Steel Mills
US Steel to Restructure Reporting Segments
Written by Sandy Williams
November 18, 2014
US Steel announced a realignment of its reporting segments in order to meet strategic goals set forth in its Carnegie Way transformation.
The North American flat-rolled segment will include creation of commercial entities to address specific markets. The realignment will take effect by January 1, 2015.
“These commercial entities will put our company in a stronger position to be best-in-class in product innovation, customer service and solutions, as well as steel manufacturing,” said Mario Longhi, president and chief executive officer of United States Steel. “In today’s global economy, it is important to be aligned as closely as possible with our customers and to help them address their ever-changing market demands. We have always worked closely with our customers, large and small. This realignment will help us get even closer to them, creating a more profound in-depth understanding of their needs which will result in mutual success,” continued Longhi.
1) Automobile Solutions will be based in Troy, Mich., working with customers to develop solutions for the auto industry using AHHS
2) Consumer Solutions will serve the appliance, packaging, container and construction markets and will include tin customers.
3) Industrial Solutions will focus on pipe and tube markets and agricultural and industrial markets.
4) Service Center Solutions will work with service centers and distributors.
5) Mining Solutions will focus on all operations relating to the Minnesota ore facilities, Minnetc and Keetac, with steel plants as the primary customer.
In addition, the Flat-Rolled segment will be “implementing strategic initiatives, including reliability centered maintenance, quality and a continued commitment to safety.”
US Steel Tubular Products, now Energy Solutions, will be based in Houston and focus on the oil and gas tubular market, from mill to rig. The entity will interface with research and development at US Steel Tubular Products Innovation and Technology Center.
US Steel Europe will become US Steel European Solutions.
The management structure and commercial entities will not affect how US Steel reports operating results: the three reportable operating segments will continue to be North American Flat-Rolled Products, Tubular Products, and U.S. Steel Europe.
Sandy Williams
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