United States Steel announced this morning its complete purchase of Big River Steel, which produces steel in Northeast Arkansas. It paid $774 million for remaining equity interest.
The company had acquired almost half of Big River in 2019.
Construction on the $1.3 billion Big River mill in Mississippi County began in 2014, with help from $125 million in state financing for super projects. It doubled its size with an expansion in 2018. Koch Industries was the biggest investor in the startup, touted as a high-tech, lower-cost mill. The state Teacher Retirement System also had a $125 million stake in the company. No word yet on what the purchase has produced for ATRS.
Here’s a rundown of the initial incentives from the state to get the plant up and running.
UPDATE: Looks like a pretty good investment for the Teacher Retirement System. I got this summary from Clint Rhoden, the executive director:
ATRS has approximately $150 million in Big River Steel equity investment. We are expecting around $280 million to be distributed to ATRS when the sale is final and the funds are distributed. The early estimate is a 15% return for the equity investment. The return estimate will change based on the timing of the distribution.