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U.S. Steel, Government Reach Agreement on Midwest Plant Case

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United States Steel Corporation X announced that an agreement has been filed in the Hammond Division of the United States District Court for the Northern District of Indiana between the company and the federal and the state governments for resolving water violations with respect to its Midwest Plant in Portage, IN.

Per the Consent Decree setting forth the terms of agreement, the company’s Midwest Plant will take substantial actions to lessen the possibility for reoccurrence of similar incidents at the facility and also improve its operations. U.S. Steel will comply with the outlined set of deliverables mentioned in the agreement. This will not only safeguard the community and shared natural resources but will also ensure that the commitment made to federal and state agencies is fulfilled.

U.S. Steel is taking several steps to improve its environmental standards. This includes implementing new spill notification procedures, installing a new wastewater piping system and finishing containment trench repairs, redeveloping its comprehensive wastewater operations and maintenance plan.

The company is also implementing a more comprehensive Preventive Maintenance Program Plan and evaluating and identifying enhanced wastewater monitoring systems that are available and will promote early detection and alert any potential incidents.

U.S. Steel stated that it is continuously seeking opportunities to improve its environmental compliance program and will also apply the lessons learned from this experience to the future operations.

Shares of U.S. Steel have lost 9.6% in the past three months, underperforming the industry’s roughly 7.2% decline.

Zacks Rank & Stocks to Consider

U.S. Steel currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks worth considering in the basic materials space are LyondellBasell Industries N.V. LYB, CF Industries Holdings, Inc. CF and Daqo New Energy Corp. DQ, each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

LyondellBasell has an expected long-term earnings growth rate of 9%. Its shares have moved up 14.3% over a year.

CF Industries has an expected long-term earnings growth rate of 6%. Its shares have gained 25.3% over a year.

Daqo New Energy has an expected long-term earnings growth rate of 7%. Its shares have rallied 162.5% over a year.

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