United States Steel Corp. will build a new mini mill near an existing mini mill it owns in Arkansas.
The Pittsburgh-based iron and steelmaker said Tuesday that the company will break ground on the new $3 billion, three million ton-per-year mill in Osceloa, Ark., in the second quarter of 2022.
“With this location selected and shovels ready, we are reshaping the future of steelmaking,” David Burritt, U.S. Steel president and chief executive officer said in a news release. “We had numerous competitive site options, but Osceloa offers our customers incomparable advantages.”
U.S. Steel in January 2021 closed a deal to acquire 100 percent of Big River Steel in Osceloa. Osceloa is in northeast Arkansas near the Mississippi River.
Building a new mill near Big River Steel will give the two mills a combined annual steelmaking capacity of 6.3 million tons.
Two electric arc furnaces, a state-of-the-art endless steel casting and rolling line, and advanced finishing capabilities, will be featured at the new mill.
The site provides abundant, increasingly renewable and clean power supplied by Entergy Arkansas, Class 1 rail service, Mississippi River docks, and interstate trucking access, according to U.S. Steel.
“The State of Arkansas, Mississippi County, the City of Osceloa, Entergy, BNSF, and other parties have all worked to make this the clear choice path to a future without roadblocks,” Burritt said. “We're not going to make our stakeholders wait to see progress. We intend to break ground this quarter and get to work as soon as permits are in hand. With its extraordinary low-cost structure, energy efficient production equipment, and advanced capabilities, this $3 billion project will yield significant benefits to our customers, stockholders, communities, employees, and contribute to a more sustainable world.”
Mini mills use scrap and high-value iron products to make steel.
Domestic mini mills are increasingly producing a larger share of America's steel.