Nippon Steel CEO Eiji Hashimoto has unveiled a bold expansion strategy to double the company’s crude steel production in the United States within the next three to five years, focusing on major upgrades to U.S. Steel, which was recently acquired by the Japanese steel giant.
Currently, U.S. Steel produces 11 million metric tons (mt) of crude steel annually, representing about 15% of the U.S. market. Under the new plan, Nippon Steel will target over 22 million mt in annual U.S. production.
$11 Billion Revamp to Power U.S. Expansion
Hashimoto announced that $11 billion will be invested by 2028 to modernize aging U.S. Steel facilities. The upgrades will include:
-
Advanced steelmaking technologies
-
Broader production capabilities
-
A focus on high-performance steel, including electrical steel sheets
"Through our new investments, we will expand capacity, broaden our production offerings, and double production," Hashimoto told The Yomiuri Shimbun.
A Global Push to 100 Million Metric Tons
This U.S. initiative is part of Nippon Steel’s global strategy to boost annual crude steel production from 58 million mt to 100 million mt, aiming to surpass current world leader ArcelorMittal.
Expansion efforts also include:
| Country | Key Developments |
|---|---|
| India | 15 million mt addition via ArcelorMittal Nippon Steel, with a new mega steel plant |
| Thailand | Strengthening market presence to gain majority market share |
| Slovakia | Possible doubling of production capacity at U.S. Steel's European operations |
Hashimoto stressed the urgency of this growth strategy in the face of increasing low-cost steel exports from China.
"To avoid negative impacts from China, we can't allow it to dominate crucial markets like the U.S., India, Europe, and Thailand," he warned.
The move solidifies Nippon Steel's intent to become the world's leading steel producer, reshaping the global steel landscape over the next decade.
VietnamSteel by Hoa Sen Group
