Posted on 10 Oct 2019
US Steel plans to launch a major restructuring as part of its recent $700 million acquisition of 49% of mini-mill competitor Big River Steel, Kallanish understands.
The core of the restructuring is an “... enhanced operating model” and leadership changes, which the company estimates will give it $200 million/year in fixed cost savings by 2022. The new model takes effect 1 January.
“The realignment of US Steel’s leadership team around more nimble and efficient executive functions, notably to sharpen focus on operational and commercial excellence and promote technological innovation, will enable the company to establish a more competitive cost structure with enhanced capabilities to serve priority customers in strategic markets,” the company says. “Additionally, this enhanced operating model will create a new, differentiated US Steel with a team that is charged with leading the execution of the strategy and increasing profitability.”
As part of the new model, US Steel has named a slate of top executives to a team that will report directly to ceo David Burritt.
Scott Buckiso, the current senior vice president for automotive solutions, will serve as chief manufacturing officer of the North American flat-rolled segment.
Current senior vice president for industrial, service centre, mining solutions and tubulars Doug Matthews will now serve as chief commercial and technology officer, while US Steel Košice senior vice president Jim Bruno will continue in his present duties as president of US Steel Europe.
Separately, US Steel announced that its chief financial officer Kevin Bradley has resigned and will be replaced by chief supply chain officer Christine Breves. Bradly will remain with the company as an executive vice president and adviser through the end of the year.
