US Steel to buy remaining stake in Big River Steel
2020-12-10 12:54:45 [Print]
U.S. Steel will buy the remaining stake in a northeast Arkansas steel mill for $774 million, the company announced on Tuesday.
The Pittsburgh-based iron ore mining and steelmaking company has had a 49.9% stake in Osceola, Arkansas-based Big River Steel since fall 2019 and has intended to take full control within four years. It exercised its call option to do that and will use cash on hand to buy the remaining equity in Big River, U.S. Steel said. The deal is expected to close during the first quarter of 2021.
After an expansion is complete, Big River will become one of the largest electric arc furnace-oriented flat-rolled steel operations and produce up to 3.3 million tons of hot-rolled steel annually to automotive, energy, construction and agricultural industries, the companies said.
Big River began production in 2017. It operates a flex mill in Osceola, and uses a different type of feed stock, relying on richer iron content inputs such as scrap metal or direct-reduced iron.
U.S. Steel operates the Minntac and Keetac iron ore mines and pellet plants in Mountain Iron and Keewatin, and both operations produce taconite pellets that are fed into U.S. Steel's traditional blast furnaces.
The Pittsburgh-based iron ore mining and steelmaking company has had a 49.9% stake in Osceola, Arkansas-based Big River Steel since fall 2019 and has intended to take full control within four years. It exercised its call option to do that and will use cash on hand to buy the remaining equity in Big River, U.S. Steel said. The deal is expected to close during the first quarter of 2021.
After an expansion is complete, Big River will become one of the largest electric arc furnace-oriented flat-rolled steel operations and produce up to 3.3 million tons of hot-rolled steel annually to automotive, energy, construction and agricultural industries, the companies said.
Big River began production in 2017. It operates a flex mill in Osceola, and uses a different type of feed stock, relying on richer iron content inputs such as scrap metal or direct-reduced iron.
U.S. Steel operates the Minntac and Keetac iron ore mines and pellet plants in Mountain Iron and Keewatin, and both operations produce taconite pellets that are fed into U.S. Steel's traditional blast furnaces.
