Nippon Steel to Shortlist Two or Three States for New US Plant

Core Insights - Nippon Steel Corp. plans to shortlist two or three states for a new steel plant in the US, with a final decision expected by early 2027 [1][2] - The new facility will have an annual capacity of 3 million tons and will be operated by the company's subsidiary, United States Steel Corp. [2] - The investment is part of Nippon Steel's goal to achieve a profit target of 1 trillion yen ($6.4 billion) and to recover some of the $14.1 billion spent on acquiring US Steel [4] Investment and Operational Considerations - The new plant will utilize electric arc furnaces, requiring stable and low-cost electricity due to the power-intensive nature of this steelmaking method [5] - Tax incentives and infrastructure for handling raw materials will also be considered in the site selection process [5] Market Strategy and Challenges - The selection process will align with the expiration of US Steel's collective bargaining agreements in September 2026, with ongoing discussions about potential new deals [6] - Nippon Steel identifies the US and India as key markets in its mid-term strategy, with plans to enhance operations in Thailand as a major overseas business pillar [7] - The company faces challenges in the domestic Japanese market due to declining demand and competition from low-cost Chinese products [8]