Nippon Steel logo is displayed at the company's headquarters in Tokyo, Japan April 1, 2024. REUTERS/Issei Kato/ File PhotoTOKYO : Japan's biggest steelmaker Nippon Steel said on Thursday it plans to make an additional investment of about $1.3 billion in U.S. Steel's two mills as part of its pending acquisition of the U.S. company.
The fresh spending plan includes at least $1 billion to increase the capacity for high-grade steel at Mon Valley Works in Pennsylvania and $0.3 billion to upgrade facilities to extend its production life at Gary Works in Indiana, Nippon Steel said. Both steelmakers have received all regulatory approvals outside of the United States for the deal, but face political opposition, U.S. regulatory scrutiny and objections from the powerful United Steelworkers union, which fears the deal could lead to job losses.