U.S. Steel Headquarters No Longer Coming To Former Civic Arena Site
PITTSBURGH (KDKA) -- U.S. Steel no longer plans to build their new world headquarters on the site of the old Civic Arena.
U.S. Steel CEO Mario Longhi announced the decision Thursday morning as first reported by the Pittsburgh Business Times.
A new site for the headquarters has not been announced.
The 5-story, 285-thousand square foot building was to be the centerpiece of the redevelopment.
For now, the company will remain in its current location at the U.S. Steel Tower.
"US Steel is staying where they've been for decades," said Allegheny County Executive Rich Fitzgerald. "They're in the US Steel building, they decided to hit the pause button."
The Pittsburgh Penguins own redevelopment rights for the site and Chief Operating Officer Travis Williams tells NewsRadio 1020 KDKA he's not totally surprised.
Williams says they have had conversations with other potential parties interested in building on the site.
"Given their financial struggles they're having in their industry, it's not surprising to us," Williams said. "We anticipated this may happen, and therefore, we've been looking at other alternatives and other options for the project."
For the arena project, Fitzerald said: "We'll ultimately be able to still attract other great high-profile companies to come here and put their headquarters or office building on this site."
Pittsburgh Mayor Bill Peduto and Fitzgerald released the following statement Thursday afternoon in response to U.S. Steel's decision:
"While we're sorry to hear of the decision by U.S. Steel, this is simply a pause button in the commercial development of the 28-acre site. We are still moving forward with housing as originally planned, and there is continued interest in the commercial development as it remains one the of the most desirable sites in all of Western Pennsylvania."
This week, U.S. Steel announced a $173 million loss for the third quarter with sales down 38 percent.
"You've got China, you've got South America, you've got Asia, you've got Europe. It's being dumped all over. The strength of the dollar certainly impacts that," said Fitzgerald.
A source also told the Pittsburgh Business Times that the possible sale of the Penguins was considered in the decision.
Meanwhile, plans for 1,100 apartments on the redevelopment site are still a go. Construction begins next summer.
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