United States Steel Corporation (NYSE: X) (“U. S. Steel”) released a new economic impact analysis today, conducted by Parker Strategy Group, that assesses how the proposed $1 billion investment committed by Nippon Steel Corporation (“Nippon Steel”) to modernize U. S. Steel’s Mon Valley Works following the closing of the pending merger with U. S. Steel would generate a significant economic impact in Pennsylvania.

For the purposes of the study, construction ($600 million) and equipment costs ($400 million) are separated and it is assumed that $600 million of the $1 billion investment would be spent in Pennsylvania.

Considering the supply chain and labor realities that would reduce in-state spending for any major construction project in the Mon Valley, the study looked at a range of spending scenarios.

According to the study, if just 80% of the $600 million construction project is spent in Pennsylvania, the Nippon Steel investment would generate a $952.9 million incremental economic impact over a two-year timeframe.

Nippon Steel is committed to investing no less than $1 billion in the Mon Valley Works operations following closing of the transaction to extend the production life of integrated assets and enhance the security of steel supply to American manufacturers. Together with the previously announced $1.4 billion capital expenditures in BLA-covered facilities, these investments are strong commitments to the region and union-represented facilities that go well beyond what is currently required by the Basic Labor Agreement.

Among the findings, the study showed concentrated economic impact to Southwest Pennsylvania and increased impact if construction dollars are spent in Pennsylvania.

“Not only will this deal secure U. S. Steel’s Pennsylvania footprint – an economic boon benefiting communities and employees – the Nippon Steel investment in Mon Valley Works facilities would cause a positive ripple effect across the Pennsylvania economy,” said President and Chief Executive Officer of U. S. Steel David B. Burritt. “While the economic impact is undeniable, what is most heartening is the consequential economic and generational impact this investment will have on the families and communities of the Mon Valley.”

The study predicts that when just 40% of the investment is spent in state it would create nearly 2,500 jobs and generate an almost half billion-dollar economic impact (2,432 jobs, $476.4 million total impact) over a two-year period.