U. S. Steel announced a $1.9 billion investment to build a new direct reduced iron (DRI) facility at Big River Steel Works in Osceola, Arkansas. According to the company, the new facility will be the first of its kind in the United States.
The investment strengthens U. S. Steel's next-generation steelmaking capabilities and reinforces its position as a leader in modern, efficient steelmaking, the company said. The new facility will leverage U. S. Steel's 2022 investment into direct reduced-grade pellet capabilities at its Minnesota Ore Operations Keetac plant, creating a direct link between our mining operations, EAF feedstock creation, and steel production at Big River Steel Works.
Critically, by sitting DRI production at Big River Steel Works, where the more than $3 billion Big River 2 expansion is now in full production and there are four electric arc furnaces (EAF), this investment will eliminate the need to ship DRI to the facility and builds in a competitive sourcing advantage for Big River’s feedstock.
“From iron ore in Minnesota to steel production in Arkansas, this $1.9 billion investment strengthens our ability to create steel that is truly mined, melted, made in America, from start to finish. By vertically integrating DRI production directly at Big River Steel Works, we enhance efficiency, secure our competitive advantage, and position U. S. Steel for long term success. Our partnership with Nippon Steel helped accelerate this investment years sooner than would have otherwise been possible,” said U. S. Steel President and Chief Executive Officer David B. Burritt.
Together, these investments advance vertical integration across U. S. Steel's operations under a single, integrated American supply chain, improving efficiency, quality, and supply chain control while enhancing the company's ability to deliver consistent, high-quality steel with greater reliability for its customers, the company said.
According to U.S. Steel, this project is expected to support approximately 200 full-time Big River Steel Works employees and 35 full-time embedded contractor roles, while creating an estimated 2,000 construction jobs at peak—further strengthening our workforce and economic impact in the region.
Source: U.S. Steel
