US Steel looks toward Europe for raw materials
US Steel CEO John P. Surma said that his company is looking to buy European
iron ore and coal assets to improve the material infrastructure of
US Steel Europe.
Surma further explained in his speech delivered at a Rotary Club of Pittsburgh luncheon on Wednesday, May 25 that while
US Steel was not expressly looking for total ownership,
US Steel did want to ensure better prices and availability.
US Steel recently announced the
construction of a hot dip galvanizing facility at its
US Steel Kosice operation in
Slovakia. The effort to acquire raw material assets would help to consolidate company efforts to meet the demand of the
automotive industry in Central
Europe.
US Steel currently buys its coal for Kosice from
Russia,
Poland, the Czech Republic, and the United States.
Surma denied that
US Steel would make another bid for Kryvorizhstal,
Ukraines largest steel operation even though it is open for privatization again. Kryvorizhstal was the cause of much controversy when the consortium led son-in-law of then-President Leonid Kuchma bought the mill from the government at a price below the bids of their competitors.