## U.S. Steel and Nippon Steel’s Investment in Mon Valley Works
United States Steel Corporation (NYSE: X) unveiled a new economic impact analysis today, conducted by Parker Strategy Group. The study highlights how Nippon Steel Corporation’s proposed $1 billion investment to modernize U. S. Steel’s Mon Valley Works would significantly bolster Pennsylvania’s economy.
### A Major Financial Commitment
Nippon Steel is set to invest no less than $1 billion in the Mon Valley Works operations. This sizable investment follows the closing of the pending merger with U. S. Steel and aims to extend the production life of integrated assets while enhancing the security of steel supply to American manufacturers. Besides this, Nippon Steel has already committed $1.4 billion in BLA-covered facilities, showing their robust commitment to the region.
### Assessing the Economic Impact
For the study, the $1 billion investment was split into construction costs ($600 million) and equipment costs ($400 million). The assumption is that $600 million of the total investment would be spent within Pennsylvania. The Parker Strategy Group evaluated various spending scenarios considering supply chain and labor realities, impacting in-state spending for major construction projects.
### Substantial Economic Growth Predictions
If just 80% of the construction budget is spent in Pennsylvania, the Nippon Steel investment could generate a $952.9 million incremental economic impact over two years. In a more conservative scenario, where only 40% of the investment stays within the state, nearly 2,500 jobs would be created. This would generate an economic impact of $476.4 million over the same period.
### Benefits to Local Communities
“Not only will this deal secure U. S. Steel’s Pennsylvania footprint, an economic boon benefiting communities and employees, but the Nippon Steel investment in Mon Valley Works facilities would cause a positive ripple effect across the Pennsylvania economy,” stated U. S. Steel President and Chief Executive Officer David B. Burritt.
### Job Creation and Economic Impact
Depending on the expenditure specifics, the impact on job creation is notable:
– **40% in-state investment:** Generates 2,432 jobs and a $476.4 million economic impact.
– **80% in-state investment:** Results in 4,864 jobs and a $952.9 million economic impact.
### Future Prospects
Scott Buckiso, Senior Vice President & Chief Manufacturing Officer, North American Flat-Rolled Segment, emphasized, “The Nippon Steel investment makes possible a generational upgrade at the Mon Valley Works facilities that will only occur if the transaction closes.”
### Findings from Prior Studies
A 2023 economic impact study indicated that U. S. Steel’s operations in Pennsylvania produced $3.6 billion in total economic impact. This supported 11,417 jobs through its operations and local supply chain purchases while contributing $138.2 million in state and local taxes.
### Company Profiles
#### About U. S. Steel
Founded in 1901, United States Steel Corporation is a leading steel producer with an unwavering focus on safety. Their customer-centric Best for All® strategy advances a sustainable future for stakeholders. Headquartered in Pittsburgh, Pennsylvania, U. S. Steel serves diverse industries with high-value steel products, maintaining an annual raw steelmaking capability of 22.4 million net tons. Learn more at [U. S. Steel](http://www.ussteel.com/).
#### About Parker Strategy Group
With over 50 years of combined experience, Parker Strategy Group specializes in economic impact analysis across various sectors. Led by Nichole Parker, a national economic impact expert, the firm delivers defensible and clear analysis for clients such as FGS Global and Penn State University. For more information, visit [Parker Strategy Group](http://www.parkerstrategygroup.com).
### Forward-Looking Statements
This release contains forward-looking statements under the Private Securities Litigation Reform Act of 1995, including discussions of the proposed transaction between U. S. Steel and Nippon Steel and potential investments. These statements are based on assumptions and are subject to risks and uncertainties that could cause actual results to differ.
For full details, read the [full economic impact study](https://www.bestdealforamericansteel.com/impact-study/).
### Disclaimer
The economic analysis report is an independent analysis by Parker Strategy Group based on certain information provided by U. S. Steel Corporation. Actual outcomes may differ. View source on [Business Wire](https://www.businesswire.com/news/home/20241001378845/en/).
#### Contact
– **U. S. Steel Media Relations:**
T: (412) 433-1300
E: [media@uss.com](mailto:media@uss.com)
Source: United States Steel Corporation
