US Steel warns thousands of jobs at risk without Nippon deal
3 Min Read
The company points to "serious questions" concerning the remaining headquarters in Pittsburgh without a deal with Nippon Steel.
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Nippon Steel Corporation's logo is displayed on a sign outside its headquarters in Tokyo, on November 26, 2021. (AP)
If Nippon Steel's $14.1 billion acquisition of US Steel falls through, the business may be forced to liquidate some of its steel plants and relocate its Pittsburgh headquarters, according to a statement released on Wednesday.
"Without the Nippon Steel transaction, U. S. Steel will largely pivot away from its blast furnace facilities, putting thousands of good-paying union jobs at risk, negatively impacting numerous communities across the locations where its facilities exist, and depriving the American steel industry of an opportunity to better compete on the global stage," the announcement stated.
The statement pointed to "serious questions" concerning the remaining headquarters in Pittsburgh without a deal with Nippon Steel.
According to the statement, US Steel employees will gather at the Pittsburgh headquarters in support of the Nippon Steel merger.
CEO David Burritt previously told The Wall Street Journal that Nippon Steel's anticipated $2.7 billion investment in its older plants was vital to maintaining the company's competitiveness and jobs. Nippon has also vowed not to lay off hourly workers until 2026.
If the transaction fell through, US Steel would continue to shift output to less capital-intensive operations at an enlarged Arkansas plant that used melted scrap instead of iron ore, Burritt said. It would also close its remaining steelmaking facility in Pittsburgh and would likely relocate its headquarters south.
Burritt's comments came as Kamala Harris only Yesterday said US Steel should remain in the hands of American owners, laying another blow to Japanese firm Nippon Steel's $15 billion bid to buy the renowned American steelmaker.
During a campaign rally in Pittsburgh on Monday, drawing applause from the crowd, Harris said, “U.S. Steel should remain American-owned and American-operated."
Since it was unveiled in December, Tokyo-based Nippon Steel's proposal to purchase US Steel has been contested by the Pittsburgh-based United Steelworkers union.
The union claimed that a foreign corporation's takeover of an American steel business would jeopardize national security and questioned Nippon Steel's promises not to cut off people or close operations.
In the last 8 months, both President Biden and Republican presidential contender Donald Trump have expressed dissatisfaction with foreign ownership of US Steel.
