U.S. Steel has been investing heavily in its new mini mill operations down South in recent years.
The Pittsburgh-based steelmaker, one of the Region’s largest employers, just opened a $450 million a new, non-grain oriented electrical steel line for electric vehicles at its Big River Steel mill in Arkansas. It’s also pumping $3 billion in Big River Steel 2, which is the largest investment in Arkansas state history.
The steelmaker, which put up a comparatively modest $60 million in its pig iron operations in Gary Works to supply Big River with pig iron, has been having a major economic impact in Arkansas. It estimates it generated $382 million in economic impact in Arkansas last year, where it supports and sustains 1,747 jobs.
“At U.S. Steel, our Best for All strategy means delivering stockholder value and being the best partner to our customers, our suppliers, our planet, and the communities in which we operate,” said President and Chief Executive Officer David B. Burritt. “That certainly includes Arkansas. We are thrilled that U. S. Steel’s operations have had such a transformative effect in northeast Arkansas. And we’ve only just begun; Big River Steel 2, currently under construction, will create another 900 jobs.”
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U.S. Steel’s Arkansas operations include Big River Steel in Osceola and Wheeling Machine Products in Pine Bluff. The company said it offers competitive wages at the non-union plants.
“These jobs with these kinds of pay levels create the opportunity for wealth-building in families that literally changes the arc of affordability generation to generation,” said Randy Zook, President and Chief Executive Officer of the Arkansas State Chamber of Commerce and the Associated Industries of Arkansas. “As a community partner, our goal is to bring value to Osceola, northeast Arkansas and the state, over the long haul. With the ongoing success of our first plant and construction of our second one well underway, we look forward to continuing our profitable and productive relationship with the people of Arkansas and adding even greater economic benefits to the regional community,” said Daniel Brown, Senior Vice President of Advanced Technology Steelmaking and Chief Operating Officer of Big River Steel Works.
U.S. Steel commissioned an economic impact study by Parker Philips that would the company contributed $16.3 million in state and local taxes in Arkansas, donated $1 million to charities and has $219 million in direct economic impact and $164.2 million in induced impact. The Big River 2 construction project will have an estimated impact of $5.2 billion.
It continues to invest in Arkansas while swathes of Gary Works, including the former merchant mill, sit empty.
“An economic impact analysis is an objective way to measure the impact of an organization in the regional economy. It is a tool that policy makers and local businesses can use to inform their decisions,” said Nichole Parker, a principal partner at Parker Philips. “Through its operations, as well as philanthropic giving and community engagement, U.S. Steel is making a major contribution to the local, state, and regional economies.”
