US Steel cancels $ 1 billion investment in Mon Valley Works
US Steel Corp. reported on April 30 that she had canceled a more than $ 1 billion capital investment project planned for her work in Mon Valley.
The announcement of the end of the project came during the manufacturer’s first quarter 2021 earnings call. The Pittsburgh-based steelmaker said the move was based on the company’s increased focus on sustainability, a commitment exemplified by its recent announcement to achieve carbon neutrality by 2050, its membership in the nonprofit forum ResponsibleSteel and its purchase of the rest. stake in Big River Steel, cited as the only LEED certified steel plant in the country.
âWe assessed how we allocate capital through the prism of sustainability, value creation and reduction of capital and carbon intensity across the entire footprint. When the facts change, we must change. And as we move forward to meet the needs of a rapidly changing world, we must put aside the endless Mon Valley casting, rolling and cogeneration project, âsaid David Burritt, President and CEO by US Steel. “It was not a decision we took lightly.”
In what US Steel described as “an open letter to our Pittsburgh family,” also dated April 30, the company further noted that it had “carried the ball into the field as far as possible without the issuance of the permits needed to begin construction, which we requested when we announced the project, ten months before COVID-19 began. “
US Steel first announced the Mon Valley Works investment in May 2019. It included a new endless casting and rolling facility at the company’s Edgar Thomson plant in Braddock, Pa., As well as a new cogeneration facility at its Clairton plant in Clairton, Pa. Both sites are part of the Mon Valley Works.
Although the project was canceled, commissioning and manufacturing of the equipment had already started, with spending of more than $ 170 million. This equipment is in storage, according to the CEO, who added that the company is studying where to place it.
Burritt also said that My Valley remains an important component of the company’s asset portfolio. âTo be clear, Mon Valley remains a structurally competitive steel asset in our portfolio. This is our cheapest steelmaking plant in our flat-rolled segment, âhe said on the earnings call. âMon Valley will continue to serve strategic markets, including home appliance and construction customers.
The steelmaker also announced plans to permanently idle three coke batteries at its Clairton plant – accounting for 17% of coke production – by early 2023.
US Steel released its first quarter 2021 results a day before the Mon Valley Works announcement. The company reported net profit of $ 91 million, compared to a net loss of $ 391 million in the same period a year ago.