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Nippon Steel Promises Additional Investment in Mon Valley, Gary Works
08/29/2024 - Nippon Steel Corp. plans to invest an additional US$1.3 billion, if not more, in United States Steel Corporation’s Mon Valley and Gary works, should it finalize its acquisition of the iconic American steelmaker.
Nippon Steel said the investment, which would be in addition to the US$1.4 billion it has already pledged, will extend the production life of two of U. S. Steel’s critical integrated assets and enhance the security of steel supply to American manufacturers.
At Mon Valley, Nippon would spend at least US$1 billion to either upgrade or replace the existing hot strip mill and other facilities, with an eye to including improving yield, increasing energy efficiency, improving product quality, and enhancing overall operating effectiveness.
“Nippon Steel believes that a transformed Mon Valley Works will expand U. S. Steel’s ability to serve a broader range of markets and customers, create additional high-grade steel capabilities, strengthen the competitive positioning of Mon Valley’s blast furnace operations, and secure American steel supply.”
At Gary Works, Nippon would invest approximately US$300 million to revamp the No. 14 blast furnace, extending its operational life by up to 20 years.
“Revamping the No. 14 blast furnace will also allow U. S. Steel to realize significant operational benefits, while customers will benefit from the continuation of environmentally friendly blast furnace production at Gary Works as well as from Nippon Steel’s world-leading capabilities for automotive flat steel.”
Additionally, Nippon Steel said it continues to see numerous opportunities for technology transfer to U. S. Steel following the closing of the transaction to reduce the environmental footprint and extend the longevity of the United Steelworkers-represented facilities.
“From the outset, we have been clear in our admiration for the entire U. S. Steel portfolio and our desire to provide investment and technical expertise to protect and grow U. S. Steel as one of the world’s best steelmakers with world-leading capabilities,” said Nippon Steel representative director and vice chairman Takahiro Mori.
“The investments announced today will help make U. S. Steel’s blast furnace facilities more productive and environmentally sustainable as we seek to provide the highest-quality American-made steel products to American customers, fueled by American workers, while also securing American steel supply for the future. We are excited to build upon the strong steelmaking legacy in the Mon Valley and Gary for the benefit of all stakeholders and the American steel industry for generations to come.”
At Mon Valley, Nippon would spend at least US$1 billion to either upgrade or replace the existing hot strip mill and other facilities, with an eye to including improving yield, increasing energy efficiency, improving product quality, and enhancing overall operating effectiveness.
“Nippon Steel believes that a transformed Mon Valley Works will expand U. S. Steel’s ability to serve a broader range of markets and customers, create additional high-grade steel capabilities, strengthen the competitive positioning of Mon Valley’s blast furnace operations, and secure American steel supply.”
At Gary Works, Nippon would invest approximately US$300 million to revamp the No. 14 blast furnace, extending its operational life by up to 20 years.
“Revamping the No. 14 blast furnace will also allow U. S. Steel to realize significant operational benefits, while customers will benefit from the continuation of environmentally friendly blast furnace production at Gary Works as well as from Nippon Steel’s world-leading capabilities for automotive flat steel.”
Additionally, Nippon Steel said it continues to see numerous opportunities for technology transfer to U. S. Steel following the closing of the transaction to reduce the environmental footprint and extend the longevity of the United Steelworkers-represented facilities.
“From the outset, we have been clear in our admiration for the entire U. S. Steel portfolio and our desire to provide investment and technical expertise to protect and grow U. S. Steel as one of the world’s best steelmakers with world-leading capabilities,” said Nippon Steel representative director and vice chairman Takahiro Mori.
“The investments announced today will help make U. S. Steel’s blast furnace facilities more productive and environmentally sustainable as we seek to provide the highest-quality American-made steel products to American customers, fueled by American workers, while also securing American steel supply for the future. We are excited to build upon the strong steelmaking legacy in the Mon Valley and Gary for the benefit of all stakeholders and the American steel industry for generations to come.”
