Big River Steel Welcomes Completion of U. S. Steel Partnership Investment

OSCEOLA, Ark., Oct. 31, 2019 /PRNewswire/ -- Big River Steel said today it completed the transaction announced earlier this month in which United States Steel Corporation (X) ("U. S. Steel") would become a minority owner of Big River Steel's scrap recycling and steel production company. Under the terms of the agreement, which assumes a $2.325 billion enterprise value, U. S. Steel will hold a 49.9% ownership interest in the world's only LEED-certified steel production facility. U. S. Steel's investment will sit alongside of the majority ownership position held by Big River Steel's executive management team and the Arkansas Teachers Retirement System, and the preferred equity ownership position held by KM BRS, LLC (a subsidiary of Koch Minerals, LLC) and TPG Furnace, L.P. (an affiliate of TPG Growth).

"I applaud U. S. Steel's leadership team and board of directors for taking this bold step as part of their effort to advance their company by drawing from the best of both the integrated and mini mill steel making communities," said David Stickler, chief executive officer of Big River Steel. "With U. S. Steel joining the already formidable ownership group at Big River Steel, I anticipate an acceleration of our growth and expansion plans. I look forward to working closely with Dave Burritt, U. S. Steel's president and chief executive officer, and the other members of his team to prove that the most advanced steels in the world can be produced in the United States in an environmentally sustainable manner."

Big River Steel is currently installing equipment and technology at its Osceola mill that will double the company's annual production capacity from 1.65 million tons to 3.3 million tons of flat-rolled steel. The efforts underway will facilitate Big River Steel's ability to produce even higher grades of electrical steel, demand for which is expected to increase with continued focus on energy efficiency and the increase in hybrid and electric vehicle sales.

Forward Looking Statements

This press release shall not constitute an offer to sell or the solicitation of an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. 

This press release may contain forward-looking statements, including, but not limited to, the expansion project and financing plans, including the offering of the bonds and equity financing. Forward-looking statements may generally be identified by the use of the words "anticipates," "expects," "intends," "plans," "should," "could," "would," "may," "will," "believes," "estimates," "potential," "target," or "continue" and variations or similar expressions. These statements are based upon the current expectations and beliefs of management and are subject to certain risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. Readers are cautioned not to place undue reliance on any of these forward-looking statements. These forward-looking statements speak only as of the date hereof. We undertake no obligation to update any of these forward-looking statements to reflect events or circumstances after the date of this press release or to reflect actual outcomes, except as required by law.

About Big River Steel

Big River Steel invested $1.3 billion to build and start up the world's first Flex Mill®, a steel mini mill focused on the production of a wide product spectrum, including advanced automotive steels and electrical steels. Since operations began in early 2017, Big River Steel has provided steel products to nearly 200 customers in the automotive, energy, construction and agricultural industries.  At Big River Steel, there's no talk of the status quo. True innovation leads to growth and is rebellious.

SOURCE Big River Steel

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