TOKYO, Aug. 28,
2024 /PRNewswire/ -- Nippon Steel Corporation
("Nippon Steel") (TSE: 5401) today announced additional project
investments to be made at Mon Valley Works and Gary Works, as part
of its pending acquisition ("Transaction") of United States Steel
Corporation ("U. S. Steel") (NYSE: X).
The investments announced today are major growth investments and
represent additional capital spending that will extend the
production life of two of U. S. Steel's critical integrated assets
and enhance the security of steel supply to American manufacturers.
The investments will require significant expenditures beyond
calendar year 2026 and are incremental to the $1.4 billion capital commitment previously
announced by Nippon Steel, which will be allocated towards
maintenance and other necessary capital investments in the existing
BLA-covered facilities.
The details of the announced investments are as follows:
- Mon Valley Works – Replace and/or Upgrade
the Existing Hot Strip Mill and Other Facilities at Mon Valley:
Nippon Steel will invest no less than $1
billion to enhance the competitiveness of the Mon Valley
Works, including improving yield, increasing energy efficiency,
improving product quality, and enhancing overall operating
effectiveness. 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. As part of that commitment and
following the closing of the Transaction, Nippon Steel will replace
and/or upgrade the existing hot strip mill at Mon Valley Works and
other facilities. Nippon Steel believes that a transformed Mon
Valley Works will expand U. S. Steel's ability to serve a broader
range of markets and customers, create additional high-grade steel
capabilities, strengthen the competitive positioning of Mon
Valley's blast furnace operations, and secure American steel
supply.
- Gary Works – Revamping of Blast Furnace #14: Under
Nippon Steel's ownership, U. S. Steel's blast furnace operations
will benefit. As part of that, Nippon Steel will invest
approximately $300 million to revamp
Blast Furnace #14 at Gary Works. Through the revamping, the
facility's operational life is expected to extend by up to 20
years. Revamping Blast Furnace #14 will also allow U. S. Steel to
realize significant operational benefits, while customers will
benefit from the continuation of environmentally friendly blast
furnace production at Gary Works as well as from Nippon Steel's
world-leading capabilities for automotive flat steel.
- Other USW-Represented Facilities: Nippon Steel
continues to see numerous opportunities for technology transfer to
U. S. Steel following the closing of the transaction to reduce the
environmental footprint and extend the longevity of the
USW-represented facilities.
As a result of the Transaction, U. S. Steel and all of its
facilities will directly benefit from Nippon Steel's significant
R&D efforts (~$500M annual
spend), its global expertise, world-leading blast furnace know-how,
and strong financial position. This includes sharing Nippon Steel's
COURSE50 technology (currently proven to reduce carbon emissions by
33% in a test blast furnace) and progress on carbon capture and
storage technologies, among other environmental benefits with U. S.
Steel.
Nippon Steel Representative Director and Vice Chairman
Takahiro Mori said: "From the
outset, we have been clear in our admiration for the entire U. S.
Steel portfolio and our desire to provide investment and technical
expertise to protect and grow U. S. Steel as one of the world's
best steelmakers with world-leading capabilities. The investments
announced today will help make U. S. Steel's blast furnace
facilities more productive and environmentally sustainable as we
seek to provide the highest-quality American-made steel products to
American customers, fueled by American workers, while also securing
American steel supply for the future. We are excited to build upon
the strong steelmaking legacy in the Mon Valley and Gary for the
benefit of all stakeholders and the American steel industry for
generations to come."
Nippon Steel is a proven global leader in constructing,
operating, and improving best-in-class blast furnaces. The
Company's eleven blast furnace facilities are widely recognized for
advanced technologies that produce some of the highest quality
steel in the world, while driving production and cost efficiency
and minimizing carbon emissions. To leverage Nippon Steel's
expertise, Nippon Steel recently signed an agreement with U. S.
Steel to conduct an evaluation and provide technical assistance for
the long-term maintenance and operations of U. S. Steel's blast
furnaces. That analysis will further inform the project investments
announced today by Nippon Steel.
The project investments are subject to the closing of the
Transaction and receipt of any necessary regulatory approvals.
Detailed design and specification of those investments will be
determined through further engineering studies.
Nippon Steel expects the transaction to close in the second half
of 2024, subject to the fulfillment of the remaining customary
closing conditions, including receipt of required U.S. regulatory
approvals.
For inquiries, https://www.nipponsteel.com/en/contact/
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SOURCE Nippon Steel Corporation