DV Journal

As Wall Street hedge fund billionaires lash out over the president’s economic plans, American union steelworkers see a different picture — a financial plan to encourage U.S. investment.

The details of a U.S. Steel — Nippon Steel deal to strengthen both are still being worked out, but any deal that keeps jobs in America while encouraging foreign investment in domestic manufacturing is a good one.

The American steel industry achieved a significant boost because U.S. Steel and Nippon Steel formed an alliance, demonstrating a commitment to bringing investments back to the United States. The partnership brings fresh energy to U.S. steel manufacturing, a much-needed industry while demonstrating a strategic partnership with far-reaching effects on the American economy.

The White House announced recently that President Trump has resubmitted the deal to the Committee on Foreign Investment in the United States (CFIUS). This signals that the administration is trying to get a fair assessment of the agreement.

This would be a win for American workers and the economy. The movement toward an agreement proves Trump’s ability to secure deals that serve American interests, according to his long-standing promise. The promised $14.1 billion investment from Nippon Steel represents financial support and a dedication to developing American industry. Union members welcome this partnership that will provide employment security and industrial growth to a crucial part of the national economy.

The president supports progress toward an agreement. He highlights the opportunity for improved domestic manufacturing output and decreased dependence on Chinese imports. Investment from  Nippon Steel enables U.S. Steel to develop domestic strength in the global market while building an environment for innovation and expansion.

Nippon Steel is determined to establish a strong and productive union relationship. With a proven track record of collaboration with the United Steelworkers, Nippon Steel is committed to upholding all collective bargaining agreements and recognizing the USW as the rightful bargaining representative for its members. There will be no layoffs of USW-represented employees due to this transaction. Furthermore, Nippon Steel will maintain U.S. Steel’s compensation and benefits programs for its workforce. U.S. Steel’s union workers will significantly benefit from the resources and dedication of a larger organization focused on transforming U.S. Steel into the strongest, best and cleanest steel manufacturer in the United States.

The proposed deal will have broad effects on the U.S. economy.  The transaction between corporate titans represents a strategic business move that will reshape the future of American manufacturing operations. The merger between U.S. Steel and Nippon Steel will bring advanced technology and resources, enabling the company to expand while driving positive economic effects across various industries and their workers.

Nippon Steel operates from its Houston headquarters and has demonstrated successful operations throughout U.S. territories and worldwide markets. Its financial commitment demonstrates its belief in American industrial capabilities and its understanding of the national strategic value of domestic steel production.

The path forward looks promising. Economic arguments for opposing this agreement appear invalid because the benefits of a deal directly support a long-term economic strategy. Enhancing domestic production capacity while moving away from Chinese steel is essential to secure supply chains. Domestically produced steel’s increased availability and reliability would benefit U.S. consumers and automotive manufacturers.

The 2023 announcement of a collaboration established the foundation for this acquisition. Through its collaboration with Nippon Steel, U.S. Steel can gain access to modern technologies that will secure America’s position as an industrial leader.

The Nippon Steel-U.S. Steel agreement is a vital economic achievement. Through this foreign investment approach, the administration built a financial framework that supports industrial development alongside stability and resilience in domestic manufacturing.

The business merger represents more than a standard transaction because it functions as a change-driving force that strengthens American industrial confidence. Because of sustained backing and effective partnerships, the future of U.S. Steel and the broader American economy shows positive potential.

A century ago, the creation of U.S. Steel kickstarted a period of prosperity and manufacturing in Pennsylvania. In recent decades, that prosperity dimmed in some communities. Luckily, a new investment deal brokered by the Trump administration with Nippon Steel promises to revitalize U.S. Steel and the American steel industry at large.

Founded in 1901, U.S. Steel became the largest American business and the world’s first one-billion-dollar company. From its founding, the company began making steel in Pennsylvania’s Mon Valley. The company became so ubiquitous in American culture that many people simply referred to it as “The Corporation.” U.S. Steel was used to build American skyscrapers, bridges, stadiums and infrastructure still used today.

At the height of its success, U.S. Steel employed 340,000 Americans. Thousands of workers relied on the company for a steady paycheck to provide a home and feed their families, including Pennsylvanians from Pittsburgh and the Mon Valley.

Today, global trends have hurt U.S. Steel. Once the world’s largest steel producer, the company now ranks 24th globally. Trade practices and disinvestment have hurt the former industrial giant, with U.S. Steel now employing only 22,000 people.

