US Steel considering Eastern Europe acquisitions

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.