Key Points
- US Steel announced a multi-billion-dollar growth plan with its new owner, Nippon Steel.
- Nippon Steel will invest $11 billion by the end of 2028 to modernize U.S. Steel’s facilities.
- The plan aims to achieve $3 billion in total savings through capital investments and operational efficiencies.
- The plan is intended to “protect and create” over 100,000 U.S. jobs, though specifics were not provided.
On Tuesday, United States Steel laid out its multi-billion-dollar, multi-year growth plan with its new owner, Nippon Steel. The plan focuses on modernizing the century-old steelmaker.
This announcement comes just five months after Nippon Steel completed its “historic partnership” with the Pittsburgh-based steel company in a deal worth nearly $15 billion. That deal included a “golden share” provision, which gives the U.S. federal government the power to appoint a board member and have a say in some of the company’s decisions.
The merger created the world’s fourth-largest steelmaker, and Nippon Steel agreed to invest $11 billion to upgrade U.S. Steel’s facilities.
On Tuesday, the company said it will make these investments by the end of 2028. The plan aims to achieve $2.5 billion in savings from these capital investments and an additional $500 million from improved operational efficiencies.
U.S. Steel says it has identified more than 200 initiatives to save money across all of its business segments. Nearly 50 professionals from Nippon Steel are supporting these efforts. The company is modernizing and expanding its manufacturing operations and also boosting its research and development to produce “higher value, lower emission steel.”
CEO Dave Burritt said, “We have a robust pipeline of growth projects, ranging from the modernization of our Gary (Indiana) Works Hot Strip Mill to the new slag recycler at Mon Valley Works (Pennsylvania) and the development of new product capabilities.”
The company stated that the plan is designed to “protect and create more than 100,000 jobs nationwide in the United States,” but did not provide any further details on job creation.
