U. S. Steel(US:X) 日经中文网·2025-08-29 02:48Core Viewpoint - Nippon Steel plans to build an electric arc furnace steel plant in the U.S. with an investment of $4 billion, aiming for operation after 2029, to enhance the competitiveness of U.S. Steel and respond to job creation demands from the Trump administration [2][4]. Group 1: Investment and Operations - U.S. Steel's final profit for fiscal year 2024 is projected to decrease by 57% to $384 million, indicating ongoing struggles [4]. - The new plant will utilize scrap metal as raw material, employing two large electric furnaces that are more efficient and environmentally friendly, with an annual production capacity of 3 million tons [6]. - Nippon Steel has committed to an additional investment of approximately $11 billion by 2028, which includes the initial investment for the new plant [6]. Group 2: Employment and Economic Impact - The construction of the new steel plant is expected to create job opportunities, aligning with Trump's narrative of boosting investment and employment through the acquisition of U.S. Steel [6]. - The decision on the construction site will be made by mid-2026 after evaluating land conditions and labor availability [6]. Group 3: Technological Advancements - Nippon Steel plans to leverage its advanced technology to enhance production capabilities, including the production of high-quality automotive-grade electromagnetic steel sheets within 1-2 years [6]. - The company aims to increase the overall crude steel production of its group, including U.S. Steel, to 100 million tons over the next decade, a 60% increase from current levels [8]. Group 4: Market Context - Despite a challenging global steel market due to oversupply from China, the U.S. steel market benefits from high tariffs imposed by the Trump administration, providing a protective environment for U.S. Steel [8]. - Nippon Steel believes that investments and quality improvements through its technology will enhance profitability, even in a difficult market [8].