Japanese owned Nippon Steel Corp. is pushing the boat out to impress the United Steelworkers union by announcing an additional US$1.3B investment in US mills owned by United States Steel Corp. as part of its strategy to gain support from workers and politicians for its acquisition of the Pittsburgh-based steelmaker.
To address concerns about job security at plants using traditional blast-furnace production from iron ore, Nippon Steel plans to invest in the Mon Valley and Gary Works facilities. This investment is part of its ongoing US$14.1B takeover of US Steel. teFollowing the announcement, US Steel’s shares rose on Thursday.
The company will invest no less than US$1B to enhance the competitiveness of the Mon Valley Works, including improving yield, increasing energy efficiency, improving product quality, and enhancing overall operating effectiveness. Nippon also 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.
Nippon also announced it would invest an additional US$1.3B is in addition to the previously announced US$1.4B.
“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,” the company stated on Wednesday.
Additionally, the company has committed US$300M to revamp blast furnace No. 14 at Gary Works in Gary, Indiana.
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