt highlighted the advantages of a new thin-slab caster at its Edgar Thomson mill in Braddock, Pennsylvania, and a cogeneration plant at its Clairton, Pennsylvania, coke works.
“We expect to achieve a $35/short ton reduction in operating costs,” he says. “We're creating new product boundaries that create a moat around the most attractive markets we serve, gauging with combinations not available today in the United States. And we expect to deliver significant environmental improvements.”
Burritt adds that the $35/st expected reduction is on top of the mill’s extant position as a low-cost producer, Kallanish notes.
“This investment is truly transformative. Again, here's the proof. The Mon Valley is currently a low-cost mill in the steel industry and we're now combining the best of both our high-quality integrated steelmaking process with industry-leading casting technology,” he says. “To be clear, we are not adding steelmaking capacity. Instead, we are transforming our footprint to capture market share. I've never been more confident in our future than I am right now.”