US Steel invests in Fairfield Works

United States Steel Corp. (U.S. Steel), Pittsburgh, has announced two capital investments valued at $277.5 million that it will be undertaking at its Fairfield’s Works site in Birmingham, Alabama.

In addition to constructing what U.S. Steel says is a technologically advanced electric arc furnace (EAF) steelmaking facility, the company will build a tubular products coupling facility at the Fairfield Works site. The coupling facility will manufacture couplings with premium, semipremium and American Petroleum Institute (API) connections for customers in the oil and gas industries.

“These investments will directly support U.S. Steel's ongoing transformation journey,” says Mario Longhi, U.S. Steel president and CEO. “Together, these projects will enhance our operational flexibility and allow us to serve our customers better, two critical steps in creating shareholder value.”

The addition of the EAF is part of U.S. Steel’s larger transformation, which it calls The Carnegie Way. This change involves initiatives designed to improve its customer intimacy, operating flexibility, cost structure and raw materials position, U.S. Steel says. 

The company says its new tubular coupling facility is an integral part of its plan to develop and manufacture oil country tubular goods (OCTG) products with premium connections. The facility will feature four cells to manufacture couplings for all of U. S. Steel’s premium connections, including USS Liberty FJM, USS-Patriot EBM and USS-Patriot TC connections, for customers in the energy industry.

U.S. Steel says has received the necessary authorization and economic incentives from Jefferson County, Alabama, to invest $230 million to construct the EAF in place of the facility’s existing blast furnace and an additional $47.5 million to build the coupling facility. 

Construction of the EAF will begin in the second quarter of 2015. The company says it expects the project to be completed in the third quarter of 2016. U.S. Steel says construction of the coupling facility will begin in the second quarter of 2015 and should be complete in the first quarter of 2016. 

U.S. Steel will continue to operate the Fairfield Works’ steelmaking and finishing operations during construction.