U.S. Steel Closes on Purchase of Balance 50% Stake in USS-POSCO Industries

SEATTLE (Scrap Monster): Pittsburgh-based U.S. Steel Corporation announced that it has closed on the purchase of the remaining 50% stake in USS-POSCO Industries (UPI), effective February 29, 2020. The purchase of the POSCO-California Corporation (POSCAL)'s 50% partnership interest provides an opportunity for U.S. Steel to operate UPI as a separate entity.

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The U.S. Steel company press release noted that the purchase transaction is further to both U.S. Steel and POSCAL arriving at a conclusion that ownership of USS-POSCO Industries by a single group provides best opportunity for effective operation and better customer service. The press release also noted U.S. Steel’s intention to run UPI as an entirely independent business unit.

The purchase agreement was signed during end-January this year. Meantime, the partners have been working together to ensure a smooth, constructive transaction.

Pittsburgh, California-headquartered UPI is a manufacturer of cold-rolled sheets, galvanized sheets and tin mill products from hot bands mainly supplied by U.S. Steel. UPI’s annual production capability is estimated at around 1.5 million tons.