U. S. Steel said the flat-rolled mill represents a potential US$3 billion investment that will pair two state-of-the-art electric arc furnaces (EAFs) with differentiated steelmaking and finishing technology. It also will play an important role in helping the company achieve its goal to reduce greenhouse gas emissions intensity by 20% over this decade, the company said. 

“Our customers are looking for like-minded partners to continue marching toward a sustainable future,” said U. S. Steel president and chief executive David B. Burritt. “We are demonstrating our commitment to this shared goal by beginning the process to increase our sustainable steelmaking capability.” 

U. S. Steel said its board has authorized an exploratory site selection process for the mill. Potential locations include Alabama and Arkansas, where the company has existing EAF operations. Other greenfield sites are also possibilities.  

U. S. Steel said the final investment requirement is subject to ultimate site selection and scope of value-added downstream finishing assets. The project is to be funded through existing cash and expected free cash flow, U. S. Steel said. 
 
“We already own and operate the most advanced and sustainable mini-mill in the United States. Now we plan to expand this competitive advantage by continuing to combine our research and development and product innovation, deep customer relationships, and low-cost iron ore with additional mini-mill steelmaking technology to create long-term value for our investors. Our goal is to build capability to get better, not bigger,” Burritt said.  

U. S. Steel final site selection and other construction terms are subject to a number of factors, including state and local support as well as final board approval. 

If all goes according to plan, the company said it would expect to begin construction in the first half of 2022.