U.S. Steel's Edgar Thomson works getting new hot strip mill

Nippon Steel will build a new hot strip mill at the Edgar Thomson Works in Braddock as part of a $14 billion investment package for U.S. Steel facilities.

U.S. Steel, which was bought by Nippon in June, described the planned mill as “state of the art” but offered few other details in a business plan released Tuesday.

In the lead-up to the sale, Nippon promised it would spend about $11 billion across all U.S. Steel plants by 2028 and $14 billion total.

The acquisition, itself, cost nearly $15 billion.

The company expects the partnership to eventually generate an additional $3 billion in annual adjusted earnings before interest, taxes, depreciation and amortization, according to the business plan. This includes $2.5 billion from capital investments and $500 million from operational efficiencies.

In September, U.S. Steel’s board — containing several Nippon officials — approved a $100 million slag recycler at the Braddock plant.

The new equipment will allow this waste material to skip the landfill and instead be sold to companies that make cement and build roads. It will also trap more harmful pollutants, U.S. Steel says.

No further investments into the Mon Valley Works are anticipated this year. Nippon promises to spend $2.4 billion there by 2028, though.

Nippon also said in the business plan it has sent nearly 50 experts to U.S. Steel plants and headquarters to help improve operations. Three of them are at the Edgar Thomson Works.