United States Steel Corporation (US Steel) has released a new economic impact analysis that assesses how the proposed $1 billion investment committed by Japanese steelmaker Nippon Steel Corporation to modernize US Steel’s Mon Valley Works would generate a significant economic impact in Pennsylvania. The analysis is based on a $600 million spend on construction.
The study predicts that, when just 40 percent of the investment is spent in the state, it would create 2,432 jobs and generate a total economic impact of $476.4 million, while when 80 percent of the project costs are spent in Pennsylvania, the impact increases dramatically, doubling the number of jobs created (4,864 jobs) and generating $952.9 million in economic impact, both over a two-year period. In addition, after 100 percent of the investment is spent in Pennsylvania, 6,080 jobs will be created and a $1.2 billion economic impact will be generated.
“The Nippon Steel investment makes possible a generational upgrade at the Mon Valley Works facilities that will only occur if the transaction closes,” Scott Buckiso, US Steel’s senior vice president and chief manufacturing officer, North American flat rolled segment, said.