Mills
November 6, 2025
Final Thoughts: Nippon makes good on USS capex promises
Written by Laura Miller
Nippon Steel made some big investment promises throughout the lengthy and drawn-out process of acquiring – ahem, partnering with – U.S. Steel. Courting the approval of the United Steelworkers and lawmakers in a heavy presidential election year proved more difficult than anticipated.
Some thought Nippon’s promises were hollow. For others, it was much easier to trust the words of a Japanese business than, say, the US government.
Well, Nippon is now making good on those promises.
This week, the Tokyo- and Pittsburgh-based steelmakers jointly unveiled various capital investments totaling $14 billion that they are exploring and plan to make across U.S. Steel’s footprint.
These “transformational growth opportunities span multiple locations and strategic objectives,” according to a presentation outlining U.S. Steel’s medium-to-long-term management plan.
Among the investments are a long-awaited modernization of the ~87-year-old hot strip mill at USS Mon Valley Works in Pennsylvania, a direct-reduced iron (DRI) plant, and grain-oriented electrical steel production at the Big River Steel Works (BSR) in Arkansas.
Even being explored is a greenfield integrated steel mill. It would be the first blast furnace to be built in the United States in at least 45 years.
Mon Valley Works HSM
The companies plan to modernize the Edgar Thomson plant with a state-of-the-art conventional hot strip mill. They said this will improve coil quality and downstream efficiency, unlocking access to new markets.
U.S. Steel surprised many in 2021 when it abandoned previous plans to upgrade the ~87-year-old Mon Valley hot strip mill. It then shifted its focus to buy Big River Steel. This led to tension between the company and the union, as the USW represents workers at the integrated Mon Valley steelworks, but not at the BRS mini mill.
From the beginning, and despite the Japanese company promising to invest “no less than $1 billion” to replace and/or upgrade Mon Valley HSM, the USW opposed Nippon’s takeover of USS.
Well, the deal was finally finalized in June, despite the USW’s objections. So this revamped investment is finally some good news for the steelworkers and communities in the Mon Valley, just outside Pittsburgh.
DRI plant at BRS
Turns out U.S. Steel and Nippon are also exploring the construction of a DRI plant at BRS.
It’s not the first DRI facility being considered in the US. And I doubt it’s the last.
DRI would provide raw material flexibility and reduce carbon intensity at the Osceola, Ark., mega-mill, enabling low-cost, sustainable steelmaking.
USS goes for GOES
The companies also plan to expand electrical steelmaking capabilities at Big River. The EAF mill currently has a non-grain-oriented (NGO) electrical steel finishing line.
By introducing its technology expertise, Nippon plans to expand the mill’s production to also produce grain-oriented electrical steel (GOES).
Adding GOES to USS’ product mix would expand its market reach into high-performance metals for transformers and electrification applications.
A greenfield integrated steel mill in the USA. Wait, what?
In its outline of the strategic capital investment plan for its freshly acquired US operations, Nippon quietly mentioned a feasibility study for a new integrated steel mill.
A greenfield mill, as outlined by Nippon, would mark the first blast furnace constructed in the US since 1980.
Today, there are only 12 blast furnaces in operation in the US, according to SMU’s Blast Furnace Status Table. Three additional BFs are currently idled.
A few years ago, building a new BF might’ve been a hard sell. But in today’s political and business environment, it could actually be a real potential.
Capital investment objectives
The projects mentioned above are just a handful of the capital investment opportunities management outlined in the growth plan for U.S. Steel.
Other previously announced projects include a reline of the No. 14 blast furnace and an HSM upgrade at Gary Works, a slag recycling project at the Edgar Thomson plant, and a new threading line at the Fairfield seamless tube operations.
Nippon is further exploring the upgrade of USS’ tubular facilities and expanding high-value tubular capabilities.
The following slides outline the growth plans for the Pittsburgh-based flat-rolled steel producer. The full presentations can be accessed here and here.
Nippon’s true intentions for the US steel market are being revealed. It already bet big with U.S. Steel’s nearly $14-billion purchase price. Now it’s doubling down on that bet, set to inject another $14 billion into the Pittsburgh-based steelmaker.
A Japanese company taking over the iconic American steelmaker at first glance might not seem like ‘America First.’ But with Nippon’s massive investments set to transform the United States Steel Corp., it appears to be a big win for USS steelworkers and their communities.
You don’t wanna miss this
U.S. Steel’s Dan Brown will be speaking at the upcoming Tampa Steel Conference. Brown leads advanced steelmaking technology at USS and is also the chief operating officer of BRS. Join us Feb. 11-13 in Tampa to hear the latest on the exciting happenings of the recharged U.S. Steel.
For more information about the event and to register, please visit the Tampa Steel Conference website.
We hope to see you in the Florida sunshine in February!
In the meantime, we appreciate your continued support of Steel Market Update.
