U.S. STEEL CORPORATION

U.S. Steel Corporation

U.S. Steel Corporation

Introduction

United States Steel Corporation (US Steel) is primarily engaged in the manufacture and sales of a range of steel sheet, plate, tubular and tin products, coke, and taconite pellets. The company is also involved in a number of other businesses such as transportation services (railroad and barge operations), real estate operations, and engineering and consulting services. US Steel operates in North America and Europe. It is headquartered in Pittsburgh, Pennsylvania and employs about 49,000 people.

United States Steel Corporation (US Steel) is an integrated steel producer with production operations in North America and Europe. It is the largest integrated steel producer in North America. The company has annual raw steel production capability of 31.7 million net tons (24.3 million tons in North America and 7.4 million tons in Europe).

Company Description

United States Steel Corporation (US Steel) is primarily engaged in the manufacture and sales of a range of steel sheet, plate, tubular and tin products, coke, and taconite pellets. It is the largest integrated steel producer in North America and eighth largest steel producer in the world. US Steel has annual raw steel production capacity of 24.3 million tons in North America and 7.4 million tons in Europe. Strong market position enables it to benefit from cost reductions through economies of scale and increases its bargaining power. However, increasing competition in the industry could lead to loss of market share and put pressure on the company's margins (Hoffman, Thomas, 1992).

Size

US Steel operates its business through three segments: flat rolled products, US Steel Europe (USSE), and tubular products. The flat rolled products segment produces slabs, sheets, tin mill products, strip mill plates, and rounds for tubular. It also includes all iron ore and coke production in the US and Canada. This segment primarily serves customers in the service center, conversion, transportation, container, construction, appliance, and electrical markets in the US (Sheridan, 1998).

The segment has an annual raw steel production capability of 24.3 million tons. The flat rolled segment includes the operating results of US Steels North American integrated steel mills and equity investments involved in the production of slabs, sheets, tin mill products, strip mill plates, and rounds for tubular, as well as all coke production facilities. These operations are principally located in the US and Canada. US Steel produced 19.2 million tons of raw steel in FY2009.

The US Steel Europe segment (USSE) produces and sells sheet, strip mill plate, tin mill, tubular products, as well as heating radiators and refractories. This segment primarily serves customers in the European construction, service center, conversion, container, transportation (including automotive), appliance and electrical, and oil, gas, and petrochemical markets (Norton, 1996).

The tubular products segment produces and sells seamless and electric resistance welded (ERW) tubular products. This segment includes the operating results of US Steels domestic tubular production facilities, and equity investees in the US and Brazil.The tubular segment has the capability to produce 2.8 million tons of tubular products annually. Seamless products are produced on a mill located at ...