United States Steel Corp., Pittsburgh, announces two capital investment projects valued at a total of $277.5 million at its Fairfield Works in Birmingham, Ala. The first is the construction of a technologically advanced electric arc furnace (EAF). The second is construction of a plant that will develop and manufacture oil country tubular goods with premium connections for the oil and gas industries.
The EAF is part of the company’s larger transformation, the Carnegie Way, in which a large number of initiatives are being implemented to improve the company’s customer understanding, operating flexibility, cost structure, and raw materials position. The tubular coupling facility will feature four cells to manufacture couplings for all of U. S. Steel’s premium connections, including USS-Liberty FJM, USS-Patriot EBM, and USS-Patriot TC connections, for customers in the energy industry.
U. S. Steel has received the necessary authorization and economic incentives from Jefferson County to invest $230 million to construct the EAF at Fairfield Works in place of the facility’s existing blast furnace, and an additional $47.5 million in the construction of the coupling facility. The construction project will be a significant investment into Jefferson County, as it will create approximately 650 temporary construction jobs over the course of both projects, and will ensure the future of steelmaking in Alabama.
Construction of the EAF will begin in the second quarter of 2015, with completion expected in the third quarter of 2016. The construction on the coupling facility is also anticipated to begin in the second quarter of 2015, and is expected to be complete in the first quarter of 2016. Throughout the process, U. S. Steel will continue to operate Fairfield Works’ steelmaking and finishing operations to serve both flat-rolled and tubular customers in accordance with market requirements.
