Steel Mills

US Steel Reorganizes Tubular Business
Written by Sandy Williams
March 9, 2016
US Steel revealed a new corporate structure for its tubular operations last week. Ownership of the Lorain, Ohio and Fairfield, Ala., operations has been transferred to a new, wholly owned subsidiary US Tubular Operations, LLC.
US Steel Seamless Tubular Operations, LLC and the existing US Steel Tubular Products, Inc. (a subsidiary of US Steel Corporation), which includes Lone Star Tubular Operations and Wheeling Machine Products facilities, were moved under a new holding company called US Steel Tubular Products Holdings, LLC. This new holding company is a wholly owned, direct subsidiary of US Steel Corporation.
US Steel spokesperson Sarah Cassella said the “realignment has no effect on terms and conditions of contracts, product offerings, our facility locations or employment levels.” There were no leadership changes as a result of the internal transaction.
“The origin of this internal transaction was in response to the product and bid qualification requirements we faced while attempting to grow our tubular business with Middle Eastern oil and gas customers,” said Cassella in an email to SMU. “We are nearing completion of the process to establish a representative office in Dubai, UAE, to be staffed by US Steel Tubular employees so that we can be closer to customers for OCTG products in the Middle East.”
There has been speculation that the realignment will lead to a sale of some of the assets following heavy losses and layoffs in the tubular operations. US Steel did not confirm or deny the possibility but instead reiterated its general stance on strategic opportunities:
“US Steel continuously evaluates potential strategic and organizational opportunities, which may include the acquisition, divestiture or consolidation of assets.”

Sandy Williams
Read more from Sandy WilliamsLatest in Steel Mills

Cleveland-Cliffs quietly removes name from Steelton mill
The Cleveland-Cliffs name has been removed from its idled Steelton rail mill. SMU asked Cliffs about the move and if it might signal that it is selling the mill...

Nucor sees sequentially lower Q3 profits across all three business segments
Nucor's third-quarter earnings will be down quarter-over-quarter, but still higher than a year earlier.

Hyundai still on for Louisiana steel mill despite US raid at Georgia battery plant
Hyundai has reaffirmed its commitment to build a steel plant in Louisiana following a US government immigration raid at its battery facility in Georgia.

Hybar lowers output forecast, owning up to EAF startup delay
Hybar LLC’s rebar mill in Osceola, Ark., is now melting scrap and will soon be fulfilling orders, according to CEO David Stickler, despite a six-to-eight-week delay caused by commissioning the world’s first Aura electrical system.

Steel Dynamics guides to more metal, more money in Q3
Steel Dynamics Inc. is bullish heading into the close of the third quarter, with all three of its operating segments tracking higher.