US Steel looks toward Europe for raw materials

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, Ukraine’s 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.