Japanese steel producer Nippon Steel Corporation has announced an additional project investment to be made at United States Steel's (US Steel) Mon Valley Works and Gary Works following the expected acquisition closure. The investments will extend the production life of the given assets and enhance the security of steel supply to the US manufacturers.
The company plans to replace and/or upgrade the existing hot strip mill and other facilities at Mon Valley with an investment of no less than $1 billion. With the given investment, Nippon Steel aims to enhance the competitiveness of Mon Valley Works, including increasing energy efficiency and improving product quality.
As for Gary Works, Nippon Steel will revamp blast furnace No.14 by investing approximately $300 million. Through revamping, the facility's operational life is expected to extend by up to 20 years.
The project investments are subject to the closing of the acquisition, which is expected in the second half of this year, and receipt of any necessary regulatory approvals.
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