U.S. Steel Outlines $14 Billion Capital Growth Plan

Written by Brian Ford, Editor-in-Chief for Industrial Info Resources (Sugar Land, Texas)

Summary

U.S. Steel announced a $14 billion, multi-year growth plan, with $11 billion to be invested by the end of 2028. Nippon Steel acquired U.S. Steel in June.

Big Plans for U.S. Steel

U.S. Steel (Pittsburgh, Pennsylvania) outlined a plan on Tuesday that includes $14 billion in growth capital, including $11 billion to be invested by the end of 2028. In June, U.S. Steel was acquired by Nippon Steel (Tokyo, Japan) for $14.9 billion in a deal that included the U.S. government having a "golden share" in U.S. Steel. For more on that, see June 17, 2025, article - Trump Approves Nippon Steel-U.S. Steel Deal.

"We have a robust pipeline of growth projects, ranging from the modernization of our Gary Works Hot Strip Mill to the new slag recycler at Mon Valley Works and the development of new product capabilities," said U.S. Steel Chief Executive Officer Dave Burritt in a press release.

At the 7.5-million-ton-per-year Gary Steel Works in Indiana, the modernization project consists of upgrading the hot strip mill to optimize production costs and expand premium product offerings, including heavy gauge line pipe and automotive steel. U.S. Steel's board of directors approved the project in September. Gary Works is U.S. Steel's largest manufacturing plant, situated on the south shore of Lake Michigan in Gary, Indiana. It comprises both steelmaking and finishing facilities. Subscribers to Industrial Info's Global Market Intelligence (GMI) Project and Plant Metals & Minerals databases can view the project report and plant profile.

Located in Braddock, Pennsylvania, the slag recycling addition at the 2.9 million-ton-per-year Mon Valley Works - Edgar Thomson Steel Works is planned to kick off in mid-2026, with completion in late 2027. A slag recycler helps give new life to the byproducts of steelmaking, such as providing ingredients for cement. Subscribers can view the plant profile here.

By the Numbers

• $14 billion: The cost of U.S. Steel's multi-year growth plan.
• $11 billion: The amount of money to be invested by the end of 2028.
• $14.9 billion: The price paid by Nippon Steel to acquire U.S. Steel.

On Monday, U.S. Steel announced a project to install a new premium thread line at its Fairfield Tubular Operations in Alabama. The Fairfield site specializes in producing high-quality steel pipe and tube products--primarily serving the energy sector, including oil and gas customers. The complex includes an advanced electric arc furnace and rounds caster that feeds the Fairfield Tubular Operations. The project report can be viewed here, and the plant profile can be viewed here.

U.S. Steel is targeting $3 billion in annual earnings before interest, taxes, depreciation and amortization (EBITDA). It anticipates $2.5 billion in returns each year from its capital investments.

Key Takeaways

• U.S. Steel plans to spend billions on upgrades, expansions and modernizations.
• This comes months after U.S. Steel's acquisition by Nippon Steel.
• Gary Works is U.S. Steel's largest manufacturing plant.

Subscribers can view all U.S. Steel capital project reports.

About Industrial Info Resources

Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 Trillion (USD).