Japan's Nippon Steel will invest at least an additional $1.3 billion to modernize two steel plants owned by US Steel as part of its expected acquisition of the American steelmaker. This was reported by the press service of the Japanese company, reports SBB Daily Briefing.
So, at the plant in Mon Valley, the existing hot rolling facility and other facilities will be replaced or modernized at a cost of at least one billion US dollars.
For the second Gary Works, Nippon Steel said it will invest about $300 million to upgrade blast furnace No. 14, which is expected to extend the life of the plant by 20 years.
"Investment announced are major growth investments and represent additional capital expenditures that will extend the life of US Steel's two critical integrated assets and improve the security of steel supply to US producers," Nippon Steel said.
The investment will be made upon completion of the acquisition of US Steel.
Nippon Steel confirmed that it expects to close the agreement to acquire US Steel in the second half of 2024, "subject to the satisfaction of other customary closing conditions, including including obtaining the necessary permits from American regulators."
Recall that Nippon Steel announced its plans to take over US Steel in December 2023.
