U. S. Steel Makes Strategic Investment in Pittsburgh-Based Autonomous Warehousing Pioneer -- Freespace Robotics

Rhea-AI Summary

United States Steel Corporation (NYSE: X) invests in Freespace Robotics, a Pittsburgh-based manufacturer of robotic storage systems, to support innovation and the regional economy. Freespace's autonomous storage system aims to revolutionize goods storage and retrieval, with U.S. Steel backing its growth plans and local talent recruitment.

Insights

Market Research Analyst

The strategic investment by U.S. Steel in Freespace Robotics is a significant move within the warehouse automation market, which is set to experience substantial growth. The integration of robotic storage and retrieval systems in warehouses is a transformative trend, aiming to enhance efficiency and productivity. This investment not only strengthens U.S. Steel's position in an innovative sector but also highlights the company's commitment to regional economic development and job creation.

From a market perspective, the alignment with Freespace Robotics places U.S. Steel at the forefront of a burgeoning industry. The expected growth rate of over 15% CAGR through 2028 for the warehouse automation market in the U.S. indicates a robust demand for such technologies. By investing in a company that produces cutting-edge autonomous storage systems, U.S. Steel is positioning itself to potentially capitalize on this market expansion. Moreover, the association with Carnegie Foundry and NREC emphasizes a strategic focus on advanced technology solutions.

Financial Analyst

U.S. Steel's investment in Freespace Robotics is a strategic deployment of capital that could diversify the company’s revenue streams and mitigate risks associated with its traditional core business. The investment is a forward-looking move, potentially offering U.S. Steel a stake in the high-growth robotics and automation industry. The decision to invest in a company that is scaling up and executing on pilot programs could yield high returns if Freespace Robotics captures a significant share of the projected $44B global market by 2028.

Investors should note that the terms of the deal were not disclosed, which limits the ability to fully assess the financial implications of this investment. However, the appointment of U.S. Steel's Director of Strategy & Corporate Development to the Freespace Robotics Board suggests an active role in shaping the company's strategic direction, potentially enhancing the value of the investment over time.

Supply Chain Analyst

Automated storage and retrieval systems are revolutionizing supply chain management by improving speed, accuracy and efficiency in warehousing and logistics operations. Freespace Robotics' innovative approach to handling multiple sizes of goods and single-action storage and retrieval is particularly noteworthy. Such advancements are likely to offer competitive advantages in terms of warehouse space optimization and labor cost reductions.

The technology's potential to contribute to a more robust and resilient supply chain aligns with current industry priorities, especially in the context of recent global supply chain disruptions. U.S. Steel's investment can be seen as a strategic move to support the development of supply chain solutions that are not only advanced but also adaptive to the dynamic demands of e-commerce and logistics.

Company incubated in Carnegie Foundry, a Pittsburgh-based partner of Carnegie Mellon University

PITTSBURGH--(BUSINESS WIRE)-- United States Steel Corporation (NYSE: X) (“U. S. Steel”) today announced a strategic investment in Pittsburgh-based Freespace Robotics, a pioneering manufacturer of robotic storage and retrieval systems that are in demand by warehouses worldwide. This investment will help Freespace hire and retain local talent as well as recruit others into the region.

"Investing in Freespace Robotics is another way we’re promoting innovation while supporting the regional economy and its workforce,” said Christian Gianni, U. S. Steel Senior Vice President & Chief Technology Officer. "Given Freespace’s ambitious growth plan rooted right here in our hometown, this investment also underscores how we’re doubling down on the region because we believe in its potential to be a force for innovation in the U.S. and beyond.”

Freespace Robotics manufactures an autonomous storage system that leverages robots to store and retrieve goods in ways that are new to market. For example, its robots can handle multiple goods at once, more sizes of goods, and can store and retrieve goods in a single action. The company will use U. S. Steel’s investment to execute on pilot programs, establish its manufacturing presence in the region and scale up its team.

