【Kyoei Steel】Revised US Investment Plan | July 2026

Overview of Investment Plan

Kyoei Steel has increased its total investment in the construction of a new steelmaking plant and major renovation of its rolling mill at its US subsidiary Vinton Steel LLC to 437 million US dollars. Rising inflation and logistics costs have exceeded the previous announced amount, and operation of the new steel plant is scheduled for July 2027. This aims to improve productivity and stabilize earnings in the North American business. Techint E&C is responsible for design and engineering, and funding will be sourced from internal funds and loans. The project is expected to proceed as planned, with financial indicators also maintained.

Future Outlook and Corporate Activities

This investment aims to establish a core manufacturing plant utilizing the world's first direct billet welding and rolling technology in North America, with construction beginning in July 2026 and the new plant scheduled to start operations in July 2027. Although increased investment will lead to short-term cost increases, it is expected to contribute to long-term productivity gains and earnings stability. Additionally, the recent changes are projected to maintain financial KPIs such as the equity ratio and net D/E ratio.