OSCEOLA, Ark., Oct. 1, 2019 /PRNewswire/ -- Big River Steel announced today it has entered into
an agreement with United States Steel Corporation (X)
("U. S. Steel") in which Big River will receive
$700 million in cash in return for a
minority ownership interest in its scrap recycling and steel
production company. Under the terms of the transaction, which
assumes a $2.325 billion enterprise
value, the companies will form a joint venture under which
U. S. Steel will hold a 49.9% ownership interest. As part
of its investment, U. S. Steel will hold an option to
acquire the remaining 50.1%. Big River
Steel's original owners will also hold certain options
related to the future ownership make up of Big River Steel should
U. S. Steel choose not to exercise its option.
Big River's Osceola, Arkansas
Flex Mill™ is the world's only LEED-certified steel mill and is the
newest and most technologically advanced flat-rolled mill in
North America. Since production
began in early-2017, Big River has already positioned itself as one
of the premier steel producers in North
America in terms of profitability, product quality, employee
productivity and environmental sustainability.
Big River's early success and entrepreneurial culture has led to
commencement of construction on a project that will double Big
River Steel's production capacity from 1.65 million tons to 3.3
million tons of flat-rolled steel. This investment will facilitate
the company'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.
"Five years ago we started Big River Steel with five employees
with BIG ideas and today we are partnering with a company started
by Andrew Carnegie 118 years ago,"
said David Stickler, chief executive
officer of Big River Steel. "As partners with
U. S. Steel, we intend to prove to the world that the
best way to make steel is by combining the best of traditional
integrated steel making with the best of electric arc furnace mini
mill steel making."
Forward Looking Statements
This press release shall
not constitute an offer to sell or the solicitation of an offer to
sell or the solicitation of an offer to buy any securities, nor
shall there be any sale of securities in any jurisdiction in which
such offer, solicitation or sale would be unlawful prior to
registration or qualification under the securities laws of any such
jurisdiction.
This press release may contain forward-looking statements,
including, but not limited to, the expansion project and financing
plans, including the offering of the bonds and equity financing.
Forward-looking statements may generally be identified by the use
of the words "anticipates," "expects," "intends," "plans,"
"should," "could," "would," "may," "will," "believes," "estimates,"
"potential," "target," or "continue" and variations or similar
expressions. These statements are based upon the current
expectations and beliefs of management and are subject to certain
risks and uncertainties that could cause actual results to differ
materially from those described in the forward-looking statements.
Readers are cautioned not to place undue reliance on any of these
forward-looking statements. These forward-looking statements speak
only as of the date hereof. We undertake no obligation to update
any of these forward-looking statements to reflect events or
circumstances after the date of this press release or to reflect
actual outcomes, except as required by law.
About Big River Steel
Big River Steel invested $1.3 billion to build and start up the world's
first Flex Mill™, a steel mini mill focused on the production of a
wide product spectrum, including advanced automotive steels and
electrical steels. Since operations began in early 2017, Big River
Steel has provided steel products to nearly 200 customers in the
automotive, energy, construction and agricultural industries.
At Big River Steel, there's no talk of the status quo. True
innovation leads to growth and is rebellious.
About U. S. Steel
United States Steel Corporation,
headquartered in Pittsburgh, Pa.,
is a leading integrated steel producer and Fortune 250 company with
major operations in the United
States and Central Europe. For more information about
U. S. Steel, please visit www.ussteel.com.
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SOURCE Big River Steel