Steel Mills
SunCoke Joins US Steel in USW Contract Negotiations
Written by Laura Miller
July 11, 2022
As it prepares to take over the two blast furnaces at US Steel’s Granite City Works in Illinois, SunCoke Energy is joining the contract negotiations in Pittsburgh that started this week between US Steel and the United Steelworkers union.
It was announced last month that SunCoke and US Steel have signed a non-binding letter of intent for SunCoke to take over the two Granite City blast furnaces and convert them to pig iron production. At that time, it was estimated that only 550 employees would still be working once the shift to pig iron production happens in 2024.
In a July 10 bargaining update, the USW explained that “We have successorship language in our labor agreement with USS that requires SunCoke Energy to bargain the terms of a labor agreement with the USW or accept the current labor agreement.” SunCoke has requested to bargain the terms of an agreement, the union said.
“I have also requested to bargain the effects of the possible sale with USS, which we will try do in Pittsburgh,” Mike Millsap, USW bargaining chair for the talks with US Steel, noted in the update.
The USW’s current labor pact with US Steel is currently set to expire on Sept. 1 and covers all of US Steel’s US locations except for the Big River Steel Works in Arkansas.
SunCoke Energy told SMU that it can not specify the number of employees required for the new operations as it is still assessing the project and capital requirements. No clear timeline has been set on finalizing the deal with US Steel. But once a deal is reached, it should take approximately two years for the project to become operational.
By Laura Miller, Laura@SteelMarketUpdate.com
Laura Miller
Read more from Laura MillerLatest in Steel Mills
Decision on fate of USS/Nippon deal pushed to after elections: Report
The US government’s decision on whether it will block Nippon Steel’s acquisition of U.S. Steel on national security grounds has been pushed until after the November elections.
Cliffs steadfast in commitment to Middletown decarb project
Cleveland-Cliffs Inc. on Monday reiterated its commitment to a major decarbonization project at its Middletown Works in Ohio, despite an earlier report suggesting otherwise.
Nucor expects lower steel prices to drive Q3 earnings decline
Nucor blamed lower steel prices for weaker third-quarter results in earnings guidance released on Tuesday.
SDI guides toward lower Q3 earnings on weaker flat-rolled steel prices
Steel Dynamics Inc. (SDI) expects lower third-quarter earnings on the heels of “meaningfully lower” prices at its flat-rolled steel operations. The Fort Wayne, Ind.-based steelmaker expects Q3’24 earnings of $1.94 to $1.98 per diluted share, according to figures released on Monday. That’s down from $2.72 per share in Q2’24 and down from $3.47 per share in Q3’23.
Stelco shareholders OK $2.5B sale to Cliffs
Stelco shareholders voted overwhelmingly on Monday to OK the $2.5-billion sale of the Canadian flat-rolled steelmaker to Cleveland-Cliffs. Indeed, 99.97% of those who cast ballots voted to approve the deal, according the Hamilton, Ontario-based steelmaker.