Nippon Steel Merger with U.S. Steel to Boost Jobs, Economic Growth in Western Pennsylvania  

Labor Landscape

Japan’s Nippon Steel has finalized its $14.9 billion takeover of U.S. Steel and promises to boost jobs and economic growth in western Pennsylvania.  Most notably, the pact calls for Nippon to invest $11 billion in the U.S. steel facilities through 2028 and gives the U.S. president vast authority to veto major business decisions.  

“This is a great decision for all of the Mon Valley and Western Pennsylvania,’’ said Louis Ransom , business manager of Braddock Borough.  “The merger is a huge boon for our 1,700 residents and our long history with steel production,’’ said Ransom.  

Braddock’s industrial economy began in 1873, when Andrew Carnegie built the Edgar Thomson Steel Works on the historic site of Braddock’s Field in what is now North Braddock, Pa.  It was the first steel mill to use the Bessemer process in America.  

U.S. Steel and Nippon agreed to merge in December 2023, but a tortured political process kept that from happening right away. The deal has withstood two national security reviews, relentless attacks by the United Steelworkers Union and a block from former President Joe Biden.  

President Donald Trump, who was once a vocal opponent of selling U.S. Steel to a foreign country, rescued the merger this summer by blessing the partnership between the American manufacturer and Nippon, first on social media and later during a rally at the Irvin Works steel processing plant in West Mifflin, Pa.   

“This is a deal that will save U.S. Steel which has been underfunded for years,’’ said Robert Strauss, a professor of economics and public policy at Carnegie Mellon University.  “Steel making has such historical significance in this region and provides so much lifeblood to the communities near the mills,’’ he added. 

“We are hoping that news of this merger will promote more home building and business growth in our Braddock community,” said Ransom.  

Nippon’s commitments include keeping U.S. Steel headquarters in Pittsburgh, appointing American citizens to top U.S. Steel management positions and a majority of board seats, keeping U.S. Steel production high enough to meet domestic demand and allowing U.S. Steel to pursue trade  action against foreign countries for illegal dumping.  The U.S. federal government can also block Nippon from reducing pledged capital investment, changing U.S. Steel’s name, incorporating U.S, Steel outside the country , transferring jobs from the country, acquiring competing businesses and in some cases, closing existing facilities.   

Almost  all U.S. Steel workers can expect a $5,000 closing bonus by Nippon. United Steelworkers International President David McCall said  he will continue to watch the merger and hold Nippon to its commitments. “We will use the most powerful tool workers have against global competition: collective bargaining,’’ McCall added. 

Still, not all western Pennsylvania residents are happy about the merger.  The Breathe Project, a Pittsburgh-based environmental group, called on U.S. Steel and Nippon “to end the ongoing, severe , negative impacts in Mon Valley communities” caused by emissions from outdated steel plants.   

U.S. Steel  has a long history of fines and settlements related to pollution from the Mon Valley Works totaling nearly $64 million since the start of 2020, according to the Breathe Project.  

Nippon is Japan’s largest steelmaker. U.S. Steel is a top player in its respective market, although the U.S.  makes up a small portion of global steel production. The merger consolidates Nippon’s position as one of the world’s preeminent steelmakers.  

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