U.S. Steel warns Pittsburgh headquarters and thousands of jobs are in jeopardy without sale to Nippon
PITTSBURGH (KDKA) -- U.S. Steel says it may have to move its headquarters from Pittsburgh and thousands of union jobs could be at risk if its sale to the Japanese company Nippon Steel fails.
President Biden has promised to keep U.S. Steel an American company, a position echoed by both presidential nominees Vice President Kamala Harris and former President Donald Trump. But in a press release Wednesday, the company warned that the sale falling through could detrimentally impact Pittsburgh and the American steel industry.
While elected leaders and the United Steelworkers union have opposed the deal, the company says some employees will be rallying in support of the sale at the U.S. Steel Tower in Pittsburgh on Wednesday.
"Today's rally is about displaying support for the transaction with Nippon Steel. We want elected leaders and other key decision makers to recognize the benefits of the deal as well as the unavoidable consequences if the deal fails," said U.S. Steel CEO David Burritt in a news release.
Without the sale, U.S. Steel says it will "largely pivot away" from its blast furnace facilities, putting thousands of union jobs at risk. U.S. Steel also says the lack of a deal with Nippon "raises serious questions" about keeping its headquarters in Pennsylvania, where the company says it supports over 11,000 jobs and generates $3.6 billion in total economic impact a year.
Burritt has said in the past that if the sale to Nippon Steel goes through, U.S. Steel would keep its name and remain headquartered in Pittsburgh.
U.S. Steel's sale to Nippon faces growing opposition
When Harris visited Pittsburgh on Labor Day, she said U.S. Steel "should remain American-owned and American-operated," saying it's "vital for our nation to maintain strong American steel companies." But without a sale, U.S. Steel said the American steel industry would be deprived of an opportunity to better compete globally.
At the event Monday, United Steelworkers International President David McCall threw the union's support behind Harris, saying a sale to Nippon would violate their collective bargaining agreement with U.S. Steel.
"But more importantly, it's very important to national defense and critical supply chain that we keep making steel in America in blast furnaces," McCall said.
In response to Harris' remarks, U.S. Steel released a statement saying it'll be a "much stronger company" as a result of the sale and the American steel industry will be "more globally competitive." The company also said Nippon Steel has committed to investing nearly $3 billion in union-represented facilities.
While Trump took Labor Day off from the campaign trail, he has also vowed to block the deal if elected.
The $15 billion sale to Nippon Steel, Japan's largest steelmaker, was announced in December. It faced immediate opposition from the union, local leaders and both of Pennsylvania's Democratic senators.
Amid questions about the merger's future, the Committee on Foreign Investments said it hasn't yet made a recommendation to the president.