The fresh capital injection will target two U.S. Steel plants, supplementing the about 200 billion yen investment Nippon Steel had previously committed. Roughly 145 billion yen will be allocated to modernize Mon Valley Works in Pennsylvania, enhancing its capacity to produce high-grade automotive steel and create new jobs.
The remaining some 45 billion yen will be used to upgrade the blast furnace at Gary Works in Indiana, potentially extending its operational lifespan by up to two decades. These investments are seen as strategic moves to address concerns about job security and the future of American steel production.
"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," Nippon Steel vice chairman Takahiro Mori said in a statement.
Nippon Steel, which proposed some 2 trillion yen acquisition of U.S. Steel in December 2023, aims to expand its presence in the United States, where steel demand is projected to grow. However, the deal faces significant hurdles, including opposition from labor unions and political figures in the run-up to the November presidential election.
