US Steel’s planned steel plant will be located in the United States as early as June or July 2026, a Nippon Steel executive told Nikkei Asia, as the unit seeks a turnaround with financial support from its Japanese parent company.
US Steel aims to start operations at the new electric arc furnace steel plant as early as 2029. The host country will receive huge investments and is expected to create many new jobs.
“We have received inquiries from many states and are carefully analyzing which locations have infrastructure, such as electricity, that are profitable,” said Takahiro Mori, executive vice president of Nippon Steel.
Nippon Steel expected US Steel to contribute 80 billion yen ($516 million) to its operating profit, excluding losses from inventory impairment, for the fiscal year ending March 2026. But when announcing April-September results in November, the parent company reversed expectations and said the contribution would be zero. Nippon Steel completed its $14 billion acquisition of US Steel in June.
“We believe US Steel will ultimately make a significant contribution, but given the significant uncertainty surrounding the US economy, we need to wait and see how things develop,” Morey said.
Nippon Steel also decided to share advanced technology with US Steel, the first such offshoring by the Japanese company. It will invest $11 billion in the US steelmaker through 2028 to renovate existing production facilities and build new ones for grain-oriented electrical steel sheets used in data center transformers. “Investing in the steel industry takes time, but $11 billion will definitely change the earnings structure,” Mori said. “US Steel has invested little so far.”
At the end of November, US President Donald Trump appointed David Shapiro, a senior advisor to the Department of Commerce, to the board of directors of US Steel.
The appointment was made “under preferred stock power,” Morey said, referring to preferred stock in US Steel held by the US government, giving it veto power and other rights.
“Shapiro was also present during the takeover negotiations, so we know each other well,” Morey said.
In a letter to US Steel management announcing the appointment, Trump wrote that “the United States government must closely monitor US Steel and its compliance with the agreement” between the US government and the two companies to maintain steel production in the United States.
As its business in Japan continues to face challenges due to excess Chinese production, Nippon Steel is positioning India as a pillar of growth alongside the US.
“India’s steel industry is protected by tariffs and is one of the few markets in the world where demand is growing,” Mori said. A joint venture between Nippon Steel and European company ArcelorMittal will build a new steel plant in India.
“Expectations from the local government are high, and the environmental assessment process is progressing at an exceptionally fast pace, so we hope to receive approval soon,” Morey said.