U.S. Steel has been a perennial air polluter, so GASP has been closely following news related to Nippon Steel’s pending acquisition of the Mon Valley Works facilities.
Last night, the company dropped some significant news: That it had committed to investing “no less” than $1 billion to “replace and/or upgrade the existing hot strip mill and other facilities at Mon Valley.”
According to a Nippon release, this investment would include “improving yield, increasing energy efficiency, improving product quality, and enhancing overall operating effectiveness.”
Here’s what they said in a release:
Nippon Steel plans to ensure Mon Valley Works operates for decades to come and will undertake the necessary investments so that it remains viable and provides jobs for future generations of steelworkers in Pennsylvania.
As part of that commitment and following the closing of the Transaction, Nippon Steel will replace and/or upgrade the existing hot strip mill at Mon Valley Works and other facilities.
Nippon Steel believes that a transformed Mon Valley Works will expand U. S. Steel's ability to serve a broader range of markets and customers, create additional high-grade steel capabilities, strengthen the competitive positioning of Mon Valley's blast furnace operations, and secure American steel supply.
An additional $300 million in the Gary Works was also announced.
Nippon said it “continues to see numerous opportunities for technology transfer to U. S. Steel following the closing of the transaction to reduce the environmental footprint and extend the longevity of the USW-represented facilities.”
How are they gonna do that? Here’s how they explained it:
This includes sharing Nippon Steel's COURSE50 technology (currently proven to reduce carbon emissions by 33% in a test blast furnace) and progress on carbon capture and storage technologies, among other environmental benefits with U. S. Steel.
So, what’s the possible timeline on the pending acquisition? Nippon said it expects the transaction to close in the second half of 2024, subject to the fulfillment of the remaining customary closing conditions, including receipt of required U.S. regulatory approvals.
GASP continues to follow this issue closely and will keep you posted.