Japan's JFE Steel eyes possible US expansion after Nippon Steel deal

JFE Holdings

20/12/2023 06:18

TOKYO, Dec 20 (Reuters) - Japan's No. 2 steelmaker JFE
Steel is interested in expanding operations in the U.S., its
president said on Wednesday, noting ties between the countries'
steel industries would deepen in the wake of rival Nippon
Steel's acquisition of U.S. Steel.
    Nippon Steel  5401.T , Japan's top steelmaker, clinched a
deal on Monday to buy Pittsburgh-based U.S. Steel  X.N  for
$14.9 billion in cash, prevailing in an auction for the
122-year-old iconic steelmaker over rivals such as
Cleveland-Cliffs  CLF.N , ArcelorMittal  MT.LU  and Nucor
 NUE.N .
    For JFE, the flagship unit of JFE Holding Inc  5411.T , the
U.S. steel market looks also attractive as demand is expected to
steadily grow, JFE Steel President Yoshihisa Kitano said at a
news conference.
    "The U.S. steel business is expected to grow... with solid
demand growth anticipated from automobile sector," Kitano said.
    He also said there were several parts of the U.S. market
where steelmakers could generate solid earnings from the
perspective of economic security.
    "If there is an opportunity, we would like to consider
(expanding) while assessing what kind of business areas present
opportunities," Kitano said.
    But he added there was no concrete plan to boost investment
in the U.S. at the moment.
    Kitano, who is also the chairman of the Japan Iron and Steel
Federation, declined to comment on the deal in his capacity as
the head of the industry group.
    But he said, as a personal opinion, the successful 
acquisition by Nippon Steel was expected to deepen collaborative
efforts between the U.S. and Japanese steel industries,
including initiatives toward carbon neutrality.    

 (Reporting by Yuka Obayashi; Editing by Jamie Freed)
 ((Yuka.Obayashi@thomsonreuters.com; +813-4563-2761; Reuters
Messaging: yuka.obayashi.thomsonreuters.com@reuters.net))