ArcelorMittal Steelton said it has received approval for $54 million in capital funding that will significantly upgrade the rail production process with a new walking-beam reheat furnace that includes advanced energy and environmental technology.
"In what remains a very
challenging time for our industry, support for this project represents a
significant investment in the long-term sustainability of ArcelorMittal
Steelton," said Dave Wirick, general manager, ArcelorMittal Steelton. "There is
no doubt that the close partnership between management and the United
Steelworkers, as well as the leadership and dedication of the Steelton workforce,
contributed to our plant receiving the funding approval."
The reheat furnace and
related equipment installation will be an important part of a strategic
upgrade, improving the competitive position of Steelton while also making the
facility more energy efficient. The Company’s Group Management Board and
Investment Allocation Committee recently reviewed and approved the investment
"Capital investment in
equipment and technology is crucial to the long-term viability of the company
and the job security of its workers. I praise the joint USW and management
efforts that led to the facility securing the capital investment in Steelton,
which will improve the facility’s future prospects not only for members of the
USW, but for all stakeholders who have an interest in the success of
ArcelorMittal," said Leo W. Gerard, United Steelworkers, International
Complementing the long
history of rail production in Steelton, Pa., since 1867, this investment
reaffirms the company’s commitment to its domestic Class 1 and passenger rail
customers and underscores the importance of maintaining a focus on quality and
productivity. This project will enhance Steelton’s position to meet the needed
improvements in rail infrastructure and will support the growth of high-speed
passenger service in the U.S.
"In a time of such
economic uncertainty, I am pleased to see such a strong investment in the
Steelton facility to not only improve rail making operations for domestic rail
customers, but to also increase energy efficiency, preserve jobs, and advance
the competitive position of the industry in the region," said Congressman Tim
"This capital investment demonstrates ArcelorMittal’s
commitment to providing sustainable jobs, improving energy efficiency and
ensuring the competitiveness and viability of steelmaking in Steelton," said
Pennsylvania Governor Rendell. "I commend the company for moving forward with
this vital project and appreciate ArcelorMittal’s continued work to strengthen
the region and our great state."
The new furnace is
projected for start-up in 2012.