Cleveland-Cliffs Comments on U.S.-EU Steel Section 232 Agreement

Rhea-AI Summary

Cleveland-Cliffs Inc. (NYSE: CLF) welcomed the Biden Administration's new steel Section 232 arrangement with the European Union. This tariff rate quota aims to protect U.S. steel companies from increased imports. CEO Lourenco Goncalves emphasized the importance of maintaining strong Section 232 measures for national security. Cleveland-Cliffs has invested over $1 billion since 2017 in a cutting-edge direct reduction plant in Toledo, Ohio, which produces low CO2 hot briquetted iron. This agreement acknowledges the environmental leadership of the U.S. steel industry.

Positive

• New tariff rate quota arrangement will protect U.S. steel industry from harmful import surges.
• Cleveland-Cliffs has invested over $1 billion since 2017 to enhance production and reduce CO2 emissions.
• Agreement recognizes the U.S. as the most environmentally friendly steel industry.

Negative

• None.

CLEVELAND--(BUSINESS WIRE)-- Cleveland-Cliffs Inc., (NYSE: CLF) today issued the following statement regarding the announcement by President Biden’s Administration of an alternative steel Section 232 arrangement between the United States and the European Union.

Lourenco Goncalves, Cleveland-Cliffs' Chairman, President and Chief Executive Officer, said, “Today’s announcement of an alternative Section 232 measure with the EU is evidence that President Biden and his Administration understand the critical role of the steel Section 232 program in providing a level playing field for American companies and workers. This tariff rate quota arrangement will guard against a harmful surge of steel imports from the EU.

The agreement recognizes that the United States has the most environmentally friendly steel industry in the world. Cleveland-Cliffs produces high-quality flat-rolled steel products with all stages of production occurring in the United States, from the mining of key raw materials through melting and finishing. In furtherance of Cleveland-Cliffs’ commitment to decarbonization, the Company has spent more than $1 billion since 2017 to build the world’s most technologically-advanced direct reduction plant in Toledo, Ohio. This plant produces hot briquetted iron that is 70% less CO2 intensive than imported metallics such as pig iron.

I wish to thank Secretary of Commerce, Gina Raimondo, and United States Trade Representative, Ambassador Katherine Tai, for negotiating a deal that respects the importance of maintaining strong Section 232 measures to the benefit of U.S. national and economic security.”

About Cleveland-Cliffs Inc.

Cleveland-Cliffs is the largest flat-rolled steel producer in North America. Founded in 1847 as a mine operator, Cliffs also is the largest manufacturer of iron ore pellets in North America. The Company is vertically integrated from mined raw materials and direct reduced iron to primary steelmaking and downstream finishing, stamping, tooling, and tubing. The Company serves a diverse range of markets due to its comprehensive offering of flat-rolled steel products and is the largest supplier of steel to the automotive industry in North America. Headquartered in Cleveland, Ohio, Cleveland-Cliffs employs approximately 25,000 people across its mining, steel and downstream manufacturing operations in the United States and Canada. For more information, visit www.clevelandcliffs.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20211030005021/en/

MEDIA CONTACT:

Patricia Persico

Director, Corporate Communications

(216) 694-5316

INVESTOR CONTACT:

James Kerr

Manager, Investor Relations

(216) 694-7719

Source: Cleveland-Cliffs Inc.

FAQ

What is the significance of the new Section 232 arrangement for Cleveland-Cliffs (CLF)?

The new Section 232 arrangement aims to protect Cleveland-Cliffs and the U.S. steel industry from increased imports, maintaining a competitive landscape.

How much has Cleveland-Cliffs invested in decarbonization efforts?

Cleveland-Cliffs has invested over $1 billion since 2017 in technologies aimed at reducing CO2 emissions.

Who is the CEO of Cleveland-Cliffs and what did he say about the new steel arrangement?

Lourenco Goncalves, the CEO of Cleveland-Cliffs, stated that the new arrangement is crucial for maintaining a level playing field for U.S. steel companies.