U.S. Steel Manufacturers Forge $1.5 Billion in Third-Quarter Project Kickoffs

Researched by Industrial Info Resources (Sugar Land, Texas)--The U.S. steel-manufacturing sector is witnessing a sustained period of growth, with capital expenditures at their highest levels in years. Industrial Info is tracking nearly $1.5 billion in active steel-manufacturing projects that are set to begin construction in the U.S. in the third quarter, with Ohio and Texas accounting for the bulk of the investment value.

Click on the image at for a graph detailing the top 10 U.S. states for third-quarter steel-manufacturing kickoffs, by investment value.

One of the leading areas for the sector is the Texas Gulf Coast, where steel-manufacturing plants are heavily involved in furnishing materials for the Oil & Gas Industry. TPCO America Corporation, a subsidiary of TEDA Investment Holding Company Limited (Tianjin, China), is preparing for an expansion at its seamless steel pipe-rolling mill in Gregory, which would produce 550,000 tons per year of pipeline that meets the specifications for oil country tubular goods (OGTC). For more information, see Industrial Info's project report.

OGTC is defined by the International Molybdenum Association as "a family of seamless rolled products consisting of drill pipe, casing and tubing, subjected to loading conditions according to their specific application." Industrial Info is tracking five other projects at OGTC-producing plants in the U.S. and Canada, which are set to begin construction between now and the end of 2020; click here for a list.

Other steel producers are rebuilding or upgrading equipment to keep their facilities at peak productivity. United States Steel Corporation (NYSE:X) (U.S. Steel) (Pittsburgh, Pennsylvania), which claims to have benefited from President Trump's tariffs on imported steel, is preparing to repair and reline a furnace at its Great Lakes Works plant in Ecorse, Michigan. The project includes replacing and upgrading a gas-cleaning system to reduce emissions at the 3 million-ton-per-year mill. For more information, see Industrial Info's project report.

U.S. Steel has made such furnace projects a priority as the demand for their services continues to rise. "We completed nine large infrastructure projects and underspent the budget," said David Burritt, the chief executive officer of U.S. Steel, of the company's first fiscal quarter in an earnings-related conference call. "These projects include multiple blast furnace stove rebuilds at various facilities and steel shop environmental projects at Great Lakes Works and Granite City Works."

Industrial Info is tracking more than 60 other rebuild projects at U.S. steel-manufacturing facilities, with construction kickoff dates ranging from now through early 2021. Some of these projects are still in their planning phase, where plenty of factors can delay, alter or eliminate projected investment. Click here for a list.

"Capital expenditures in the U.S. steel industry are at a multi-year high as steel firms invest in new or updated technology to take advantage of favorable market drivers, opened up by demand and trade war drivers," said Joseph Govreau, vice president of Metals & Minerals Research for Industrial Info. "I'm expecting this level of spending to continue through at least 2020, based on company capital spending announcements."

In addition to the above-mentioned capital projects, Industrial Info is tracking 25 maintenance-related projects at steel-manufacturing facilities that are set to begin next quarter. Completion dates for these projects range from the same quarter to first-quarter 2020. Click here for a list.

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle™, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com/.