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U. S. Steel Files Permits to Construct Cutting-Edge Carbon Alloy Synthesis Facility in Sumter County


MONTGOMERY, Ala., April 18 /PRNewswire-FirstCall/ -- United States Steel Corporation (NYSE: X) announced today that it has filed permit applications related to a proposed capital investment program totaling in excess of $150 million in Port of Epes in Sumter County, Ala. The program would involve the construction of a carbon alloy synthesis facility and a cogeneration facility that would create 75 full-time and 250 temporary construction jobs in its first phase of operation. The program will improve the cost competitiveness of U. S. Steel's Fairfield Works near Birmingham. Completion of the proposed program would take an estimated 18 months after the permitting process is concluded.

The proposed facility would utilize state-of-the-art technology supplied by Carbonyx, Inc. that processes coal into Cokonyx™ carbon alloy material, a product that can displace traditionally manufactured coke, a key ingredient in steelmaking. The facility would produce 250,000 tons of Cokonyx™ carbon alloy material per year. All of the Cokonyx™ carbon alloy material produced at the proposed facility would be used at U. S. Steel's Fairfield Works. The Carbonyx process employs technology that results in a significant reduction in emissions and energy consumption when compared to a traditional coke making facility or other commercial non-recovery processes. Additionally, the gasses created during the process would be utilized in the proposed cogeneration facility.

After the facility has attained full production and adequate product testing has occurred, the project may then move into further phases subject to business conditions. Upon completion of all phases, 235 full-time positions will have been created and $450 million will have been invested in the project over a period of years.

U. S. Steel will work with appropriate agencies and stakeholders to complete the permitting process for the initial project phase, which the company hopes to conclude later this year. The decision to proceed following the receipt of the necessary permits will depend upon permitting, business conditions and approval of U. S. Steel's Board of Directors.

"The future of steelmaking requires new thinking and the use of breakthrough technologies in order to operate in cost-effective and environmentally responsible ways," said U. S. Steel Chairman and CEO John P. Surma. "By partnering with Carbonyx, Inc., U. S. Steel is demonstrating its willingness to utilize innovative technologies as alternatives to traditional coke making that will still result in a high-quality carbon source for our Fairfield Works and ensure consistent environmental performance and compliance. We look forward to working cooperatively with Gov. Bob Riley, the federal, state and local elected officials representing Alabama's historic agricultural Black Belt, and other stakeholders involved in this important project."

U. S. Steel's operations in Alabama date back one hundred years to the company's acquisition of Tennessee Coal, Iron and Railroad Company on Nov. 1, 1907. Today, the company operates two facilities in Fairfield: Fairfield Works, which is the largest steelmaking facility in Alabama and has an annual raw steelmaking capability of 2.4 million net tons, and Fairfield Tubular Operations, a seamless pipe mill that produces tubular products primarily for the energy industry. U. S. Steel also manages and develops various real estate assets in Alabama through its USS Real Estate division.

Located in the Gulf South's Coastal Plain, Alabama's historic agricultural Black Belt is named after the dark, mineral-rich topsoil that is produced by the weathering of an exposed limestone known as the Selma Chalk.

This release contains forward-looking statements concerning the construction of a carbon alloy synthesis facility and a cogeneration facility. The timing, cost and ultimate capability of the facilities are subject to, among others, the receipt of necessary government permits, terms of construction contracts, availability of necessary technology and materials, general economic conditions and the financial condition of U. S. Steel. In accordance with "safe harbor" provisions of the Private Securities Litigation Act of 1995, cautionary statements identifying important factors, but not necessarily all factors, that could cause actual results to differ materially from those set forth in the forward-looking statements have been included in the Form 10-K of U. S. Steel for the year ended Dec. 31, 2007, and in subsequent filings for U. S. Steel.

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SOURCE: United States Steel Corporation

CONTACT: Courtney Boone, +1-412-433-6791, or Erin DiPietro,
+1-412-433-6845, both of United States Steel Corporation

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