US Steel Reorganizes Tubular Business

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.”