U.S. Steel to spend $1.9 billion on direct reduced iron facility in Osceola

U.S. Steel announced Wednesday (April 29) it will spend $1.9 billion to build a new direct reduced iron (DRI) facility at Big River Steel Works in Osceola, the first of its kind in the country.

The new facility will employ about 200 workers when it is finished. It will take up to 2,000 construction workers to build the plant. A timetable for the project has not been released.

“Northeast Arkansas’s reputation as a steel production leader is only getting stronger. Significant investments and deployment of innovative technology like this latest U.S. Steel facility in Mississippi County demonstrate profound confidence in our business climate and skilled workforce, which local, state and federal officials have all worked tirelessly to foster,” U.S. Sen. John Boozman, R-Ark. said. “I’m pleased Big River Steel is adding a new chapter with this historic announcement and look forward to the economic benefits it will deliver for workers, the region, our state and nation.”

The new facility will leverage U. S. Steel’s direct reduced-grade pellet capabilities at its Minnesota Ore Operations Keetac plant, creating a direct link between mining operations, EAF feedstock creation, and steel production at Big River Steel Works.

The company noted that its most recent expansion, the $3 billion Big River 2 plant on the campus is now in full production and there are four electric arc furnaces (EAF), this investment will eliminate the need to ship DRI to the facility and builds in a competitive sourcing advantage for Big River’s feedstock.

“From iron ore in Minnesota to steel production in Arkansas, this $1.9 billion investment strengthens our ability to create steel that is truly mined, melted, made in America, from start to finish. By vertically integrating DRI production directly at Big River Steel Works, we enhance efficiency, secure our competitive advantage, and position U. S. Steel for long term success. Our partnership with Nippon Steel helped accelerate this investment years sooner than would have otherwise been possible,” said U.S. Steel President and Chief Executive Officer David B. Burritt.