June 18, 2025 – Today a new global powerhouse in electrical steel emerges as Nippon Steel successfully finalized its acquisition of US Steel. Both companies are significant producers of electrical steel sheets, prized for their magnetic properties that enhance the performance of motors, generators and transformers. As leading global producers of many types of steel, together they operate a network of massive production facilities worldwide. Nippon immediately dispatched 40 executives to US Steel to facilitate the integration.
Valued at about $15 billion, the deal is being characterized by the companies as a partnership which ensures that U. S. Steel will retain its iconic name and headquarters in Pittsburgh, Pennsylvania. It was consummated after intense legal and political wrangling over concerns of non-American ownership of US Steel and competition with other American steel producers, notably including Cleveland-Cliffs which also is a significant producer of electrical steel. A “golden share” of US Steel stock issued to the U.S. government which carries national security and investment restrictions, along with execution of a National Security Agreement, helped clear the way to resolution. Nippon has also pledged to make about $11 billion in new investment in US Steel by 2028.
Electrical steel figures as an important growth sector for both companies. At US Steel, the activity centers around a major expansion at Big River Steel Facility in Arkansas, as recently reported in Magnetics Magazine. There, it produces its new line of Indux electrical steel.
At Nippon Steel in Japan, expansions were recently made to its electrical steel sheet facilities in the Setouchi Works Hirohata, increasing the manufacturing capacity by about 40% to meet growing demand in electrification.
For more info, see www.nipponsteel.com and www.uss.com.
