US Steel considering Eastern Europe acquisitions
The US's largest steel producer
US Steel is looking to increase its presence in Eastern
Europe through acquisitions of mines and steel mills to ensure raw materials supply.
CEO of
US Steel John Surma stated that the company is interested in adding to its recent acquisitions in
Slovakia and
Serbia.
US Steel is the only significant American
steelmaker with a presence in
Europe.
Surma announced that
US Steel is considering steel mills in
Croatia,
Ukraine,
Romania and
Bulgaria as potential sites for acquisitions, in addition to European mines for either
iron ore or
coking coal to reduce its dependence on outside sources.
US Steel controls its own US
iron ore supplies through its ownership of
iron ore mines in Minnesota, but buys
iron ore for its eastern European mills from groups based in
Russia and
Ukraine.
According to market sources,
US Steel is forecasted to produce 22.5 million tons of steel this year, making it the world's sixth largest steel producer. Of the company's total
production, 15 million tons are produced in the US with the rest produced at its two facilities in eastern
Europe.
Surma also stated that the company is also considering other opportunities to buy smaller steelmakers in
North America with the goal to increase its US output by 5-6 million tons annually.
Moreover, Surma indicated that
US Steel is also interested in purchasing a stake in the privatization of Turkish producer
Erdemir.