U.S. Steel, a subsidiary of Nippon Steel, announced that it will invest approximately $3 billion in new hot-rolling equipment at the Mon Valley Works in Pennsylvania. The equipment upgrade is expected to increase annual production capacity from approximately 2.2 million tonnes to approximately 3.5 million tonnes, with operations targeted to begin in the second half of 2029.
Nippon Steel announced that its subsidiary U.S. Steel will build new hot-rolling equipment at the Mon Valley Works. The total investment will be approximately $3 billion, and Nippon Steel has positioned the project as part of its overall plan to invest $11 billion in the United States by 2028.
The new equipment will heat slabs of steel produced in blast furnaces, roll them into thin sheets and wind them into coils, producing steel sheet for automobiles, home appliances and construction materials. The existing equipment has been in operation for nearly 90 years. Switching to the latest equipment is expected to improve energy efficiency and yield, as well as stabilize quality.
Following completion of the investment, annual production capacity is expected to increase from approximately 2.2 million tonnes to approximately 3.5 million tonnes, with operations targeted to begin in the second half of 2029. Nippon Steel's and U.S. Steel's announcements are said to include specific implementation schedules and the timing of a phased start of operations.