U.S. Steel announced on Tuesday that it is partnering with Nippon Steel from Japan to launch a multi-year growth plan in the United States. The goal is to invest approximately $14 billion, with $11 billion to be completed by the end of 2028.
Headquartered in Pittsburgh, Pennsylvania, U.S. Steel, also known as USS, stated that this growth plan, through enhancing operational efficiency, investments from Nippon Steel, and technology sharing, aims to create $3 billion in value.
This initiative follows Japan’s steel industry giant Nippon Steel’s acquisition of the struggling U.S. Steel earlier this year, as part of its efforts to reshape this wholly-owned subsidiary.
David Burritt, CEO of U.S. Steel, mentioned on Tuesday, “With world-class technology, outstanding engineering capabilities, and the most exceptional workforce in the steel industry globally, we are on the path to shaping a great future for American steelmaking.”
“We are steadily constructing a stronger and more competitive company that will benefit our employees, customers, and the communities we serve,” added Burritt.
USS stated that the investments committed by Nippon Steel during the acquisition process will bring about a $2.5 billion increase in earnings before interest, taxes, depreciation, and amortization (EBITDA). Over 200 measures have been identified by both companies to enhance efficiency by incorporating Nippon Steel’s technical expertise into USS’s operations. Both companies emphasize that these improvements will help guarantee business growth in the next phase.
Nippon Steel has already deployed nearly 50 professionals to its U.S. business division, forming a dedicated “Unified Team” focused on implementing new plans and creating long-term value.
The objectives of this plan also include protecting and creating over 100,000 job opportunities nationwide while enhancing the development of communities where U.S. Steel operates.
In June this year, with the support of U.S. President Trump, Nippon Steel finally completed the acquisition of U.S. Steel for $14.1 billion. This acquisition, which lasted 18 months and went through two U.S. administrations, eventually concluded after Nippon Steel and the U.S. government signed a national security agreement.
Under the agreement, Nippon Steel commits to investing $11 billion in U.S. Steel by the end of 2028.
Nippon Steel is the world’s fourth-largest steel company, and following the merger with U.S. Steel, the new company becomes the second-largest steel manufacturer globally.