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U. S. Steel Breaks Ground on State-of-the-Art Expansion at Its Granite City Works


GRANITE CITY, Ill., May 5 /PRNewswire-FirstCall/ -- United States Steel Corporation (NYSE: X), in partnership with SunCoke Energy, Inc., broke ground today on a $570 million joint capital investment program to support the U. S. Steel Granite City Works. U. S. Steel will provide $280 million in this joint capital investment program. As part of the program, Gateway Energy and Coke Company, an indirect wholly owned subsidiary and affiliate of SunCoke Energy, will construct, own and operate heat recovery coke ovens. The ovens will have an annual coke making capability of 650,000 tons and utilize state-of-the-art technology to produce coke in an environmentally responsible way. The program also includes the construction of a cogeneration facility to be owned and operated by U. S. Steel.

Construction of these facilities is expected to take 18 months and will generate approximately 900 temporary construction jobs at its peak. When completed, these facilities are expected to create 88 full-time jobs while enhancing the long-term viability of the U. S. Steel Granite City Works.

"Our more than 2,000 dedicated employees and their predecessors have made this facility a key contributor to the local economy for more than 100 years, while supplying high-quality flat-rolled carbon sheet steel to the construction, container, pipe and tube, service center, and electrical industries. This significant new investment demonstrates U. S. Steel's commitment to environmental stewardship, highlights our commitment to Granite City and the surrounding communities, and helps to ensure that our entire company remains well positioned in an increasingly competitive global industry," said U. S. Steel Executive Vice President and Chief Operating Officer John H. Goodish.

The new coke facility will use SunCoke Energy's proven low-emission technology to process coal into coke, a key ingredient in steelmaking. The technology has been recognized by the U.S. Environmental Protection Agency as setting the standard for coal processing ovens. The energy generated in the coke making process will be used in a cogeneration plant that will provide electricity to Granite City Works.

U. S. Steel and SunCoke Energy worked closely with environmental stakeholders to establish a number of benchmarks to further demonstrate our joint commitment to environmental stewardship. Both companies will go beyond compliance by taking additional steps to monitor and reduce emissions at existing facilities. The companies will also create a trust fund for area projects that promote environmental conservancy.

Among those participating in the groundbreaking ceremony were Illinois Gov. Rod Blagojevich; U.S. Rep. John Shimkus; Illinois state Reps. Tom Holbrook, Jay Hoffman, and Daniel Beiser; Illinois state Sen. William Haine; Ed Hagnauer, mayor of Granite City; John Goodish, executive vice president and chief operating officer of United States Steel Corporation; Mike Thomson, executive vice president and chief operating officer of SunCoke Energy, Inc.; Sharon Owen, general manager of U. S. Steel Granite City Works; employees of U. S. Steel and SunCoke Energy as well as other state and local elected officials.

This release contains forward-looking statements concerning the construction of a coke facility and a cogeneration facility. The timing, cost and ultimate capability and employment potential of the facilities are subject to several conditions including, among others, the terms of construction contracts, availability of materials, possible construction problems or delays, demand for steel products as it impacts operations at Granite City Works, general economic conditions and the financial condition of U. S. Steel and Gateway. 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.

For more information about U. S. Steel, visit

For more information about SunCoke Energy Incorporated, visit

SOURCE: United States Steel Corporation

CONTACT: Courtney Boone, +1-412-433-6791, or John Armstrong,
+1-412-433-6792, or Erin DiPietro, +1-412-433-6845, all of United States Steel

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