US Steel Says Japanese Ownership to Unlock $3B in Value
Companies Also Identified More Than 200 Initiatives to Boost Efficiencies
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United States Steel Corp. sees the potential to unlock $3 billion in value thanks to its new Japanese ownership, with added earnings from Nippon Steel Corp.’s investments in new projects along with operational efficiencies.
U.S. Steel said Nov. 4 it’s anticipating $2.5 billion in incremental run-rate earnings before interest, taxes, depreciation and amortization from capital investments Nippon Steel committed to as part of its takeover of the American steelmaker.
The companies also identified more than 200 initiatives to boost efficiencies by adding Nippon Steel’s technological expertise to U.S. Steel operations.
Nippon Steel acquired U.S. Steel for $14.1 billion in June, bringing an end to a bruising takeover battle that was embroiled in American politics for months until gaining support from President Donald Trump.
Today unveiled our next era of growth in our partnership with Nippon Steel. The plan targets approximately $14 billion of U.S. growth capital to protect and create 100,000+ jobs nationwide.
🎥 Watch what it means to of American steelmaking:… — U. S. Steel (@U_S_Steel)
As part of the deal, the Japanese company agreed to invest $11 billion in the Pittsburgh-based company by 2028.
“Even just a few months into our partnership with Nippon Steel, we’re making great progress,” U.S. Steel CEO Dave Burritt said in the statement. “We have a robust pipeline of growth projects, ranging from the modernization of our Gary Works Hot Strip Mill to the new slag recycler at Mon Valley Works and the development of new product capabilities.”
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