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Reuters file photo Nippon Steel Corp.’s logo at the company’s headquarters in Tokyo on April 1.
Jiji Press
17:44 JST, August 29, 2024
Tokyo, Aug. 29 (Jiji Press) — Nippon Steel Corp. plans to invest an additional $1.3 billion in United States Steel Corp., the Japanese steelmaker said Thursday.
If the planned acquisition of U.S. Steel goes through, Nippon Steel will invest in U.S. Steel’s Mon Valley Works in the U.S. state of Pennsylvania and Gary Works in Indiana, in addition to its investment of $1.4 billion by 2026 pledged by the company to the United Steelworkers, or USW, labor union.
Nippon Steel will invest at least $1 billion to replace or upgrade hot strip mills at Mon Valley Works, while around $300 million will be spent on the No. 14 blast furnace at Gary Works to extend its operational life by up to 20 years.
While Nippon Steel’s buyout of U.S. Steel has been agreed by both companies, the USW is vehemently against the deal.
Through the additional investments, Nippon Steel hopes to gain more understanding for the transaction, given that both the Democrats and Republicans have voiced opposition ahead of the U.S. presidential election in November.
Nippon Steel initially planned to complete the acquisition in September, but it decided to delay the deal to December.
