US Steel has signed a Non Binding Letter of Intent with raw material processing & handling company SunCoke Energy setting forth the preliminary terms for a potential arrangement under which SunCoke would acquire the two blast furnaces at Granite City Works and build a 2 million ton granulated pig iron production facility. Upon completion of the proposed facility, SunCoke would supply US Steel access to 100% of the pig iron production for the next ten years. US Steel intends to supply the needed iron ore to be used to produce the pig iron. Because the iron ore would come from US Steel’s own mines, the Company would realize a significant cost advantage. This pig iron could be used by EAFs and is expected to supply US Steel’s growing fleet of EAFs.SunCoke would be leading the efforts in construction of the new facility and repurposing of the blast furnaces. The contemplated pig iron production facility’s permitting and construction is expected to last approximately two years. This transaction is not expected to impact immediate staffing levels at Granite City Works.The proposed transaction is contingent upon several conditions, including the negotiation and execution of a definitive agreement, approval by the US Steel Board of Directors, and receipt of all appropriate regulatory approvals. There can be no assurance as to the final terms of the proposed transaction, that the conditions will be satisfied, or that the proposed transaction will be completed.Since 2009, SunCoke has operated a coke making facility at Granite City Works, supplying a key ingredient in blast furnace steelmaking.
US Steel has signed a Non Binding Letter of Intent with raw material processing & handling company SunCoke Energy setting forth the preliminary terms for a potential arrangement under which SunCoke would acquire the two blast furnaces at Granite City Works and build a 2 million ton granulated pig iron production facility. Upon completion of the proposed facility, SunCoke would supply US Steel access to 100% of the pig iron production for the next ten years. US Steel intends to supply the needed iron ore to be used to produce the pig iron. Because the iron ore would come from US Steel’s own mines, the Company would realize a significant cost advantage. This pig iron could be used by EAFs and is expected to supply US Steel’s growing fleet of EAFs.SunCoke would be leading the efforts in construction of the new facility and repurposing of the blast furnaces. The contemplated pig iron production facility’s permitting and construction is expected to last approximately two years. This transaction is not expected to impact immediate staffing levels at Granite City Works.The proposed transaction is contingent upon several conditions, including the negotiation and execution of a definitive agreement, approval by the US Steel Board of Directors, and receipt of all appropriate regulatory approvals. There can be no assurance as to the final terms of the proposed transaction, that the conditions will be satisfied, or that the proposed transaction will be completed.Since 2009, SunCoke has operated a coke making facility at Granite City Works, supplying a key ingredient in blast furnace steelmaking.
