2017 United States Steel Corporation. United States Steel Corporation

Transcription

1 2017

2 Matthew Nee General Manger, Logistics 16+ years with U. S. Steel 5+ years Logistics Services Experience in commercial organization as account manager in automotive Experience in processed products organization managing relationships with 3 rd party processors Experience in business planning organization scheduling mill productions 2

3 Global Market Position & Business Activities 24th largest global steel producer (2016 production data) 22 million net tons per year steelmaking capability Largest integrated steel producer headquartered in the United States Largest integrated North American tubular products producer Second largest Central European flat-rolled producer Well-positioned in raw materials Talented research and development organization Transportation subsidiary railroads 3

4 History Founded in 1901 The largest business enterprise of its time ever launched The first billion dollar corporation First company to hold an annual meeting of stockholders (1902) First company to publish an annual report (1903) First recognized code of business ethics (1909) Has employed more than 1 million people since its inception 4

5 A Leader in Sheet & Tubular Market Segments Market Segments Appliance Tin Automotive Construction Energy (oil, natural gas and petrochemical) Service Center Equipment Manufacturing Converter 5

6 Market Position Automotive Major supplier to all North American producers Appliances Major supplier to North American producers Tin mill products Largest tin mill products producer Value-added construction Strong position Tubular products Largest integrated North American tubular producer Largest seamless size range Significance Metallurgically demanding applications with specialized customer service and technical support Minimills typically do not make these value-added products Just-in-time inventory requirements favor domestic suppliers Production costs globally competitive Strong diversification through leading positions in key end markets 6

7 North American Flat-rolled Segment Manufacturing Facilities Great Lakes Works Granite City Works Gary Works East Chicago Tin Midwest Plant Mon Valley Works Clairton Plant Edgar Thomson Plant Irvin Plant Fairless Plant Fairfield Works 7

8 Mining Solutions Commercial Entity Minnesota Ore Operations Minntac / Keetac 22.4 million tons of annual capacity Over 900 million tons of recoverable reserves available Received necessary permits for Minntac expansion project in 2014 (483 acres, extends mine life by 16 years) Iron ore pellets are suitable for potential DRI production Able to ship pellets to Košice (if necessary) Minnesota Ore Operations Minntac Keetac Hibbing Taconite Company / Tilden Mining Company Approx. 15% JV interest in each Approx. 2.5 million tons of annual capacity (U. S. Steel share) 53 million tons of recoverable reserves available (U. S. Steel share) U. S. Steel acquired interest in mines through 2007 Stelco acquisition 8

9 Tubular Segment Manufacturing Facilities Lorain Tubular Operations Lone Star Tubular Operations, Wheeling Machine Products Wheeling Machine Products Fairfield Tubular Operations Offshore Operations Houston Rig Site Services Tubular Processing Houston Operations 9

10 U. S. Steel Europe Segment Manufacturing Facilities Integrated steel plant in Slovak Republic Key industries: automotive, construction, service center, packaging and conversion COKE U. S. Steel Košice Slovak Republic Automotive/appliance galvanizing line Historically favorable growth rates and infrastructure investment in primary geographic market V4* Significant coke making and power generating capability * Visegrad Group Czech Republic, Hungary, Poland and Slovakia 10

11 Steel Shipments by Product & Market Flat-rolled Full Year 2016 By Product Products Tons (000s) 8% 1% Hot-rolled Sheets 2,784 28% Cold-rolled Sheets 3,775 Coated Products 2,655 Tin Mill Products 831 Semi-finished and Plates 23 Other 26 26% Hot-rolled Sheet Cold-rolled Sheet Coated Sheet Tin Mill Products All other Total 10,094 37% Major Market Tons (000s) Further Conversion 4,073 Steel Service Centers 1,765 Transportation (incl. Auto) 1,725 Containers 600 6% 7% 4% 8% By Market 40% Further Conversion Steel Service Centers Transportation Containers Construction 725 Appliances & Electrical 420 Exports 436 Other 350 Total 10,094 17% 18% Construction Appliances & Electrical All other 11

12 Steel Shipments by Product & Market Tubular Full Year % By Product Products Tons (000s) OCTG 351 Standard & Line Pipe 49 Other 0 Total 400 OCTG Stnd & Line Pipe 88% By Market Major Market Tons (000s) Energy 340 Construction 40 Exports 20 Total % 5% Energy Construction Exports 85% 12

13 Transtar is 7 Operating Companies 2 Linehaul Carriers 3 Switching Carriers 2 Contract Rail Carrier Active Employees 545 Customers 30+ Track Miles Operated 276 Railroad Crews/Day 55+ Revenue Cars/Year 275,

14 U. S. Steel Logistics Services 2016 Transportation Summary Statistics Truck 59% of steel shipments move by truck Nearly 9 million tons shipped Over 332,000 truck loads across nearly 2,500 lanes Over 150 active truck carriers hauling over 63 million miles Rail 40% of steel shipments move by rail Over 6 million tons shipped Over 70,000 rail cars across nearly 400 lanes Business with all major Class I Railroads & several short lines Barge 1% of steel shipments move by barge Nearly 182,000 tons shipped 124 barges across 5 lanes

15 U. S. Steel Logistics Services North American Rail Freight Industry What are the RRs doing well? Where can the RRs improve? Business development successes Future