US Steel approves US$300 million tranche of Nippon Steel spending

UNITED States Steel approved a US$300 million investment to upgrade some of its facilities, advancing part of an US$11 billion commitment by Nippon Steel after its takeover of the storied American steelmaker earlier this year.

A new slag recycler will be installed at the Edgar Thomson works in Pennsylvania for US$100 million, while US$200 million will go to improving the hot strip mill at the Gary Works in Indiana, US Steel said in a Wednesday statement.

“The two projects represent only a fraction of the activity underway as part of Nippon Steel’s investments in US Steel,” the American steelmaker said.

Japan’s Nippon Steel took control of US Steel in June after a protracted takeover battle that drew the personal involvement of US President Donald Trump. The Japanese firm pledged to invest US$11 billion in the company among a number of conditions to win the administration’s approval. BLOOMBERG