Nippon Steel (TYO:5401) will invest $11 billion in U.S. Steel by 2028 to strengthen its U.S. operations and counter tariff pressures, Nikkei reported Thursday, citing Executive Vice President Takahiro Mori.

The plan includes building facilities in Arkansas to produce grain-oriented electrical steel sheet - its first overseas transfer of the technology - and upgrading plants in Indiana and Pennsylvania, according to the report.

The company revised down its profit forecast for the year ending March 2026 to a 60 billion yen net loss from a previously projected 40 billion yen loss, citing the exclusion of U.S. Steel's earnings. It posted a 350.2 billion yen profit a year earlier, the report said.

Mori said tariffs are creating uncertainty but expects domestic demand in the U.S. to recover by 2026. Nippon Steel is also consolidating operations in Japan and expanding in India through its ArcelorMittal joint venture, according to the report.

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