Nippon Steel has announced plans to build a new hot-strip mill at U.S. Steel’s Mon Valley Works, which it is acquiring, with a total investment of approximately $3.0 billion, or approximately ¥470 billion, and aims to begin operations in the second half of 2029.
Nippon Steel announced that it will invest approximately $3.0 billion to install a new hot-strip mill at U.S. Steel’s Mon Valley Works. The project will replace aging equipment, increase production capacity and expand the range of products offered. Operations are scheduled to begin in the second half of 2029.
The new facility will process slabs heated to high temperatures by rolling them into thin steel sheets, which will be used to produce steel sheets for automobiles, home appliances and construction materials. Annual production capacity is expected to rise from approximately 2.2 million tonnes to approximately 3.5 million tonnes, an increase of about 60%.
The investment is part of the investment plan through 2028 that Nippon Steel committed to when acquiring U.S. Steel and is expected to be the largest project under the plan. The initial plan called for an investment of up to $2.5 billion, but the projected amount has increased.
The aim is to capture demand for automotive steel sheets and other products in North America and strengthen competitiveness. There is a view that the reshoring of manufacturing to the United States and increased infrastructure investment will help expand local supply capacity.