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Japan’s Nippon Steel Corp. proposed making additional project investments to be made at Mon Valley Works and Gary Works as part of its pending acquisition of United States Steel.

The investments are major growth investments and represent additional capital spending that will extend the production life of two of U.S. Steel’s integrated assets and enhance the security of steel supply to American manufacturers, the company said. The investments will require significant expenditures beyond calendar year 2026 and are incremental to the $1.4 billion capital commitment previously announced by Nippon Steel, which will be allocated towards maintenance and other necessary capital investments in the existing BLA-covered facilities.

At Mon Valley Works, Nippon will replace or upgrade the existing hot strip mill and other facilities at Mon Valley. Nippon Steel will invest no less than $1 billion to enhance the competitiveness of the Mon Valley Works, including improving yield, increasing energy efficiency, improving product quality and enhancing overall operating effectiveness. Nippon Steel plans to ensure Mon Valley Works operates for decades to come and will undertake the necessary investments so that it remains viable and provides jobs for future generations of steelworkers in Pennsylvania.  

At Gary, Nippon plans to revamp the No. 14 blast furnace, which is expected to extend the furnace’s life by up to 20 years. Revamping Blast Furnace No. 14 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.

“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. The investments 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,” said Nippon Steel Representative Director and Vice Chairman Takahiro Mori.

The United Steelworkers, who have voiced strong objections to the acquisition, did not change their tone in response. “Nippon talks a big game, but at the end of the day, a press release is not a contract. Even as it pays lip service to one of the union’s ongoing concerns, Nippon continues to duck the USW’s input,” said a letter from District 7 Director and International President David McCall.