Following its acquisition of United States Steel Corporation (US Steel), Japanese steel company Nippon Steel announced that it plans to build an entirely new steel plant in the United States, with final site selection expected by the end of 2026. The company aims to shortlist two or three candidate states by next summer.
Under the plan, the company will install two electric arc furnaces that will primarily use scrap metal as a raw material. Together, they are expected to produce about three million tons of crude steel annually, supported by an estimated investment of $4 billion.
Key site selection criteria and Nippon requirements
According to Nippon Steel management, the company will evaluate potential locations based on several important factors: land availability, power supply, proximity to rail and highway networks, access to labor, and local regulatory and political conditions. They will also consider regional demand for steel and the ease of sourcing materials, including scrap metal, when narrowing down candidate states.
Strategic Rationale: Strengthening US presence and modernizing production
The planned US plant is consistent with Nippon Steel's broader strategy to revitalize and expand its US operations under US Steel. With earlier commitments to invest heavily in upgrading existing facilities, the new electric furnace plant will add modern scrap steel production capacity, increasing flexibility and energy efficiency
