Nippon Steel to invest $11 billion in U.S. Steel to boost profit and capacity, transferring operational know-how to expand high-grade products. Acquisition finalized in June after 18-month process, aiming to increase U.S. Steel’s annual profit contribution to 250 billion yen by 2028.

Plans include new hot-rolling mill in Pennsylvania, blast furnace refurbishment in Indiana, and capacity expansions like electromagnetic steel sheet lines. Nippon Steel’s Vice Chairman envisions new mill construction from the ground up, potentially raising U.S. Steel’s domestic crude steel capacity to 20 million tons.

Acquisition boosts Nippon Steel’s global crude steel capacity to 86 million tons, closer to its 100 million-ton target. Detailed investment plan to be announced later this year as part of new medium-term business strategy. Funding to partially repay bridging loan and explore hybrid financing options to support investment.

Optimal financing strategy under consideration, including potential hybrid, convertible, and corporate bonds to raise 500 billion yen. U.S. Steel to initially fund $11 billion investment, with Nippon Steel as backup. Impact of Clairton plant explosion being assessed, may slightly affect profit contribution for the current year.

Read more at Yahoo Finance: Nippon Steel bets on $11 billion investment, tech transfer to lift U.S. Steel profit