US Steel declines expansion plans and turns to cost reduction

Author: Paul Ploumis
24 Sep 2014 Last updated at 08:14:41 GMT
OTTAWA (Scrap Monster): At its facility in Gary, the company concentrates on the production of a substitute product of coke.  The company stated the it has enough raw materials which would assist in the company's production.

After facing losses for consecutive five years  the company  has decided to  apply for bankruptcy protection aggregating about 2.4 billion dollars. The company is also seeking help from the court to continue production until restored an alternative. In order to support the production till the end of 2015, the company plans to allow its Canadian unit with 168.6 million dollars as DIP financing.

These are all the part of US Steel's initiative of operating as a competitor in an environment of steel recovery, by concentrating on the reduction of cost and increasing efficiency. The company also announced that it anticipates the third quarter results would be much better than the Wall Street estimation.