U.S. Steel CEO: Nippon enables $3 billion investment

The partnership between U.S. Steel and its new owner, Japan-based Nippon Steel, is allowing U.S. Steel to advance a $3 billion investment at its Big River Steel Works complex in Osceola, the company’s president and CEO, David Burritt, said Tuesday (Nov. 18).

Burritt made the comments at the 97th annual meeting of the Arkansas State Chamber of Commerce and Associated Industries of Arkansas, and in remarks to reporters afterwards.

The $3 billion investment will allow the company to build a direct reduced iron plant that will use iron pellets to produce feedstock for its electric arc furnaces in Osceola.

In addition, the company will manufacture grain-oriented steel used for transformers, electric motors, and critical energy and industrial projects.

Burritt said the company has the permits for the projects but has not yet broken ground. He said it has a “legally binding national security agreement” to spend or commit to it by the end of 2028.

Burritt said the expansions are possible because of the acquisition of U.S. Steel by Nippon Steel. He and Chief Operating Officer Dan Brown said Nippon Steel is providing technical expertise and big investments.

The acquisition was finalized in June. Nippon Steel has had staff members on site since July.

“I would tell you that they’ve probably fast-forwarded our technology and our learning curve — we’ve probably picked up six months with Nippon already,” Brown told reporters. “They’ve made huge strides, and they’ve been great to work with with our own Big River Steel team members.”

Burritt told reporters afterward that the acquisition came despite the opposition of former President Joe Biden and the initial opposition of President Donald Trump. U.S. Steel sued the Biden administration.

Trump allowed the merger to advance with preconditions after an Oval Office meeting. Nippon agreed to invest an additional $11 billion in U.S. operations and also agreed to a national security agreement and “golden share” provision. The provision gives the federal government the ability to appoint at least one board member and have input on domestic steel production decisions.

Asked about the impact of tariffs on the company’s plans, Burritt said, “This investment is being made possible because of the strong support we have from President Trump to approve the deal, and the commitment to excellence and the investment in the United States by Nippon. Those are the really key things. Those were the game changers. And yes, tariffs do help when applied appropriately, but the main thing for us was the president’s approval and then Nippon never giving up on this deal.”

In his speech, Burritt said U.S. Steel has already invested $7 billion in Arkansas in the Big River Steel Works complex. That includes the Big River Steel facility it acquired in 2021, and the Big River 2 plant it built afterward. Company officials knew soon after acquiring Big River Steel that it would need to build an additional plant. After a nationwide search for a location, it decided to build Big River 2 next to the existing plant.

It opened that plant this year after 28 months of construction. Burritt said it’s the largest private investment in Arkansas history and the largest in U.S. Steel’s history.

By 2026, the company plans for Big River 2 to be operating at full capacity. The company will have 6 billion tons of production capacity between the two plants.

“By then, Big River 2 will be humming at full capacity,” Burritt said. “The Nippon Steel partnership will be fully integrated. And the story we’re writing here in Arkansas will be recognized around the world as a model for sustainable, profitable, purpose-driven manufacturing.”

He said U.S. Steel has created nearly 5,000 jobs, built relationships with 500 vendors, and paid more than $45 million in state and local taxes. In 2024, it invested $2.5 million in schools, hospitals, first responders and community programs. Mississippi County’s “Work Here. Live Here.” campaign has allowed more than 100 families to buy or build their first homes.

Burritt praised Arkansas as a good place for his company to operate. Mississippi County now is the No. 1 steel-producing county in the United States.

“Let me put it this way,” he said. “If every state did business the way Arkansas does, this whole country would be running on steel and common sense.”