Nippon plans growth after completion of steel production agreement with the United States
Nippon Steel has announced plans to increase its steelmaking capacity in the United States following the completion of the long-awaited takeover of US Steel.
According to worldsteel, in 2024, Nippon was the fourth largest steel producer in the world, producing 43.64 million tons of crude steel. Last year, the United States produced 14.18 million tons of steel. However, the planned increase in production capacity can now increase the joint annual production volume of the two companies to 86 million tons.
A joint statement released by Nippon and US Steel on June 18 announced the conclusion of a deal worth 14.1 billion US dollars. The deal was finalized five months after President Joe Biden blocked the deal on national security grounds.
- This article was first published in the journal of MEPs International Steel Review. The monthly report provides subscribers with information on steel prices, indexes, market commentary, and forecasts from key global steel markets. Contact the members of the European Parliament for detailed information on how to sign up.
Both President Biden and President Donald Trump spoke out against the takeover of the Japanese company US Steel during the presidential election campaigns. However, President Trump later ordered a second investigation by the Committee on Foreign Investment in the United States and eventually gave his approval after Japan agreed to sign a national security agreement before completing its acquisition.
Japan National Security Agreement
The deal, which is expected to "protect and create" 100,000 jobs, includes a commitment to invest USD11bn in U.
S. steel by 2028 and develop a project from scratch after 2028.
Japan will allow us steel headquarters to remain in Pittsburgh, Pennsylvania, and that the majority of the company's management and board, including its chief executive, are U.
S. citizens. Additionally, the "golden share" in the new Nippon North American run operation will allow the U.
S. president to intervene in the event of any planned reduction in capacity or attempts at offshore production.
The value of Nippon capturing US steel has increased since December 2023, when it first entered into a final agreement to purchase the company. Now, this is not only helping the Japanese steel producer in its quest to increase the share of overseas steel production to about 60% (from about 28%), but also in President Trump's goal of increasing steel production
A study by MEPs indicates that uncertainty in the market has slowed steel purchases in the United States this month, which has led to