The board of directors for U.S. Steel Corp. approved the full funding of a multibillion-dollar investment for a new hot strip mill at its Mon Valley Works Edgar Thomson Plant near Pittsburgh, the company announced Oct. 22.
The nearly $3 billion investment will replace aging equipment with new steelmaking technology and allow U.S. Steel to increase annual production capacity by 59.1%, from 2.2 million short tons to about 3.5 million st. The company will also be able to expand the range of products it can produce for its customers.
“We are bringing world-class technology to the Mon Valley, creating new capabilities for our customers, and strengthening American steelmaking for the next generation,” David Burritt, president and CEO of U.S. Steel, said in a statement.
The company expects initial production to begin in late 2029.
The new mill is expected to increase productivity and product quality, reduce energy use and expand the types of steel products the facility can produce, according to the company.
Platts, part of S&P Global Energy, last assessed the TSI US hot-rolled coil ex-works Indiana price at $1,320/st on Oct. 22, up 60% from $825/st a year ago.
