Shares of United States Steel Corp. slipped on Thursday after the company said it would spend $1.2 billion to construct new plants in Pennsylvania, its most significant investment in decades and one that promises to speed up production while reducing costs.
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|X||UNITED STATES STEEL CORPORATION||11.16||-0.64||-5.42%|
Alongside a new casting and rolling plant in Braddock, Pennsylvania, the company is also constructing a cogeneration facility in Clairton slated to include new “state-of-the-art emissions control systems” that it expects will result in significantly improved carbon output compared to existing plants.
CEO David Burritt said the investment aligns with its vision to deliver solutions to “our customers’ most challenging steel needs for the future.”
“We believe that adding sustainable steel technology to our footprint will create long-term value for our employees, our region, our customers and our investors,” he said in a statement.
The Mon Valley Works, the area outside of its headquarters in Pittsburgh where U.S. Steel has its production operations, makes 2.9 million net tons of steel a year, material then used for automotive manufacturing and other industries.
The investment will not lead to increased steelmaking capacity, U.S. Steel said in the statement.