Nippon Steel (TYO:5401) will narrow the location for its new U.S. electric-arc furnace steelworks by June or July 2026 as U.S. Steel seeks a turnaround backed by parent capital, Nikkei reported Tuesday, citing a Nippon Steel official.

The plant targets operations from 2029, bringing large investment and new jobs to the chosen state, according to the report.

Executive Vice President Takahiro Mori said the group is evaluating profitable sites with stable power infrastructure after interest from multiple U.S. states. The parent earlier forecast an 80 billion yen profit contribution from the unit for the year to March 2026 but revised it to zero after first-half earnings, citing economic uncertainty following its $14 billion acquisition of the company in June, the report said.

Nippon Steel plans $11 billion in upgrades by 2028, including electrical steel for data-center transformers and its first overseas transfer of advanced steel technology, according to the report.

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