Steel Mill Project Kickoffs Unfazed by Mega Acquisition

News of Nippon Steel's (Tokyo) planned acquisition of United States Steel Corporation (NYSE:X) (U.S. Steel) (Pittsburgh, Pennsylvania) sent shockwaves through the industry last month, but the $14.9 billion purchase isn't stopping steelmakers in the U.S. from planning a host of capital projects in the first quarter of 2024.

Nippon Steel said in a press release its acquisition of U.S. Steel "will enhance its world-leading manufacturing and technology capabilities and enable it to expand the geographic areas in which (Nippon Steel) can better serve all of its stakeholders, including customers and society at large."

As a result of the acquisition, Nippon Steel's annual crude steel capacity will reach 86 million metric tons, accelerating its progress toward its goal of 100 million metric tons of global crude steel capacity annually.

Not everybody is pleased with the transaction, however, with the United Steelworkers (USW) union and some members of Congress opposing the deal.

For more information, see December 19, 2023, article - Nippon Steel Beats Out Rivals in $14.9 Billion U.S. Steel Purchase.

Regardless of any controversy regarding the acquisition, several steel mill projects in the U.S. are planned to start construction in the first quarter of this year.

Industrial Info is tracking 73 capital steel mill projects in the U.S., valued at $1.71 billion, that are planned to kick off construction in the first quarter of 2024. The projects range from grassroot facilities to unit additions and revamps.

One of the more substantial kickoffs involves a grassroot granulated pig iron production plant in Granite City, Illinois. SunCoke Energy Incorporated (NYSE:SXC) (Lisle, Illinois) plans to construct a 2-million-ton-per-year facility to make granulated pig iron for U.S. Steel over a 10-year initial term. U.S. Steel would supply the iron ore to produce the pig iron. In 2022, SunCoke and U.S. Steel reached a non-binding agreement for SunCoke to acquire U.S. Steel's Granite City Works blast furnaces and build the granulated pig iron plant on the site.

Project completion is planned for first-quarter 2025. The impact of the acquisition of U.S. Steel by Nippon Steel on the project is unknown.

The pig iron project could run into headwinds due to environmental permitting issues, with the Illinois Environmental Protection Agency (EPA) signaling its intention to deny a request to increase emissions at the plant site, industry observer Fastmarkets reported in December. Subscribers to Industrial Info's Global Market Intelligence (GMI) Metals & Minerals Project Database can click here for the project report.

Another large project planned for kickoff in the first quarter is Nucor Corporation's (NYSE:NUE) (Charlotte, North Carolina) Flat-Rolled Steel Mill Third Galvanizing Line Addition in Fontana, California. To be built at Nucor's existing facility, the third line would increase galvanizing capacity at the facility by 400,000 tons per year, for a total of 1.2 million tons per year. The new galvanizing line will serve construction end markets in the western United States. Subscribers can click here for the project report.

Nucor also is planning to kick off a modernization of its 1.2-million-ton-per-year steel coil and plate mill in Tuscaloosa, Alabama, during the first quarter. Nucor will install a new rolling mill stand to produce thinner, stronger, higher-quality plate and a new product line. Subscribers can click here for more information.

GMI database subscribers can click here for all project reports mentioned in this article and click here for the related plant profiles.

Subscribers can click here for a list of all steel mill capital projects that are planned to kick off during the first quarter in the U.S.