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▼ Nippon Steel To Invest Additional $1.3 Bil In U.S. Steel Plants
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Nippon Steel Corp said Thursday it will make an additional investment of over $1.3 billion in United States Steel Corp, in an apparent bid to help clinch its planned acquisition of the iconic American steelmaker.
The move comes amid opposition to the deal from United Steelworkers, a major labor union. The latest investment, intended for two U.S. Steel plants, will add to the $1.4 billion Nippon Steel already promised to invest in the U.S. firm, the Japanese company said.
Nippon Steel will invest at least 1 billion in Mon Valley Works in Pennsylvania to improve the plant's competitiveness by upgrading facilities to produce high-grade steel for cars and create more jobs, it said.
The remaining $300 million will be spent on Gary Works in Indiana to revamp its blast furnace, extending the facility's operational life by up to 20 years.
"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 announced a $14.1 billion acquisition plan for U.S. Steel in December last year as it seeks to expand operations in the United States, where demand for steel is expected to grow.
But the move has been met with United Steelworkers' strong opposition as they are concerned about job security, as well as from Donald Trump, the Republican nominee for the November presidential election.
© KYODO
The move comes amid opposition to the deal from United Steelworkers, a major labor union. The latest investment, intended for two U.S. Steel plants, will add to the $1.4 billion Nippon Steel already promised to invest in the U.S. firm, the Japanese company said.
Nippon Steel will invest at least 1 billion in Mon Valley Works in Pennsylvania to improve the plant's competitiveness by upgrading facilities to produce high-grade steel for cars and create more jobs, it said.
The remaining $300 million will be spent on Gary Works in Indiana to revamp its blast furnace, extending the facility's operational life by up to 20 years.
"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 announced a $14.1 billion acquisition plan for U.S. Steel in December last year as it seeks to expand operations in the United States, where demand for steel is expected to grow.
But the move has been met with United Steelworkers' strong opposition as they are concerned about job security, as well as from Donald Trump, the Republican nominee for the November presidential election.
© KYODO
- 29/8 20:58
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