Nippon Steel announced a finalized agreement on Wednesday to buy U.S. Steel for nearly $14.2 billion.
The impact of the highly anticipated deal is set to reverberate across the domestic steel industry. The combined company will be the fourth-largest steel producer in the world, with an annual capacity of 86 million tons.
Nippon committed to investing $11 billion in the U.S. by the end of 2028, with projects planned across Alabama, Arkansas, Indiana, Minnesota and Pennsylvania that promise to “protect and create” 100,000 jobs.
The Japanese steelmaker's planned investments across the six locations include:
- $3.1 billion for the Gary Works mill in Gary, Indiana
- $3 billion for the Big River Steel facility in Osceola, Arkansas
- $2.4 billion for the Mon Valley mill in Mon Valley, Pennsylvania
- $1 billion for a mini mill in an undecided location
- $800 million for the Minntac and Keetac mines in northern Minnesota
- $500 million for the Fairfield Works mill near Birmingham, Alabama
As part of these projects, Nippon will establish a research and development center in Pennsylvania, a pipe and tube mill in Alabama, an electric arc furnace mini mill in Arkansas and the expansion of a direct reduced grade pellet plant in Minnesota.
It will also make upgrades to its blast furnace mills in Indiana and Pennsylvania, as well as construct a new steel mill project.
The investments will be "primarily funded through U.S. Steel’s enhanced cash generation," according to a Nippon presentation.
U.S. Steel's financials will be consolidated from Nippon's fiscal year 2025 Q2 earnings report, covering July to September 2025. Nippon's earnings forecast, including the impact of the U.S. Steel acquisition, will be announced with its FY2025 Q1 results in August.
