Japanese steelmaker Kyoei Steel has revised the capital investment plan it originally announced on January 31, 2025 for its US subsidiary Vinton Steel LLC, increasing the planned annual production capacity to 360,000 net tons following partial changes to the project scope.
Kyoei Steel stated that the revision forms part of its NeXuS II 2026 medium-term business plan covering 2025-2027, under which the company aims to strengthen its overseas steel operations, with particular emphasis on North America.
Within this framework, Kyoei Steel explained that it decided to modernize Vinton Steel’s aging facilities in order to improve and stabilize profitability, primarily through significant productivity enhancements. These measures include the construction of a new melt shop and major modifications to existing rolling mill equipment at the Vinton Steel site.
Investment value revised upward
According to Kyoei Steel, when accounting for inflation, higher material and construction costs, and the impact of reciprocal tariffs in the United States, the overall investment cost has exceeded the level outlined in the previous announcement.
As a result, the company stated that the total investment amount has increased by $72 million, bringing the revised total investment to $327 million.
Kyoei Steel detailed the updated investment plan as follows:
Capital investment components
- New melt shop: Manufactured by Tenova
- Rolling mill upgrades: Major modification of existing equipment manufactured by Pomini Long Rolling Mills
- Engineering and construction management: Conducted by Techint Engineering & Construction
Capacity
- Melt shop: 360,000 net tons/year (up from 330,000 net tons)
- Rolling mill: 360,000 net tons/year (up from 330,000 net tons)
Kyoei Steel stated that the project schedule remains unchanged, with construction work scheduled to start in April 2026. According to the company, the new melt shop is expected to commence operations in March 2027, while integrated commercial production on the new line is planned to begin in October 2027. Kyoei Steel also added that foundation works and other preliminary construction activities are progressing as scheduled.
