Nippon Steel invests $11 billion and transfers technology to boost U.S. Steel profits

Written by Emily J. Thompson, Senior Investment Analyst

Source: Reuters

Updated: Aug 28 2025

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Source: Reuters

Nippon Steel's Investment Plans: Nippon Steel plans to invest $11 billion in U.S. Steel to enhance profitability and expand capacity, aiming for a significant increase in high-grade product output.
Acquisition Details: The acquisition of U.S. Steel, valued at $14.9 billion, was finalized in June after an 18-month process influenced by political changes in the U.S.
Profit Projections: The investment is projected to boost U.S. Steel's annual profit contribution to 250 billion yen ($1.70 billion) by fiscal 2028, with expectations of further growth beyond that.
Future Developments: Plans include constructing a new hot-rolling mill and refurbishing existing facilities, while financing strategies will be evaluated to support the investment without significantly diluting shareholder equity.

About the author

Emily J. Thompson

Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.