Nippon Steel plans to invest up to $2.5 billion to modernize U.S. Steel’s Mon Valley Works near Pittsburgh, a major commitment that company executives say will preserve steelmaking operations for decades at a facility once considered at risk of closure.

The Tokyo-based steelmaker announced Monday that it intends to replace the aging hot-strip mill that serves the Mon Valley complex, a three-plant operation south of Pittsburgh that has long been a cornerstone of the region’s steel industry. Construction is expected to begin later in 2026 and take about three years to complete.

The project marks a dramatic turnaround for a facility whose future appeared uncertain just two years ago.

In 2024, U.S. Steel warned that without Nippon Steel’s proposed acquisition, steelmaking operations at Mon Valley could cease and the company could move its headquarters out of Pittsburgh. The warning became a focal point in the contentious political and regulatory battle over Nippon Steel’s bid for the iconic American steelmaker.

“The Mon Valley project will go a long way to make people feel like there’s a future here,” U.S. Steel CEO David Burritt told The Wall Street Journal.

“We’ve got great partners with Nippon Steel. These investments would not have been able to happen without it.”

Burritt told The Pittsburgh Post-Gazette: “This investment is proof that [U.S. Steel’s] best days are still ahead. This investment means thousands of good-paying jobs protected, a world-class facility, and steel that will supply American automakers and manufacturers for generations.”

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