US Steel to construct EAF and tubular coupling plant in Alabama

US Steel will invest $277.5m in the construction of an electric arc furnace (EAF) and tubular products coupling facility at its plant in Jefferson County, Alabama, US.

The $230m EAF steelmaking facility will replace Fairfield Works plant's existing blast furnace.

The facility is part of the company's The Carnegie Way programme that envisages initiatives to improve customer intimacy, operating flexibility, cost structure and raw materials position.

Constructed at a cost of $47.5m, the tubular coupling facility will manufacture couplings with premium, semi-premium and American Petroleum Institute (API) connections for customers in the oil and gas industries.

The facility will feature four cells to manufacture couplings for all of the company's premium connections, including USS Liberty FJM, USS-Patriot EBM and USS-Patriot TC , for customers in the energy industry.

US Steel president and CEO Mario Longhi said: "These investments will directly support US Steel's ongoing transformation journey.

"Together, these projects will enhance our operational flexibility and allow us to serve our customers better, two critical steps in creating shareholder value."

In particular, the two projects are expected to create around 650 temporary jobs over the course of construction.

Having received the necessary authorization and economic incentives from Jefferson County, the company will start construction of the EAF in the second quarter this year, for planned completion in the third quarter of 2016.

The construction on the coupling facility will also commence in the second quarter and will complete in the first quarter of 2016.

Meanwhile, the company will continue to operate Fairfield Works' steelmaking and finishing operations throughout the process.