Nippon Steel, Japan’s largest steelmaker, announced plans for an additional investment of approximately $1.3 billion in U.S. Steel’s mills as part of its ongoing acquisition process. This new investment comes on top of the previously pledged $1.4 billion through 2026 aimed at enhancing U.S. Steel’s operations.
The fresh investment will allocate at least $1 billion to boost high-grade steel production capacity at the Mon Valley Works in Pennsylvania and $0.3 billion for upgrades at the Gary Works in Indiana. This commitment reflects Nippon Steel’s strategy to modernize and extend the operational lifespan of U.S. Steel’s facilities.
Nippon Steel’s $14.9 billion acquisition of U.S. Steel, finalized in December, is progressing, having received regulatory approvals outside the U.S. However, the deal faces political challenges and scrutiny from U.S. regulators, alongside concerns from the United Steelworkers union regarding potential job losses.
The investments are contingent upon the successful closing of the acquisition and any necessary regulatory approvals. Nippon Steel anticipates the transaction to be finalized in the second half of 2024.