Ferrosource announced a new steel processing facility located on U. S. Steel’s Big River Steel Works (BRSW) campus in Osceola, Arkansas. The project looks to create a supply chain solution that eliminates inbound freight costs, cuts transit times and reduces material handling for manufacturers and distributors across the central U.S.
The company expects operations to begin in August.
The new Ferrosource Metal Processing (FMP) facility will offer a zero-inbound-freight processing model, allowing customers to source mill-produced steel and value-added processing in one integrated location. FMP will also offer customers a multi-modal outbound logistics platform with direct access to truck, rail and barge transportation. Additionally, the adjacent Mississippi River system provides low-cost barge access throughout the Midwest and central U.S. via the Mississippi, Ohio, Missouri, Illinois and Arkansas river networks.
FMP will complement current capacity and support the continued expansion at Big River Steel Works. The facility will be equipped to process and service new products coming online at BRSW, including Galvanized, Galvalume, Galvannealed, Pre-Painted and Cold Rolled Steel. The site will serve manufacturers directly across a range of end-use sectors, including construction, agriculture, HVAC, appliance, metal building and other downstream markets.
“By locating processing directly at Big River Steel, we can offer manufacturers a fundamentally more efficient supply chain: lower logistics costs, faster turnaround, fewer material touches and access to responsibly produced steel,” Ferrosource Vice President of Commercial and Business Development Kevin Udolph said. “This facility is designed to strengthen the competitive position of steel-consuming manufacturers across the heart of the country.”
Ferrosource worked closely with Big River Steel, the State of Arkansas, the Arkansas Economic Development Commission and Mississippi County during this economic development project. The project also received support from federal and state economic development programs focused on rural investment, including anticipated New Markets Tax Credit financing.
The company expects the nearly $70 million to support more than 40 full-time jobs at steady-state operation and more than 100 total jobs in Arkansas. It will hire for a range of positions, including crane, slitter and forklift operators, maintenance professionals, inside and outside sales and logistics professionals.
