Nippon Steel's American Ambitions: Relining Approval Raises Questions

ACCR is commenting on U.S. Steel’s decision to approve the US$350 million relining of Blast Furnace No. 14 at Gary Works in Indiana, the United States of America. The decision follows Nippon Steel Corporation’s acquisition of U.S. Steel in 2025 and locks in approximately 90 MtCO2 of emissions if the blast furnace operates for a full 20-year campaign life. In 2024, Nippon Steel committed approximately $US300 million to relining the No. 14 Blast Furnace ahead of acquiring U.S. Steel. Commenting on the decision, Martin Norman, Investor Engagement Lead, ACCR said: “With coal-free steelmaking an increasingly important factor in the American steel market, the decision to reline Blast Furnace No. 14 at Gary Works raises concerns for investors, who do not have clarity over U.S. Steel and Nippon Steel’s plans for managing the U.S. Steel blast furnaces imminently due for relining. “Technology improvements from Japan that will increase efficiency are welcome, but decarbonisation targets from Japan also need to be brought to U.S. Steel. Decarbonisation targets for overseas assets should match domestic targets, with comprehensive transition plans outlining U.S Steel’s path to decarbonisation success. “While Nippon Steel has expanded its decarbonisation ambitions by investing domestically in commercially ready solutions with significant emissions reduction potential, investors should engage constructively and critically with the company to ensure it applies a similar or greater level of ambition to the U.S. Steel assets. “It is crucial that U.S. Steel secures its current and future competitiveness in an Americal steel market where low-carbon steel is already financially significant. Nippon Steel’s management of the U.S. Steel blast furnaces is a critical gauge of its ability to manage its whole portfolio’s emissions that investors need to watch closely.”