However, U.S. Steel’s struggle is not irreversible. A new landmark partnership with Nippon Steel would provide the boost U.S. Steel needs to return to its former glory and become an American manufacturing powerhouse. Nippon has pledged to invest billions in U.S. Steel and supply advanced technologies to the company’s facilities. It is pledging not to lay off American workers, and its investments may create opportunities for new jobs here in Pennsylvania. With this deal, U.S. Steel will go from 24th in the world to being part of the world’s third-largest steel company.

Nippon already has a proven record of investing in American companies, including here in the Keystone State. In 2011, a Nippon firm partnered with the Pennsylvania company Standard Steel and invested $220 million. By 2022, the company turned a record profit. Nippon is one of many friendly Japanese companies that have worked with the United States to invest dollars and technology into American industries to help them better compete against our Chinese rivals. Put simply, Japan is a foreign partner we can trust.

Strengthening American partnerships is more important than ever to protect our national security and check China’s influence. We are in an age where China attempts to manipulate foreign markets and trading practices to hurt American companies. To counter those practices, we must give American companies the resources they need to compete.

With his new tariffs on steel, President Donald Trump has already provided American steel companies with well-needed relief and time to strengthen domestic industry. More work is needed. This U.S. Steel-Nippon partnership aligns with President Trump’s policies and would help an iconic American steel company become a dominant global player again. It is the only deal on the table that would allow the United States to compete with China’s steel industry.

We are at a crossroads for American manufacturing and steel production. Will we allow an iconic American company to struggle or will we welcome historic investment that brings back America’s industrial strength?

President Trump can right yet another wrong by President Joe Biden and restore American steel to greatness in the process. In doing so, he will once again demonstrate his commitment to the American working class and strengthen American industrial power for decades to come.

Amidst the challenges facing Pennsylvania’s Main Street businesses, the looming threat of job losses casts a shadow of uncertainty. As the state grapples with the future of its steel industry, the choice between preserving local jobs or succumbing to further consolidation grows ever more critical. In this pivotal moment, the entrance of Nippon Steel potentially represents a beacon of hope for Pennsylvania’s workforce.

With a commitment to preserving US Steel’s identity and honoring agreements with workers, Nippon is making a serious effort to assuage job loss concerns by committing to keeping jobs in Pennsylvania and prioritizing the well-being of local communities. According to a press release, U.S. Steel will “retain its iconic name and headquarters in Pittsburgh” if bought by Nipon Steel Company (NSC) rather than Cleveland Cliffs.

NSC said it would honor agreements with the U.S. Steelworkers Union: “All of U. S. Steel’s commitments with its employees, including all collective bargaining agreements in place with its unions, will be honored and NSC is committed to maintaining these relationships uninterrupted.”

It is not only the steel industry workers who benefit from keeping jobs in the state, family businesses of all shapes and sizes depend on steel workers as a customer base and benefit tremendously from the steel industry’s economic footprint.

The job picture in Cleveland is less clear. An article last year in Cleveland Magazine cited sources that said the Cleveland company was preparing to ship a significant number of jobs from Pittsburgh to Cleveland. The article claims: “a major tenant is gobbling up more office space. The tenant, Cleveland-Cliffs Inc., is adding hundreds of office workers to the building, a number that could reach 2,000 employees in the next few years if it is able to acquire Pittsburgh-based rival U.S. Steel. If that happens, two sources who are close to Cliffs’ executives say Cliffs will reconsider 200 Public Square as its headquarters of what would become the nation’s largest steelmaker.”

The Cleveland company’s apparent track record of consolidation paints a concerning picture of the potential consequences for Pennsylvania’s Main Street. This pattern of consolidation has left communities reeling, with Main Street businesses bearing the brunt of the fallout. Reports of potential job relocations and consolidations have sparked fear among Pennsylvania residents, who have borne witness to the devastating effects of previous mergers and acquisitions as well as the fallout from past trade deals like NAFTA.

In order to preserve Main Street jobs and preserve the fabric of Pennsylvania’s communities, Pennsylvania lawmakers should oppose any deals that are likely to move jobs out of Pennsylvania. The long-term consequences of further consolidation are clear: more job losses, more economic hardship, and more uncertainty for Pennsylvania’s Main Street. In the face of mounting challenges, Pennsylvania’s policymakers must seize this opportunity to champion the interests of their constituents. The time to act is now, for the sake of Pennsylvania’s workers, families, and communities.

