US Steel implements new operating model, organizational structure
U.S. Steel says its new operating model will save $200 million annually in fixed costs.
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US Steel implements new operating model, organizational structure

Company says its new operating model will save $200 million in annual fixed costs by 2022.

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October 9, 2019

United States Steel Corp., Pittsburgh, has announced that it is implementing a new operating model and organizational structure designed to “accelerate the company’s strategic transformation and better serve its customers.” The changes will go into effect Jan. 1, 2020, and are expected to reduce costs and more closely align U. S. Steel’s corporate structure with its previously announced strategic investments in technology and advanced manufacturing, including the recently announced purchase of a minority interest in Arkansas-based Big River Steel, the company says.

U. S. Steel’s leadership team will be realigned around more nimble and efficient executive functions, sharpening focus on operational and commercial excellence and promoting technological innovation, the company says. This will enable U.S. Steel to establish a more competitive cost structure with enhanced capabilities to serve priority customers in strategic markets. The company says these changes will enable U. S. Steel to drive profitable growth, deliver capital and operational cash improvements and position U. S. Steel to be an industry leader in delivering high-quality, value-added products through its investments in Big River Steel and at its Mon Valley Works in Pennsylvania and its Gary Works in Indiana.

“Our enhanced leadership team structure is the right next step to help U. S. Steel achieve its ambitious strategy to create the leading integrated and mini mill steel company with a world competitive, ‘best of both’ footprint to better serve our customers,” says U. S. Steel President and Chief Executive Officer David B. Burritt. “We are intensely focused on improving our capabilities to win in strategic markets, reducing structural costs with a leaner footprint and attracting and investing in the best talent that share our S.T.E.E.L. Principles.”

Burtitt adds that the changes will make U.S. Steel “a more focused, agile organization with a world-class leadership team ideally structured to capitalize on market opportunities and position us for success.”

Separately, and unrelated to the enhanced operating model, U. S. Steel has announced that Sara A. Greenstein, senior vice president of consumer solutions, has resigned effective Oct. 11 to assume the role of chief executive officer of a publicly traded company. Joe Smous, general manager, construction and converters, has been appointed interim head of consumer solutions, effective Oct. 11, and will report directly to Burritt. Also, effective Oct. 11, program management of the construction of the endless casting and rolling line at Mon Valley Works, as well as corporate communications, also will report directly to Burritt.

Burritt says, “Sara has made tremendous contributions to our company, both to our customers and our people. She has provided great leadership at the Mon Valley and was a key player in developing the endless casting and rolling investment we announced in May. I am excited for her next chapter as well as for the recognition of the caliber of U. S. Steel’s executive team. All of us at U. S. Steel thank her for her efforts and wish her the best in her next endeavor.”

U.S. Steel also has announced that Christine (Christie) S. Breves, currently senior vice president, manufacturing support, and chief supply chain officer, has been appointed chief financial officer of the company, effective Nov. 4. Kevin P. Bradley, the current executive vice president and chief financial officer of U. S. Steel, is resigning and will remain with the company as executive vice president and adviser to the CEO to provide transitional support through the end of 2019.  Breves will retain her current responsibilities through the end of the year, most of which will be realigned with the new organizational model effective Jan. 1, as described below.

The following individuals will remain members of the U. S. Steel senior vice president executive team, effective Jan. 1, 2020, reporting directly to Burritt:

Business leaders:

Scott Buckiso, currently senior vice president, automotive solutions, has been named chief manufacturing officer North American flat-rolled (NAFR) segment. He will lead all NAFR production facility activities with a focus on safety, quality, delivery and cost for customers and stockholders, the company says. Buckiso continues to be responsible for implementing U. S. Steel’s advanced high-strength steel coating line at the PRO-TEC joint venture and will assume responsibility for the execution of the remaining strategic projects that will create a hot-strip mill at the company’s Gary Works facility.  He also will assume leadership for U.S. Steel’s logistics services organization; Transtar, U. S. Steel’s short-line railroad subsidiary; sales and operations planning; engineering; and corporate quality.

Doug Matthews, currently senior vice president, industrial, service center, mining solutions and tubular, has been named chief commercial and technology officer. Matthews will lead all NAFR commercial activities and integrate all innovation, research, development and information technology in North America with a focus on customer satisfaction, new business, market share growth, new technology and digitization acceleration, the company says. In addition, he will continue to provide leadership to the tubular and mining businesses, including the electric arc furnace (EAF) under construction in Alabama.

Jim Bruno, senior vice president, European solutions, and president, U. S. Steel Košice (USSK) in Slovakia, will continue to lead all aspects of European commercial and operating activities, including the world-class electrical steel Dynamo line currently under construction at USSK, as president of U. S. Steel Europe.

Functional support leaders:

Breves, currently senior vice president, manufacturing support, and chief supply chain officer, will assume the role and responsibilities of chief financial officer, effective Nov. 4.  Following the Jan. 1 reorganization, Breves will retain responsibility for procurement and cash management, along with the responsibilities of the principal financial officer function.

Rich Fruehauf, currently senior vice president, strategic planning and corporate development, has been named chief strategy and development officer. He will continue to lead strategy, government affairs, environmental affairs and sustainability to ensure delivery of identified synergies through a leaner footprint with more sustainable development focus, U.S. Steel says.

Duane Holloway will continue to lead all aspects of the general counsel function, including ethics and compliance, as general counsel, chief ethics and compliance officer and corporate secretary.  

Barry Melnkovic will continue to lead all aspects of talent management, as well as labor relations and payroll, as chief human resources officer.