Uss: Upgrade to Mon Valley - Continuous Casting vs Compact-Strip Production

1803 Words8 Pages
USS and the Steel Industry History USS Corporation was created in 1901 as a mining and steelmaking company through a series of mergers. At that time, they controlled 65% of the raw steelmaking industry in the United States. Early on, USS used an aggressive investment strategy. In 1917 they were the first corporation in the United States to reach over $1 billion in revenues. They also employed 168,000 employees which was almost 1% of the total U.S. labor force. Decades later, USS’s investment and technology strategies started becoming less aggressive. Their U.S. market share declined and was only around 20% at the beginning of 1980. The economic recession hit in early 1980’s. Manufacturing costs for USS were high due to their lack of investments in new technologies. Their revenues, market share, and work force continued to decrease dramatically through the 1980’s. A large reason for USS’s decline was the introduction of the minimill steel manufacture to the industry. These minimills used 100% scrap for their raw material. When they entered the industry, they produced products that required less quality like concrete reinforcing bars. Over the years, minimills with their more advanced technology started producing other products such as structural steel products and higher quality bars. Minimills saw cost advantages over integrated mills such as less restrictive work rules due to a non-labor force, lower equipment costs, and favorable tax and utility rates. They could often undercut integrated mill’s costs by around 20%. In order to compete, USS replied to these advances in the industry in two ways. They started by closing their facilities that were noncompetitive and keeping their mills that were more efficient. This decreased their capacity. The second way was restructuring of their facilities and making changes to their product strategy. They

More about Uss: Upgrade to Mon Valley - Continuous Casting vs Compact-Strip Production

Open Document