Nippon Steel boosts investment in U.S. Steel acquisition bid

By AJP Posted : August 30, 2024, 10:48 Updated : August 30, 2024, 10:48
This photo shows the logo of United States Steel Corp on a water tower. AP-Yonhap
SEOUL, August 30 (AJP) - Japan's largest steelmaker Nippon Steel Corp. announced on Thursday an additional investment of over 188 billion yen ($1.3 billion) in United States Steel Corp., bolstering its efforts to acquire the iconic American company. This move comes amid opposition from the United Steelworkers union and former U.S. President Donald Trump.

The fresh capital injection will target two U.S. Steel plants, supplementing the about 200 billion yen investment Nippon Steel had previously committed. Roughly 145 billion yen will be allocated to modernize Mon Valley Works in Pennsylvania, enhancing its capacity to produce high-grade automotive steel and create new jobs.

The remaining some 45 billion yen will be used to upgrade the blast furnace at Gary Works in Indiana, potentially extending its operational lifespan by up to two decades. These investments are seen as strategic moves to address concerns about job security and the future of American steel production.

"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," Nippon Steel vice chairman Takahiro Mori said in a statement.

Nippon Steel, which proposed some 2 trillion yen acquisition of U.S. Steel in December 2023, aims to expand its presence in the United States, where steel demand is projected to grow. However, the deal faces significant hurdles, including opposition from labor unions and political figures in the run-up to the November presidential election.
 

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