Big River Steel and US Steel make it official

Big River Steel (BRS) has completed the transaction announced earlier this month in which United States Steel Corporation (US Steel) would become a minority owner of Big River Steel's scrap recycling and steel production company.

Under the terms of the agreement, which assumes a US$2.325 billion enterprise value, US Steel will hold a 49.9% ownership interest in the world's only LEED-certified steel production facility.

US Steel's investment will sit alongside of the majority ownership position held by Big River Steel's executive management tea and the Arkansas Teachers Retirement System, and the preferred equity ownership position held by KM BRS LLC (a subsidiary of Koch Minerals LLC) and TPG Furnace, LP (an affiliate of TPG Growth).

David Stickler, chief executive of BRS, commented: "I applaud US Steel's leadership team and board of directors for taking this bold step as part of their effort to advance their company by drawing from the best of both the integrated and mini mill steel making communities. With US Steel joining the already formidable ownership group at Big River Steel, I anticipate an acceleration of our growth and expansion plans."

Stickler said he was looking forward to working closely with US Steel's president and chief executive officer, Dave Burritt, and this team 'to prove that the most advanced steels in the world can be produced in the United States in an environmentally sustainable manner'.

BRS is currently installing equipment and technology at its Osceola, Arkansas, mill that will double the company's annual production capacity from 1.65Mt to 3.3Mt of flat-rolled steel. According to the company, 'the efforts underway will facilitate Big River Steel's ability to produce even higher grades of electrical steel, demand for which is expected to increase with continued focus on energy efficiency and the increase in hybrid and electric vehicle sales'.