Japanese steelmaker Nippon Steel will invest about $3 billion in upgrading the hot rolling mill at US Steel's Mon Valley Works in Pennsylvania, according to a report by Reuters citing Nikkei. The investment forms part of Nippon Steel's broader commitment to invest $11 billion in the development of US Steel by 2028. The commitment follows the completion of its acquisition of the American company in 2025.
Nippon Steel closed its $14.9 billion acquisition of US Steel more than a year ago, after 18 months of intense political and regulatory battles in Washington. The hot rolling equipment at Mon Valley, which is used to heat and roll steel slabs, has been in operation for about 90 years. The new state-of-the-art equipment is scheduled to be commissioned in the second half of 2029, which will allow the plant to produce much higher-quality steel.
Nippon Steel raised its profit forecast for fiscal year 2026 in August, citing higher earnings at US Steel and stable conditions in the global steel market. Over the summer, about 100 specialists seconded from Japan worked on 260 initiatives aimed at improving operations, applying the company's own technological know-how to increase production efficiency. Nippon Steel expects the US market to grow steadily thanks to import tariffs and sustained demand, a development that could boost the profits of its subsidiary US Steel above current forecasts.
The Japanese company has also announced plans to double steel production in the United States within three to five years. It intends to improve US Steel's product mix by offering advanced production technologies, including high-performance electrical steel sheet, which is used in particular in electric vehicle motors. Sources: Reuters (citing Nikkei), GMK Center (gmk.center).
Source: gmk.center