U.S. Steel to delay construction on Mon Valley Works complex
2020-03-31 08:54:00 [Print]
U.S. Steel is delaying construction for its $1 billion project at the Mon Valley Works, part of an effort to secure its long-term future as COVID-19 disrupts oil and gas markets around the world.
The long-term plan, which the company announced last Friday, calls for the delay of projects like the Mon Valley Works, a reduction in capital spending and the idling of some operations. U.S. Steel expects the financial and operational impacts of the new coronavirus will lead to a meaningful reduction in demand for the full fiscal year.
In Pittsburgh, U.S. Steel has delayed construction at its Mon Valley facilities for an indeterminate amount of time until market conditions become more certain, President and CEO David Burritt said. The Mon Valley facilities include Edgar Thomson Works in Braddock, Clairton Coke Works and the Irvin plant in West Mifflin.
The latest project, which was originally set to break ground in September, included an endless casting and rolling line and a cogeneration facility that were meant to increase the site's efficiency and sustainability and reduce emissions. The casting and rolling mill was set to start in the fourth quarter of 2022, and the cogeneration plant was scheduled to be running at full capacity by mid-2023.
Along with the Allegheny County Health Department, U.S. Steel decided to temporarily suspend the permitting process for new construction because efforts to prevent the spread of COVID-19 would have made the public comment process difficult.
U.S. Steel plans to spend about $85 million on the Mon Valley Works in 2020 and said it will continue to assess the timeline and remaining budget.
Around the country, the Pittsburgh steelmaker is also planning to idle some operations in response to changing market demands and a significant drop in oil prices.
The long-term plan, which the company announced last Friday, calls for the delay of projects like the Mon Valley Works, a reduction in capital spending and the idling of some operations. U.S. Steel expects the financial and operational impacts of the new coronavirus will lead to a meaningful reduction in demand for the full fiscal year.
In Pittsburgh, U.S. Steel has delayed construction at its Mon Valley facilities for an indeterminate amount of time until market conditions become more certain, President and CEO David Burritt said. The Mon Valley facilities include Edgar Thomson Works in Braddock, Clairton Coke Works and the Irvin plant in West Mifflin.
The latest project, which was originally set to break ground in September, included an endless casting and rolling line and a cogeneration facility that were meant to increase the site's efficiency and sustainability and reduce emissions. The casting and rolling mill was set to start in the fourth quarter of 2022, and the cogeneration plant was scheduled to be running at full capacity by mid-2023.
Along with the Allegheny County Health Department, U.S. Steel decided to temporarily suspend the permitting process for new construction because efforts to prevent the spread of COVID-19 would have made the public comment process difficult.
U.S. Steel plans to spend about $85 million on the Mon Valley Works in 2020 and said it will continue to assess the timeline and remaining budget.
Around the country, the Pittsburgh steelmaker is also planning to idle some operations in response to changing market demands and a significant drop in oil prices.
