Nippon Steel to send more engineers to US Steel
Nippon Steel Corp. plans to send more engineers to United States Steel Corp. to make the US company more competitive through technical support, Vice Chairman Takahiro Mori said in a recent interview.
"We'll provide guidance on operational know-how," Mori said. Nippon Steel will increase the number of its engineers at US Steel to about 50 from about 40 at present.
The move is aimed at providing US Steel with the Japanese company's expertise in producing high-quality steel at low cost.
In June, Nippon Steel acquired US Steel for some 14.1 billion dollars, a deal expected to boost the Japanese company's profits by 250 billion yen by fiscal 2028.
Nippon Steel plans to make 11 billion dollars in capital investment in the US company by calendar 2028. Projects include revamping a blast furnace in Indiana and constructing a new steel mill.
"We won't delay the investment," Mori said.
US Steel "wants to learn more" from Nippon Steel after the takeover, Mori said. The political tension that flared up over the transaction was "beneficial" by helping deepen mutual understanding, he said.
Mori said separating US Steel's ownership from national security concerns helped secure US President Donald Trump's approval of the acquisition.
"You can see the goal (of negotiations) if what you cannot compromise on becomes clear," Mori said, stressing that the negotiations on the US Steel deal will "serve as a model for the future."
[Copyright The Jiji Press, Ltd.]
