Local leaders, steelworkers react to major change in U.S. Steel-Nippon deal, "Confused and optimistic"
CLARITON, Pa. (KDKA) - Mon Valley leaders and U.S Steel employees are still trying to wrap their heads around the reworked deal between Nippon and U.S Steel.
The deal, whose details have not yet been worked out yet, would see Japan-based Nippon Steel "heavily invest" in U.S. Steel rather than purchasing it, President Trump announced Friday. In his final days in office, President Biden blocked Nippon from purchasing U.S. Steel outright on national security grounds.
"There's still a lot of questions. I mean, it's somewhat encouraging," said Clairton Mayor Rich Lattanzi. Other local leaders who have been pushing for the deal echoed a similar sentiment.
West Mifflin Mayor Chris Kelly said he sees this latest development as a positive one. He's actively working to get details on the investment, and specifically clarification on what it would mean for their communities.
Lattanzi acknowledged finding Trump's announcement "confusing.
"I mean, I've asked people, what do you think? And they said I think we're good. I think it was a win. And then other people say, hey, hold on. I'm not so sure," Lattanzi said.
He and other Mon Valley leaders we have spoken with have said the sale to Nippon is the best way to safeguard local jobs.
He wonders that if Nippon isn't buying all of U.S. Steel, will they still invest in the Mon Valley Works the more than one billion dollars they said they would last year?
It's one of multiple questions he has.
"I think we will have to wait and see," Lattanzi said. "They were going to invest $14.9 billion does that buy you more than 50% of the stock, I mean, or is it a partnership? How much say will they have?"
Also eager for more details is steelworker Andrew Macey. He has been one of the public faces of the effort to close the deal, appearing in commercials.
"I believe this is the best of both worlds, I really do," referring to how he believes the new proposed deal keeps U.S. Steel an American company while also bringing much-needed funding to the Mon Valley Works. "What President Trump said today, as far as an investment, that's what we wanted."
He was one of a group of Steelworkers who went on stage with Trump at his October rally in Latrobe, encouraging him to support the deal.
"Our voice, the rank and file, I believe made a difference, the people who were for this, their voices were heard," Macey said.
The deal comes the day Trump met with the Prime Minister of Japan. The previous day, Trump spoke with the CEO of U.S. Steel, David Burritt, multiple sources told KDKA-TV.
Trump had previously said he would block the deal.
United Steelworkers also shared a statement Friday afternoon. They have been against the deal.
"Our concerns regarding Nippon's continued interest in U.S. Steel remain unchanged," said International President David McCall. "Nippon has proven itself to be a serial trade cheater with a history of dumping its products into our markets. While we await the details of the proposed investment, we encourage President Trump to continue safeguarding the long-term future of the domestic steel industry by instead seeking American alternatives."
The head of Nippon is meeting with Trump next week to work out the details of the deal.
