U.S. Steel Begins Construction of $1.9 Billion Iron Plant in Osceola

U.S. Steel initiated construction on a new direct reduced iron production facility on its Big River Steel Works campus in Osceola on Friday, Oct. 30. The project represents a $1.9 billion investment and is the first of its kind for the company. Upon completion, the plant is projected to generate approximately 200 full-time positions for local workers.

The facility is positioned adjacent to Big River Steel 2. It will supply direct reduced iron to the electric arc furnaces at that site. This material is essential for producing steel used in the automotive, appliance, and solar industries. The location connects U.S. Steel’s Minnesota iron ore operations with its manufacturing capabilities in Arkansas.

Construction activities are scheduled to start in late 2026, with preliminary site preparation currently underway. The company estimates that the build-out phase will create up to 2,000 construction jobs in the region. These temporary roles will provide employment opportunities for local residents during the development period.

David Burritt, President and CEO of U.S. Steel, stated that the investment builds on the success of the existing team at Big River Steel Works. He noted that the project strengthens the Northeast Arkansas economy while advancing modern steelmaking methods. Dan Brown, Executive Vice President of Advanced Technology Steelmaking, added that the project adds momentum to the region’s steelmaking efforts and creates new opportunities for the community.

Governor Sarah Sanders described the project as a response to the nation’s need for steel in upcoming infrastructure projects. She emphasized that the investment puts more Arkansans to work, from the construction site to the mill floor. Arkansas Secretary of Commerce Hugh McDonald said the facility strengthens Arkansas’s status as a steelmaking hub and expressed gratitude for the company’s confidence in the state.

U.S. Steel announced its intent to locate the direct reduced iron facility in Arkansas in April 2026. This expansion follows a $3 billion investment in Big River Steel 2, which began producing steel in 2024. The company acquired Big River Steel in 2021 and has continued to expand its operations in Mississippi County since that time.