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The
combined company became the world’s fourth-largest steelmaker,
and Nippon agreed to invest $11 billion to upgrade U.S. Steel's
facilities.
Tuesday the company said it will make the investments by the end
of 2028. The plan targets unlocking $2.5 billion in savings from
capital investments and another $500 million from operational
efficiencies.
U.S. Steel says it has identified more than 200 initiatives to
save money across all business segments, assisted by nearly 50
professionals from Nippon Steel. The company is modernizing and
expanding its manufacturing operations and expanding research
and development to feature “higher value, lower emission steel."
CEO Dave Burritt said, “We have a robust pipeline of growth
projects, ranging from the modernization of our Gary (Indiana)
Works Hot Strip Mill to the new slag recycler at Mon Valley
Works (Pennsylvania) and the development of new product
capabilities."
The plan is designed to “protect and create more than 100,000
jobs nationwide in the United States,” although U.S. Steel did
not provide more specifics.
David McCall, president of United Steelworkers International,
said in a statement, "Since our first engagement with Nippon,
we’ve been clear that investing in these workers and their
facilities is the best use of the company’s resources. As Nippon
and U.S. Steel begin to lay out their vision, we encourage them
to prioritize this skilled, union workforce – now and well into
the future.”
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