USS maps $14B growth plan as Nippon integration takes hold

U.S. Steel has unveiled more details of a multi-year growth plan in partnership with Nippon Steel.

The plan includes $14 billion in capital investments across the Pittsburgh-based steelmaker’s facilities. Of that, $11 billion is slated for investment by the end of 2028. Nippon Steel agreed to invest $11 billion to modernize USS operations as a condition for acquiring the iconic American producer earlier this year.

“Our technology and investment are anchored in revitalizing, enhancing and expanding U. S. Steel facilities,” commented Takahiro Mori, Nippon Steel’s representative director and chairman of the U.S. Steel board.

The companies aim to unlock roughly $3 billion in value, including $2.5 billion in incremental run-rate EBITDA from capital projects and $500 million from operational efficiencies.

USS CEO David Burritt called the plan a “once-in-a-generation opportunity” to combine Nippon Steel’s world-class technology with U.S. Steel’s American manufacturing base.

“U. S. Steel has established strong momentum across critical initiatives during its first few months in partnership with Nippon Steel and is executing with urgency and discipline,” the company reported.

The companies have identified over 200 initiatives to improve performance across all USS business segments.

Early projects include the previously announced $200-million modernization of the hot strip mill at Gary Works in Indiana and a new slag recycler at the Edgar Thomson Plant, part of Mon Valley Works in Pennsylvania. A $75-million upgrade at the Fairfield Tubular Operations in Alabama was also announced this week.

Other opportunities being explored include the modernization of the Mon Valley hot strip mill, the construction of a DRI plant at Big River, the addition of GOES production at Big River, and even a greenfield integrated steel mill. Check out today’s Final Thoughts for more info.

To date, Nippon Steel has deployed ~50 professionals across U.S. Steel sites. “The partnership has fostered a high-performing, integrated team committed to execution, operational excellence, and unlocking operational efficiencies to drive long-term value,” the company said in a statement on Tuesday.

Laura Miller

Laura Miller is a reporter and editor for Steel Market Update. She has held various editorial positions with steel industry publications, associations, and mills since 2007. She joined the SMU team in 2022. She is a member of the Association of Women in the Metal Industries and a past-president of the AWMI Pittsburgh Chapter. She holds a BA in Latin American Studies from Edinboro University of Pennsylvania.