Mon Valley mayors applaud U.S. Steel-Nippon Steel deal
The deal is done. U.S. Steel and Nippon say they've finalized their partnership. The promise is to keep their headquarters in Pittsburgh along with thousands of jobs.
While some of the details are still limited, according to municipal leaders in the Mon Valley, plants should get investments, making them better for the environment and community development.
Mon Valley mayors: "This is a great day"
A U.S. Steel spokesperson said under the deal, there will be no decreases to steel production at the Mon Valley Works for at least 10 years and no job losses as a result of the transaction.
"Everything I can see, it's a great move for the country and the community," West Mifflin Mayor Chris Kelly said.
The companies say Nippon will make about $11 billion in new investments in U.S. Steel by 2028, including an initial investment in a greenfield project. A majority of the board of directors will be U.S. citizens, as well as key management personnel, including the CEO.
The companies also say U.S. Steel "will maintain capacity to produce and supply steel from its U.S. production locations to meet market demand" in the U.S., and that Nippon won't interfere with U.S. Steel's ability to pursue trade action under U.S. law.
According to U.S. Securities and Exchange Commission filings, U.S. Steel will be a wholly owned subsidiary of Nippon Steel.
"This is a great day for all of us," North Braddock Mayor Cletus Lee said.
The deal also comes with a "golden share" to the U.S., giving the government the right to appoint an independent director and giving the president consent rights on certain issues like reducing the committed capital investments under the National Security Agency and transferring production jobs outside of the United States.
"I think this is going to give everybody a peace of mind to say, 'You know what, U.S. Steel and Nippon's going to be here.' This mill is going to be an asset to the community," said Clairton Mayor Richard Lattanzi. The Coke Works make up 30% of Clairton's tax base.
United Steelworkers union vows to hold Nippon to its commitments
In a statement, the United Steelworkers union said they feel their concerns have been continually downplayed but they are determined to hold Nippon to its commitments. The union's current agreement expires in September 2026.
"Rest assured, if our job security, pensions, retiree health care or other hard-earned benefits are threatened, we are ready to respond with the full strength and solidarity of our membership," the union said.