Automated storage and retrieval systems are used for warehousing, retail, and logistics; from the largest of distribution centers to regional centers, and micro-fulfillment and back of store for ecommerce. The warehouse automation market in the U.S. alone is expected to grow at a Compounded Annual Growth Rate of over 15% through 2028 and become a $44B market globally by 2028. [source: LogisticsIQ]

“This region has a long history of industrial innovation through advances in hardware and large-scale equipment,” said Freespace Robotics CEO Dr. Robert J. Szczerba. “U. S. Steel knows first-hand the importance of creating an innovation pipeline for themselves and the additional value of doing so in its hometown with hometown talent.”

“The Freespace Robotics team are clear leaders and innovators. These highly advanced technologies will be essential for a robust, resilient, and more efficient supply chain,” added Gianni.

Freespace Robotics is a portfolio company from Carnegie Foundry, a Robotics and AI venture studio headquartered in Pittsburgh that partners with the world leader in autonomous robotics – the National Robotics Engineering Center (NREC) at Carnegie Mellon University – to build its technologically advanced solutions. NREC combines expertise from decades of applied R&D work in autonomy with highly strategic, corporate and public sector partners to bring multi-use technology solutions to market. U. S Steel is also an anchor investor of Carnegie Foundry.

As part of this investment, U. S. Steel’s Director of Strategy & Corporate Development, Jim Cook, will join the Freespace Robotics Board of Directors. Additional terms of the deal were not disclosed.

About U. S. Steel

Founded in 1901, United States Steel Corporation is a leading steel producer. With an unwavering focus on safety, the Company’s customer-centric Best for All^® strategy is advancing a more secure, sustainable future for U. S. Steel and its stakeholders. With a renewed emphasis on innovation, U. S. Steel serves the automotive, construction, appliance, energy, containers, and packaging industries with high value-added steel products such as U. S. Steel’s proprietary XG3^® advanced high-strength steel. The Company also maintains competitively advantaged iron ore production and has an annual raw steelmaking capability of 22.4 million net tons. U. S. Steel is headquartered in Pittsburgh, Pennsylvania, with world-class operations across the United States and in Central Europe. For more information, please visit www.ussteel.com.

About Freespace Robotics

Freespace Robotics is a warehouse automation company with a reimagining of Automated Storage and Retrieval Systems (AS/RS) that are space efficient and high-speed; capable of high-volume movement of goods, in nearly any size, shape, and temperature environment. We are a robotic automation and AI company laser-focused on delivering unimagined advances in order-fulfillment and movement of goods. Freespace Robotics is based, rooted, and embedded in Pittsburgh, where industrial innovation and AI is bred, deployed and acquired. To learn more about Freespace Robotics, please visit www.freespacerobotics.com.

Inquiries:
Investment: Matthew B. Wachter, matt@freespacerobotics.com
Pilot / Sales: Karl Sanchack, ksanchack@freespacerobotics.com

About Carnegie Foundry

Carnegie Foundry is a unique Robotics and AI venture studio, headquartered in Pittsburgh, PA. In partnership with the world leader in autonomous robotics and AI - the National Robotics Engineering Center (NREC) at Carnegie Mellon University – we develop, mature and spin out companies that commercialize cutting-edge intellectual property and advanced prototypes, already market tested and primed for new and expanded applications. For more information visit www.carnegiefoundry.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240310404334/en/

Corporate Communications

T – (412) 433-1300

E – media@uss.com

Emily Chieng

Investor Relations Officer

T – (412) 618-9554

E – ecchieng@uss.com

Source: United States Steel Corporation

FAQ

What company made a strategic investment in Freespace Robotics?

United States Steel Corporation (NYSE: X)

What does Freespace Robotics specialize in manufacturing?

Robotic storage and retrieval systems

How will U. S. Steel's investment benefit Freespace Robotics?

It will help Freespace hire and retain local talent, recruit others into the region, execute pilot programs, establish manufacturing presence, and scale up its team.

What market segment does Freespace Robotics target with its products?

Warehousing, retail, and logistics

What growth rate is the warehouse automation market in the U.S. expected to achieve through 2028?

Over 15%