US Steel presented an $11 billion investment plan in partnership with Nippon Steel

American steel producer United States Steel Corp (US Steel) has announced that it is launching a multi-year growth plan in partnership with Nippon Steel. This is stated in the company’s press release.

In June this year, Nippon Steel acquired US Steel for more than $14 billion, ending a months-long battle for the takeover. As part of the deal, the former agreed to invest $11 billion in the Pittsburgh-based American company by 2028.

The growth plan could generate about $3 billion in profits, including about $2.5 billion in additional EBITDA from capital investments promised by Nippon over the next three years, and another $500 million from operational efficiencies (the parties have identified more than 200 initiatives across all business segments related to the use of the Japanese company’s technologies in the US).

«Even after just a few months of our partnership with Nippon Steel, we are making significant progress. We have a robust portfolio of growth projects, ranging from the modernization of the hot rolling mill at Gary Works to a new slag processor at Mon Valley Works and the development of new production capacity. These initiatives are already delivering real results,» said US Steel CEO Dave Burritt.

Currently, nearly 50 Nippon Steel specialists are assigned to all US Steel facilities. The plan is to improve product quality and expand the product range, with a focus on modernization and expansion of production.

Recall that on June 14, US President Donald Trump approved the purchase of US Steel by Japanese steel manufacturer Nippon Steel. The companies have signed a national security agreement with the US government. Among other things, the agreement includes commitments related to management (in particular, a “golden share” for the US government), domestic production, and trade issues.