US Steel warns plants could close without Nippon sale

NEW YORK - United States Steel warned on Sept 4 it could shut its headquarters and factories in Pennsylvania, a key swing state in the upcoming election, if a takeover by Japan’s Nippon Steel is blocked.

Both Kamala Harris and Donald Trump have

come out against the sale

as they campaign to win the White House.

But US Steel planned a staff rally later on Sept 4 in support of the takeover.

“We want elected leaders and other key decision makers to recognise the benefits of the deal, as well as the unavoidable consequences if the deal fails,” said company chief David Burritt.

In December, US Steel

sealed a US$14.9 billion (S$19.4 billion) agreement

to sell itself to Japan’s Nippon Steel, which has promised investments to keep Pennsylvania factories competitive with foreign producers and newer “mini mills” in the American South.

But the transaction, which has been denounced by the United Steelworkers (USW) union, has

proven a tough sell politically

with both the Democratic and Republican parties fighting against it.

On Sept 2, during a Labour Day event in Pittsburgh, Vice-President Kamala Harris mirrored President Joe Biden’s stance, declaring that US Steel “should remain American owned and American operated.”

Former president Donald Trump has also vowed to block the deal, while his running mate J.D. Vance, has led congressional opposition to the takeover, describing domestic steel production as a national security priority.

US Steel has argued that the Nippon deal is needed to ensure sufficient investment in its Mon Valley plants in Pennsylvania, the earliest of which dates to 1875.

Nippon has promised to keep the plants open and invest US$1.4 billion in USW-represented facilities through 2026 when the current labour contract expires.

The company has also

vowed to keep US Steel’s 1,000-worker office

in downtown Pittsburgh. AFP