Nippon's U.S. Steel to Invest Nearly $3B in Hot Strip Mill Near Pittsburgh

Dow Jones10-22 22:46

U.S. Steel plans to invest nearly $3 billion in a new hot strip mill at its plant near Pittsburgh.

U.S. Steel, which is owned by Tokyo-based Nippon Steel, said the investment will replace aging equipment with modern steelmaking technology, increasing annual production capacity to about 3.5 million tons from 2.2 million tons. The move also aims to expand the range of steels that U.S. Steel can produce.

With new walking beam furnaces and an in-line slab sizing press, the mill is designed to be more efficient. It will use less fuel, eliminate a cutting step and reduce scrap, U.S. Steel said.

A hot strip mill makes steel slabs into thin coils used to manufacture products like vehicles, appliances and construction materials. With the investment, the company expects to better compete across the automotive, appliance and line pipe markets.

"The steel this country needs for the future is coming to the Mon Valley today," U.S. Steel's Chief Manufacturing Officer Scott Buckiso said.

U.S. steel expects initial production at the mill in late 2029. It plans to start construction after receiving the necessary permits.

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