Japanese steelmaker Nippon Steel has unveiled details of its planned $4 billion investment in a new electric arc furnace (EAF) steel mill for its American subsidiary US Steel, with operations expected to begin in 2029.
According to local media, Takahiro Mori, vice president of Nippon Steel and chairman of US Steel, disclosed that the facility will produce steel from scrap metal using two large electric arc furnaces. The plant will have an annual production capacity of around 3 million mt of steel. While the exact location has not yet been chosen, Mori confirmed that several US states have expressed interest, and the decision will be made in the first half of next year after evaluating land availability and labor conditions.
Once operational, the new mill is expected to generate thousands of jobs in the chosen state.
Complementary investments in the US
This new project is part of Nippon Steel’s broader $11 billion investment plan. The company is also introducing advanced technology at its Arkansas steel mill, aiming to produce high-quality electrical steel sheets for the automotive sector within one to two years.
In addition, Nippon Steel plans to spend $3.1 billion refurbishing US Steel’s largest blast furnace at the Gary Works plant in Indiana. According to Mori, a general medium-term strategy for US Steel is being finalized and will be completed by September. The focus will remain on modernizing and upgrading existing facilities.
Long-term production goals
Looking ahead, Nippon Steel intends to increase its global crude steel output, including US Steel, to 100 million mt within the next decade - a 60 percent rise compared to current levels.