U.S. Steel Corporation has announced it will spend $3 billion to build a new mill in Osceola, Arkansas that is expected to create at least 900 full-time direct and indirect jobs with annual average wages of at least $100,000.
According to the company, the new facility will feature two electric arc furnaces capable of producing 3 million tons per year of advanced steelmaking, a state-of-the-art endless casting and rolling line and four advanced finishing lines capable of galvanizing roughly 1 million tons of steel, painting approximately 165,000 tons and slitting about 250,000 tons.
Permitting for the project is underway, with the company expected to break ground in the first quarter of 2022. The facility is expected to be fully operational in 2024 and, upon completion, will apply to become LEED certified.
"With this location selected and shovels ready, we are reshaping the future of steelmaking," U. S. Steel president and CEO David Burritt said in a statement. "We had numerous competitive site options, but Osceola offers our customers incomparable advantages."
U.S. Steel touted the area's abundant, increasingly renewable and clean power from Entergy Arkansas, Class 1 rail service from BNSF with connections to other railroads, Mississippi River docks and interstate trucking access.
"Our nation and our customers need a robust and resilient supply chain to meet consumers’ needs, and that starts with U. S. Steel’s advanced, sustainable steels," Buritt added. "Steel is critical to so much of what the world builds, so how we make our products contributes directly to a better, more sustainable world for all. This new facility will build that future."
Once completed, the new facility and the company's nearby Big River Steel plant will form a 6.3 million ton mega mill capable of producing some of the most advanced and sustainable steels in North America.
"Arkansas has created an ideal business environment for the growth of the steel industry in our state," Arkansas Gov. Asa Hutchinson said. "The investment and high paying jobs that will result from this announcement will make a real difference in the lives of many families in Northeast Arkansas."
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Shares of U.S. Steel have jumped 3% during Wednesday's trading session.