CHICAGO Republic Steel has signed a five-year supply deal with U.S. Steel Corp. to provide tube rounds to the steelmakers tubular products division, according to Mexicos Grupo Simec SAB de CV, Republics parent company.
Canton, Ohio-based Republic has agreed to supply a minimum of 225,000 tons of tube rounds annually starting in January 2014, but that could reach as high as 450,000 tons, the company said. The steel will be produced in the new electric-arc furnace that is being installed at Republics plant in Lorain, Ohio. The new melt shop will have an annual capacity of 1.2 million tons and will start operations in the second half of this year.
U.S. Steel declined to comment.
Pittsburgh-based U.S. Steel has tubing operations in Lorain; Fairfield, Ala.; McKeesport, Pa.; Wheeling, W.Va.; and Texas, where it has four facilities.