US Steel to Invest Up to $325 Million in Capital Projects

SEATTLE (Scrap Monster): US Steel has announced its decision to invest between$275 million and $325 million in capital projects during the year. The investments will be towards development of next generation of steel products and solutions. Further, the investments would provide stronger support for the current and future needs of its customers.

U.S. Steel CEO David Burritt stated that the earlier investments in assets have started delivering results. It must be noted that the company had recently invested around 1.2 billion in upgrading its flat-rolled mill facilities. The progress of its asset revitalization program indicates that the company has been successful in exceeding its targets with respect to quality improvement and reliability. The proposed new investments will also be carried out in a prudent, controlled and disciplined manner so as to deliver the highest possible returns over a period of time, Burritt noted.

The company had recently announced the full year 2017 results, which had revealed that investments in assets resulted in a more stable performance. In line with the expectations, US Steel had reported full year net earnings of $387 million as against a net loss of $440 million during 2016. Also, adjusted net earnings had improved to $341 million, upon comparison with adjusted net loss of $250 million in 2016.

Commenting on the results, Burritt stated that the company has been able to make good progress on asset revitalization program in 2017. Also, the company managed to achieve all quality and reliability improvements that were committed for the year. Further, he expressed optimism that US Steel will be able to achieve all of its improvement objectives for 2018. US Steel aims to achieve net earnings of $685 million and an adjusted EBITD of around $1.5 billion in 2018, he added.