Alabama set to benefit from U.S. Steel’s $11 billion national expansion

Alabama’s steel industry stands to benefit significantly from the newly finalized $14.9 billion acquisition of U.S. Steel by Japan-based Nippon Steel Corporation.

The historic partnership, officially announced on June 18, is expected to lead to substantial investments in domestic steel operations, including as much as $500 million allocated for improvements at U.S. Steel’s Fairfield facility in Jefferson County.

According to the official press release issued by U.S. Steel, the combined companies plan to invest approximately $11 billion across U.S. Steel’s American operations by 2028.

The investment is part of a broader strategy to enhance steel production capabilities while maintaining U.S. Steel’s identity as an American company headquartered in Pittsburgh.

The Fairfield site in Alabama is one of several key locations named for upgrades. The $500 million projected for the facility will focus on tubular product improvements, potentially strengthening Alabama’s role in supplying steel to the energy and construction sectors.

The company’s existing infrastructure in Fairfield already includes a $412 million electric arc furnace, launched in 2020, with an annual production capacity of 1.6 million tons.

In addition to direct investments, the merger is expected to protect and create more than 100,000 jobs across the U.S., according to a study commissioned by U.S. Steel and referenced in its press release.

While the total number of jobs specific to Alabama has not been released, the Fairfield plant and surrounding suppliers may benefit from job stability and potential expansion as modernization efforts ramp up.

President Donald Trump said that Alabama would be part of a $7 billion allocation to modernize steel mills and build new production facilities in several states, including Indiana, Minnesota, and Arkansas.

U.S. Steel has longstanding roots in Alabama. At its peak, the company employed around 15,000 people in Birmingham. The new investment signals continued relevance for the state’s steel sector amid global competition and shifting domestic demand.

The merger also includes a national security agreement with the U.S. government, ensuring that U.S. Steel remains an American-incorporated company, led by U.S. citizens, and continues to produce steel domestically. Under this agreement, the U.S. government holds a “golden share,” allowing it to approve or block changes related to capital investment, production location, and workforce movements.

With global steel production capacity now at 86 million tons annually, the Nippon Steel Group aims to strengthen its international footprint. Alabama’s inclusion in the investment rollout positions the state to play a vital role in this next chapter for the U.S. steel industry.

Sherri Blevins is a staff writer for Yellowhammer News. You may contact her at [email protected].