A report commissioned by U.S. Steel and released Monday projects a new hot strip mill at its Edgar Thomson Plant in Braddock along with related investments could generate up to $1.7 billion across Pennsylvania and create thousands of jobs.

Japan’s Nippon Steel, which took over U.S.Steel in June 2025 in a $14.9 billion deal, initially pledged at least $1 billion to replace or upgrade the existing hot strip mill at the Mon Valley Works. By late April, the amount of the total investment in the Mon Valley facilities had swelled to $2.4 billion.

According to Monday’s economic impact report, which updated initial projections to account for the expanded investment in the Mon Valley Works, the project could generate up to $58 million in state and local tax revenue over a three-year period.

Hot strip mills reheat thick steel slabs and roll them into thin strips or coils.

The new mill will replace an 87-year-old facility at the nearby Irvin Plant in West Mifflin, and according to the economic impact analysis commissioned by the company, the project could create more than 6,380 jobs, improve efficiency, reduce energy consumption and expand production.

The Irvin Works will continue finishing steel products, primarily for appliances.

“The Mon Valley Works is where the American steel industry was first forged, and this investment is proof that its best days are still ahead,” U.S. Steel President and CEO David Burritt said in a news release.

The economic analysis was conducted by Parker Strategy Group using projected construction and labor spending associated with the project beginning this year.

It made economic impact projections based on investments of both $2 billion and $2.5 billion.

U.S. Steel said it generated $5.6 billion in economic impact, supported about 13,680 jobs and contributed $216 million in state and local tax revenue across Pennsylvania in 2024, according to the report.

United Steelworkers District 10 Director Bernie Hall said the union sees the investments in the Mon Valley Works as a “step in the right direction.”

“We now need to ensure that this plan is fully realized, as we look to secure a long-term future for steelmaking and the communities these jobs support across Western Pennsylvania,” Hall said.

David N. Taylor, president and CEO of the Pennsylvania Manufacturers’ Association, said the investment could benefit communities across the region.

“By supporting good-paying careers and generating tax revenue to help fund schools, services and infrastructure, U. S. Steel’s commitment reaffirms Pittsburgh’s role as Pennsylvania’s industrial backbone and promises lasting benefits across the commonwealth,” Taylor said in a statement.

U.S. Steel officials said construction on the hot strip mill had not yet begun as of Monday.

The mill is expected to be completed in 2029.