In a statement, U. S. Steel said it and the EAF-based steelmaker are forming a joint venture in which U. S. Steel will hold a 49.9% stake. It will have an option to acquire the remaining 50.1% of the business within the next four years. 

U. S. Steel said Big River carries an implied enterprise value of about US$2.3 billion.

“Our new partnership with Big River is designed to accelerate our strategy to offer our customers the ‘best of both’ by bringing together the capabilities of integrated and mini-mill steel production,” said U. S. Steel president and chief executive David B. Burritt. 

Big River’s mill began producing in late 2016 and is undergoing an expansion that will double its capacity to 3.3 million tons annually. The mill, based on SMS group technology, is designed to produce products more typically associated with an integrated facility, but operate with the flexibility of a mini-mill.  

U. S. Steel said the deal will reshape its flat-rolled footprint and “create a more nimble, agile and customer-focused organization with new presence to serve growing U.S. and Mexico markets.”

It also said the deal will complement its investments in Ohio, where its PRO-TEC Coating Co. joint venture is adding a third galvanizing line capable of producing advanced steels; its planned US$130 million non-oriented electrical steel line in Slovakia; its electric arc furnace project in Alabama; and the planned US$1 billion cast-roll facility at its Edgar Thomson plant in Pennsylvania.

“The investment in Big River, coupled with our announced investments at Mon Valley Works and Gary Works, would ultimately position U. S. Steel with three core, market-leading, differentiated and technologically advanced assets that will enable us to compete with anyone, anywhere, for generations to come. Each of these locations would be able to focus on the products that each facility is best designed to produce. As an organization, we will be nimbler, more resilient and our teams will be more efficient,” Burritt said. 

Big River chief executive Dave Stickler said the deal is a decisive vote of confidence in the company. 

“After just over two years of operations, we have built a unique platform that features the most advanced technology in our industry, and the very finest steel technicians in the business. We have always called ourselves a ‘technology company that just happens to make steel.’ In U. S. Steel, we have a like-minded, technology-focused partner with an enduring tradition of excellence and a commitment to innovation. We are very excited about the possibility for what we can do together.”