Nippon Steel to invest $350 mil to upgrade U.S. Steel blast furnace

TOKYO — Nippon Steel Corp. said Tuesday its wholly owned subsidiary, United States Steel Corp, will invest $350 million to revamp its largest blast furnace, part of the $11 billion investment the Japanese company promised to the U.S. government in winning approval for the acquisition of the U.S. steelmaker.

U.S. Steel said relining blast furnace No. 14 at the Gary Works plant in Indiana, which produces iron for high-strength steel, is "critical maintenance" needed to ensure long-term iron-making capabilities and capacities.

Seeing the United States as one of its key growth markets, Nippon Steel acquired the iconic U.S. steelmaker in June in a $14.1 billion transaction.

The deal was finalized after the Japanese steelmaker pledged to invest approximately $11 billion in the U.S. company through 2028 in an effort to win over support from the administration of U.S. President Donald Trump.

Nippon Steel said in its new medium- to long-term management plan released earlier this month that it aims to invest around 6 trillion yen ($38 billion) over the next five years domestically and globally to upgrade U.S. Steel facilities.

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