Nippon Steel officials say the company will invest $300 million to revamp Gary Works No. 14 blast furnace as part of its pending acquisition of United States Steel Corp.
“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,” said Takahiro Mori, Nippon Steel representative director and vice chairman, in a press release.
The upgrade would extend the life of the furnace about 20 years, the company said. It also plans $1 billion in upgrades to the Mon Valley Works site in Pennsylvania.
“The investments announced (Aug. 28.) 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,” Mori said. “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.”
Gary Mayor Eddie Melton said he has been meeting with Hiroshi ONO, president and CEO of Nippon Steel North America, about the deal.
“I've strongly advocated for bringing more investment into the Gary Works plant if the acquisition were to be approved,” Melton said in a statement on the city of Gary's website.
He said that the investment in Gary Works could be “transformative” to the community.
“As a child of a steelworker, I want to make sure the current steelworker's contract was honored, and that Gary remained a priority among the other plants across the United States,” Melton said.
Nippon Steel expects the $14.1 billion merger to close by the end of the year, pending any regulatory approvals. It already has pledged a $1.4 billion investment in U.S. Steel facilities if the deal closes.
U.S. Steel Corp. stockholders overwhelmingly voted in May to approve the proposed merger with Japanese steelmaker Nippon Steel Corp. Nippon has pledged no job cuts will occur as a result of the deal. Cleveland-Cliffs also made a buyout offer on U.S. Steel in August 2023.