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Sen. John Fetterman (D-Pa.) announced Monday he will try to block the sale of Pittsburgh-based U.S. Steel to Nippon Steel, a Japanese company.

Fetterman cited security concerns and fears that jobs will be lost if the deal goes through.

“I live across the street from U.S. Steel’s Edgar Thompson plant in Braddock. It’s absolutely outrageous that U.S. Steel has agreed to sell themselves to a foreign company. Steel is always about security – both our national security and the economic security of our steel communities. I am committed to doing anything I can do, using my platform and my position, to block this foreign sale,” Fetterman said.

“This is yet another example of hard-working Americans being blindsided by greedy corporations willing to sell out their communities to serve their shareholders. I stand with the men and women of the Steelworkers and their union way of life. We cannot allow them to be screwed over or left behind. I promise to them and to all forgotten communities across Pennsylvania that I will work with Senator Casey and the rest of the delegation to fight like hell to make this right.”

Fetterman’s fellow Democrat Sen. Bob Casey (D-Pa.) agreed.

“The United States marquee steel company should remain under American ownership,” said Casey. “From initial reports, this deal appears to be a bad deal for Pennsylvania and Pennsylvania workers. I’m concerned for what this means for the steelworkers and the good union jobs that have supported Pennsylvania families for generations, for the long-term investment in the commonwealth, and for American industrial leadership.”

U.S. Steel agreed to a $14.1 billion deal with Nippon, which is offering to buy the steel giant’s shares for $55 each. Although Nippon claims it will honor all collective bargaining agreements and keep the company in Pittsburgh, the union, United Steelworkers International, is crying foul.

Union President David McCall said, “To say we’re disappointed in the announced deal between U.S. Steel and Nippon is an understatement, as it demonstrates the same greedy, shortsighted attitude that has guided U.S. Steel for far too long.

“We remained open throughout this process to working with U.S. Steel to keep this iconic American company domestically owned and operated, but instead, it chose to push aside the concerns of its dedicated workforce and sell to a foreign-owned company.

“Neither U.S. Steel nor Nippon reached out to our union regarding the deal, which is in itself a violation of our partnership agreement that requires U.S. Steel to notify us of a change in control or business conditions,” McCall said.

“Based on this alone, the USW does not believe that Nippon understands the full breadth of the obligations of all our agreements, and we do not know whether it has the capacity to live up to our existing contract. This includes not just the day-to-day commitments of our labor agreement but also significant obligations to fund pension and retiree insurance benefits that are the most extensive in the domestic steel industry.

He called on government regulators to “carefully scrutinize this acquisition and determine if the proposed transaction serves the national security interests of the United States and benefits workers.”

The USW represents 850,000 workers.

President and Chief Executive Officer of U. S. Steel, David B. Burritt, told investors the purchase offer is a good deal.

“I couldn’t be happier with the outcome of our strategic review process, because it delivers on what is best for each of our stakeholders. And importantly, this is the best value with certainty and timeliness to close,” Burritt said.

Following the closing of the transaction, U. S. Steel will retain its iconic name, brand, and headquarters in Pittsburgh. NSC is committed to continuity in strong relationships with U. S. Steel’s suppliers, customers, the surrounding communities, and people that support U. S. Steel’s operations and is committed to being a productive member of these communities, the company said in a press release.

In an October press release, the company said, “United States Steel Corporation’s operations in Pennsylvania, which include U. S. Steel’s corporate headquarters in Pittsburgh and sites in Braddock, Clairton, Fairless Hills, Munhall, and West Mifflin, contributed $3.6 billion to the local and state economy in Fiscal Year 2022, according to an economic impact report released today. The report further concludes that the U. S. Steel’s economic activity supported or sustained 11,417 jobs.

“Bob Casey and Joe Biden have weakened America’s national security and economic standing in the world. We need to be a manufacturing country, with Americans working for American companies,” Dave McCormick, the Republican running against Casey, said on social media.

While Biden and Casey have spent most of their lives in Washington working for the government, McCormick has been in the business world as CEO of a Pittsburgh software company and, most recently, the CEO of Bridgewater, a hedge fund, as well as serving having served in the George W. Bush administration.

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