U.S. Steel announced Monday that it plans to invest up to $2.5 billion to modernize its Mon Valley Works facilities near Pittsburgh. The company said the project will protect thousands of jobs and strengthen steel production in western Pennsylvania for decades to come.
The investment is backed by Japan-based Nippon Steel following its acquisition of U.S. Steel. It includes construction of a new hot strip mill at the Edgar Thomson Plant in Braddock. The facility will replace an 87-year-old hot strip mill at the nearby Irvin Plant in West Mifflin. The project is part of a broader modernization effort.
According to an economic impact analysis released by U.S. Steel, the project could generate up to $1.7 billion in economic activity across Pennsylvania over the next three years. The company estimates the investment will support up to 6,381 jobs. It could also generate as much as $58 million in state and local tax revenue.
The announcement comes about a year after Nippon Steel completed its nearly $15 billion acquisition of U.S. Steel. The deal faced opposition from labor groups. It also raised national security concerns during the Biden administration. The acquisition ultimately moved forward under the Trump administration.
The deal included a national security agreement that requires Nippon Steel to invest $11 billion in U.S. Steel facilities by the end of 2028.
U.S. Steel President and CEO David Burritt said the investment demonstrates the company’s long-term commitment to the region.
“The Mon Valley Works is where the American steel industry was first forged, and this investment is proof that its best days are still ahead,” Burritt said. “This investment means thousands of good-paying jobs protected, a world-class facility, and steel that will supply American automakers and manufacturers for generations.”
The new hot strip mill is expected to improve product quality and reduce energy consumption. It will also expand the range of steel products the company can manufacture.
Company officials said the project will increase annual sheet-steel production capacity to 3.5 million tons from 2.2 million tons. The added capacity will allow Mon Valley Works to better serve automotive and other high-value markets.
The project represents a significant increase from Nippon Steel’s original commitment. In August 2024, the company pledged at least $1 billion for Mon Valley Works. Updated projections now place the investment between approximately $2 billion and $2.5 billion.
Federal officials also praised the investment. Speaking at Monday’s announcement, Commerce Secretary Howard Lutnick said Nippon Steel has honored its commitments under the acquisition agreement.
“When steel is made here in Braddock, America is stronger. When steel workers have a strong future, this region has a strong future,” Lutnick said.
Mon Valley Works consists of three facilities: the Edgar Thomson Plant in Braddock, the Clairton Coke Works, and the Irvin Plant in West Mifflin.
The company said the new mill will be built at Edgar Thomson. It is expected to improve efficiency by eliminating the need to transport steel between facilities during production.
Construction is expected to begin later this year. The project is expected to take approximately three years to complete.