U.S. Steel releases economic impact analysis on Nippon Steel deal

U.S. (X) released a new economic impact analysis today, conducted by Parker Strategy Group, that assesses how the proposed $1B investment committed by Nippon Steel Corporation (NPSCY) to modernize U. S. Steel’s Mon Valley Works following the closing of the pending merger with U. S. Steel would generate a significant economic impact in Pennsylvania. According to the study, if just 80% of the $600 million construction project is spent in Pennsylvania, the Nippon Steel investment would generate a $952.9M incremental economic impact over a two-year timeframe. Among the findings, the study showed concentrated economic impact to Southwest Pennsylvania and increased impact if construction dollars are spent in Pennsylvania. “Not only will this deal secure U. S. Steel’s Pennsylvania footprint – an economic boon benefiting communities and employees – the Nippon Steel investment in Mon Valley Works facilities would cause a positive ripple effect across the Pennsylvania economy,” said President and CEO of U. S. Steel David B. Burritt. “While the economic impact is undeniable, what is most heartening is the consequential economic and generational impact this investment will have on the families and communities of the Mon Valley.” The study predicts that when just 40% of the investment is spent in state it would create nearly 2,500 jobs and generate an almost half billion-dollar economic impact — 2,432 jobs, $476.4M total impact — over a two-year period.