Nippon Steel Targets U.S. Expansion to Challenge China Baowu

Nippon Steel Corp. will build a new steel mill in the US via its subsidiary U.S. Steel to close the gap in production against global leader China Baowu Steel Group Corp., CEO Eiji Hashimoto affirmed in an interview. The firm will start to invest in the new mill by 2028, its first new plant since 1971.

Eiji Hashimoto said, “We must not let Chinese competitors catch up on innovative technology. For that purpose, we must increase production scale.”

Nippon Steel, Japan’s largest steelmaker, acquired U.S. Steel in June for USD 14 billion (2 trillion yen) and intends to boost its crude steel output to over 100 million tons within the next decade, from 44 million tons in 2024. In comparison, China Baowu produced 130 million tons and ArcelorMittal 65 million tons that year.

Key Highlights-

• Nippon Steel to build new U.S. mill by 2028, its first since 1971, through subsidiary U.S. Steel
• Aims to double global output to 100 million tons, challenging China Baowu's dominance
• Company shifts focus from China to U.S. amid rising geopolitical tensions

The plan involves increasing U.S. Steel's production to 14 million from at least 34 million tons, as well as improving production at an Indian joint venture and a Thai factory.

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Hashimoto also described a significant change in geographical emphasis. The firm is pulling back from China, having already dissolved a joint venture with Baoshan Iron and Steel Co., due to escalating geopolitical tensions. "When we have to choose between the United States and China, it is assumed Japan will align itself with the United States," he said.

To aid the U.S. mill, Nippon will dispatch engineers abroad and educate employees for the new build stage.