Nippon Steel, which acquired the American steel company US Steel, will invest 4 billion dollars (approximately 5.548 trillion won) to build a new steel mill in the United States, Nikkei reported on August 29.
Nippon Steel plans to construct a new electric arc furnace steel mill with the goal of starting operations in 2029. The plant will consist of two large-scale electric arc furnaces, which are more efficient and environmentally friendly compared to blast furnaces, and is expected to produce 3 million tons of steel products annually.
The company plans to select a site in the first half of next year, but the exact location for the new steel mill has not yet been finalized. Takahiro Mori, Vice Chairman of Nippon Steel and Chairman of the Board at US Steel, told Nikkei, "We have already received inquiries from several states, and we will make a final decision after reviewing site conditions and the labor force."
The company expects that this investment will enhance the competitiveness of US Steel, which has been struggling with poor performance, and also contribute to strengthening the US manufacturing base and creating jobs, as requested by US President Donald Trump.
US Steel, once the world's leading steel company and a symbol of American industry, lost ground in competition and was sold to Nippon Steel in June. US Steel's net profit last year dropped by 57% year-on-year to 384 million dollars.
Nippon Steel has been persuading the US government, which opposed the sale of US Steel, by promising large-scale investments and job creation, and has set a goal to restore US Steel's competitiveness and return it to its position as the largest steel company in the United States.
Nippon Steel also recently announced plans to invest 3.1 billion dollars next year in maintenance work for US Steel's largest blast furnace and related facilities at the Gary plant in Indiana.
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