Nippon Steel is considering selling off its American plants in Indiana as part of a global restructuring plan.
The Japanese steelmaker currently owns two automotive steel manufacturing units in Shelbyville and Seymour, Indiana, with annual production capacities of 36,000mt and 84,000mt, respectively. The Nippon-Sumikin plant in Shelbyville has a pickling line, four wire drawing machines, and two furnaces, while the Nippon Steel Pipe America facility in Seymour has four welded pipe machines, five cold-drawing machines, and three furnaces.
Since its partner ArcelorMittal decided to sell its assets in the US to Cleveland Cliffs, the Japanese firm intends to follow suit in order to remain profitable. According to media reports, this move will be a part of a global restructuring that will decrease Nippon’s global installed capacity by 5mn mt next year, but create an estimated $95mn in profits.