USX Corporation
USX Corporation, more commonly known as U.S. Steel or the United States Steel Corporation, is the largest domestically-owned integrated steel producer in the United States (though it also has operations in Canada and Central Europe). Headquartered in Pittsburgh, Pennsylvania, the company produces a wide variety of sheet and tubular steel products for use in a number of different industries including construction, automotive, industrial machinery, oil and gas, appliance, and container.
U.S. Steel was founded in 1901 by J.P. Morgan and Elbert H. Gary. The two men purchased Andrew Carnegie's steel company and merged it with Federal Steel Company, in which they already had an interest. The result was the new U.S. Steel Company. The company included National Tube Company, American Steel & Wire Co., American Sheet Steel Co., American Tin Plate Co. and American Steel Hoop Co. The new venture was an instant success, with the company producing about two-thirds of all the steel manufactured in the U.S. during its first year of business.
Through the decades that followed, numerous acquisitions and consolidations occurred and U.S. Steel remained a powerful force in the steel industry. During World War II, the company employed more than 340,000 Americans in the building of ships and production of steel for the war effort. The company reached its peak, however, in 1953, when it produced 35 million tons of steel that year.
Unfortunately, foreign steel came into the picture in the late 1970s and 1980s. The company lost nearly $300 million in 1979 and closed 13 of its facilities at that time. However, thanks to diversification in 1983 and the purchase of Marathon Oil, the company continued to prosper, though steel's contribution to company sales was only about 40 percent. By the 90s, foreign competition began having a huge effect on the company and more steel works were closed or reduced in size.
This didn't cause USX to file bankruptcy as was the case with many steel companies. Instead, with further acquisitions during the first decade of the 21st century, U.S. Steel Corporation remains strong.
USX Corporation and Asbestos
U.S. Steel was a major employer in many U.S. cities for decades, and entire towns were built around their facilities. For example, the town of Fairless Hills, Pennsylvania was constructed specifically to house the several thousand workers who were employed at the company's Fairless Works in suburban Philadelphia. Many people depended on U.S. Steel for a paycheck and were delighted that they could make such a good living in such an important industry, living in relative comfort thanks to their healthy salary.
However, what workers didn't know was that many of the materials and chemicals used inside a steel-making plant were toxic. One of the most hazardous was asbestos. Inside their many facilities, USX Corporation used asbestos insulation to protect workers from injury caused by high-temperature equipment and processes used in the production of steel. Because temperatures sometimes reached up to 3,000 degrees, ovens, furnaces, tanks, boilers, and a variety of other pieces of equipment or machinery were lined with asbestos. In addition, workers were often required to wear clothing made of asbestos to protect them from burns. Asbestos aprons, pants, lab coats, gloves, and even masks were commonplace and put workers in direct danger in regards to inhalation of hazardous asbestos fibers.
USX Corporation and Asbestos Litigation
During the peak of asbestos use, namely the 1940s through the 1970s, USX employees thought nothing of handling this material. Workers were never told that the mineral could be hazardous to their health, though evidence exists which demonstrates that company executives were more than aware that it was asbestos that was causing the myriad lung problems workers were experiencing. When the truth was finally exposed in the late 1970s, employees were angry and many began to seek legal advice.
According to records, by 2003, U.S. Steel had nearly 15,000 active asbestos claims outstanding against the company and had already paid about $15 million in settlements. That same year, however, USX faced a major loss in the case of a 70-year-old retired worker from its Gary, Indiana plant. Roby Whittington, a mesothelioma victim who had worked for the company for more than 30 years, was awarded a sum of $250 million by the courts, the largest to a single plaintiff in a U.S. asbestos case. The company was stunned.
By the end of 2005, the total number of asbestos lawsuits filed against USX numbered about 14,000. These claims were filed not only by employees, including former shipyard workers, but also by those who were allegedly exposed to products manufactured by U.S. Steel. Though the number of cases has declined over the last several years, U.S. Steel still faces a significant asbestos litigation and continues to settle some cases out of court and allow others to go to trial. Management claims, however, that these matters "will not have a material adverse effect on the Company's financial condition."
Resources for Metal Workers
Metal workers who were employed during the era of asbestos use remain at high risk for developing mesothelioma. Hence, it's essential for those who fit into this category to be diligent about monitoring their health, even though asbestos exposure occurred decades ago.
The particulars of asbestos exposure and dealing with an asbestos-related disease can be confusing, but help is available through our Patient Advocates who may be reached at (800) 615-2270. You may also fill out the form on this page for more information.
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