Steelworkers Vow to Keep ‘US Steel US Owned’ as Foreign Giant Gobbles Up American Industry
Nippon Steel Corp. raised its capital commitment Thursday by more than $1 billion to spend on U.S. Steel plants amid entrenched political and labor opposition to the Japanese company’s nearly $15 billion acquisition of the iconic American steelmaker.
Nippon Steel’s $1.3 billion commitment to upgrade facilities in Pennsylvania and Indiana is on top of an earlier commitment to spend $1.4 billion.
The announcement was lauded by David Burritt, U.S. Steel’s president and CEO, as evidence of Nippon Steel’s desire to “complete the transaction and expand U.S. Steel.” The United Steelworkers dismissed it as “lip service.”
The sale comes during a tide of renewed political support for rebuilding America’s manufacturing sector, a presidential campaign in which Pennsylvania is a prime battleground, and a long stretch of protectionist U.S. tariffs that analysts say has helped reinvigorate domestic steel.
In its statement, Nippon Steel said it will spend at least $1 billion to upgrade the hot strip mill at the Pittsburgh-area Irvin Plant, along with other facilities in Pennsylvania’s Mon Valley Works, and about $300 million to improve one of the blast furnaces at Gary Works in Gary, Indiana.
The commitments “far exceed” what Pittsburgh-based U.S. Steel would pledge on its own and will help make the company and the American industry stronger and more competitive, Burritt said.
“The bottom line is these are investments in the future of integrated American steel-making and the employees, families and communities that rely on it,” Burritt said in a statement
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