US Steel announced this week an exploratory site selection process to build a new state-of-the-art mini mill in the United States.
The US Steel Board of Directors has authorized an exploratory site selection process to build capability with a new, 3 million ton mini mill flat-rolled facility to be constructed in the United States. The planned mini mill will combine two state-of-the-art electric arc furnaces (EAF) with differentiated steelmaking and finishing technology, including purchased equipment already owned by the company.
In a press release, the company said the continued adoption of mini mill technology will expand its ability to produce the next generation of highly profitable proprietary sustainable steel solutions, including Advanced High Strength Steels.
Potential locations include both states in which the company has existing EAF operations as well as greenfield sites. The current estimated investment is approximately $3.0 billion and is currently expected to be funded primarily from existing cash and expected free cash flow. The final investment requirement is subject to ultimate site selection and scope of value-added downstream finishing assets.
US Steel said the planned mini mill investment is a significant step towards achieving its 2030 goal of reducing its global greenhouse gas (GHG) emissions intensity by 20 percent, compared to a 2018 baseline, and positions the company to progress on its 2050 net zero carbon emission target. Additional mini mill steelmaking will also create a platform to expand US Steel’s verdeXTM sustainable product line, delivering differentiated steels made with significantly lower GHG emissions than the traditional integrated steelmaking process.
The company said final site selection and other construction terms are subject to a number of factors, including state and local support and final approval by the US Steel Board of Directors. Upon receipt of required environmental and operating permits, the company would expect to begin construction of the mini mill in the first half of 2022 with production currently expected to begin in 2024.