Nippon Steel Commited Additional Investment in U.S. Steel Mills

Nippon Steel will invest $1 billion in Mon Valley Works towards upgrading the facilities to boost production of high-grade steel for cars.

SEATTLE (Scrap Monster): Nippon Steel Corporation announced plans to make additional investments to the tune of $1.3 billion in United States Steel Corporation (U.S. Steel) mills. The move is considered part of the Japanese steelmaker’s efforts to secure support of the union, amidst opposition to the deal by the U.S. administration.

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The statement issued by the company said that the proposed investment is part of its pending 14.1 billion acquisition of U.S. Steel announced in December last year. The planned investments at the Mon Valley Works and Gary Works is in addition to the already committed investment of $1.4 billion.

Nippon Steel will invest $1 billion in Mon Valley Works towards upgrading the facilities to boost production of high-grade steel for cars. This will improve the plant’s competitiveness and create more jobs. The remaining $300 million will be spent to revamp the blast furnace at Gary Works, Indiana facility, which in turn will extend the facility’s operational life by up to 20 years.

Both the above investments are subject to closing of the acquisition transaction and receipt of necessary regulatory approvals. Also, further engineering studies need to be carried out to finalize detailed design and specification of the projects, said the company.

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