Steel Mills
Wilbur Ross says USS sale to Nippon isn’t a security threat
Written by Laura Miller
January 2, 2024
Wilbur Ross doesn’t believe the proposed sale of U.S. Steel to Japan’s Nippon Steel poses any threat to the economic or national security of the US.
Wilbur L. Ross Jr., the business tycoon and former US secretary of commerce, has instead said, “There is no real cause for concern other than xenophobia…” in a New Year’s op-ed in the Wall Street Journal.
He said objections or concerns from politicians are due to 2024 being an election year. Recall that a number of politicians on both sides of the aisle have spoken out with their concerns on the proposed takeover of the iconic Pittsburgh-based steelmaker by a foreign-owned entity.
In the op-ed, Ross said national security could be a real threat if American mills were closing because of unfairly subsidized Japanese exports to the US. But this isn’t the case, and “There’s nothing in the deal from which the US needs defending. Attacks by Washington pols only create unnecessary geopolitical tensions, and those, not the acquisition itself, could endanger American national security,” Ross wrote.
Ross added that Japan is a major ally of the US, ranking first in terms of foreign direct investment in the US.
To close, Ross pointed out that no concerns were expressed in 2005 when he sold the International Steel Group (ISG) to India’s Lakshmi Mittal, nor when Russia’s Severstal bought the bankrupt Rouge Steel in 2004.
Another view
In another Jan. 1 op-ed, this one in The Washington Times, another former government official offered an alternative view on the national security issue of the U.S. Steel sale.
Manisha Singh, an attorney who served as assistant secretary of state for economic and business affairs for the Trump administration, wrote that lessons learned from the pandemic should be remembered.
“The inability to procure emergency goods here was traced back to America’s excessive reliance on China,” Singh said, noting that US officials pleaded with allies during the pandemic for medical supplies to save American lives. However, “Even friendly partner nations were unable to meet American requests due to their own exigent circumstances,” she pointed out.
Additionally, with Trump’s invocation of Section 232 of the Trade Expansion Act of 1962, “It was determined that [global steelmaking] overcapacity hindered the ability of domestic producers to meet the needs of domestic defense,” she wrote.
“The US military falls short of the strategic numbers of equipment previously identified to maintain “peace through strength,” much less prevail if attacked. To build back full military capacity in order to meet existential defense needs, relying on anyone else, even an ally, compromises the national security of the American people,” Singh said.
Singh’s op-ed allows one to imagine how America’s national security could be at threat in the future should Nippon Steel purchase U.S. Steel now: Imagine if “regional conflicts spark a global catastrophe in which America requires large amounts of steel to build weapons and infrastructure for the defense of its citizens. Simultaneously, Japan, currently with far less military equipment than the United States, needs the same,” she wrote.

Laura Miller
Read more from Laura MillerLatest in Steel Mills

Millett sees tariffs, CORE case benefiting SDI
Steel Dynamics' top exec thinks Trump’s tariff policies, as well as the results from the recent CORE case, will prove advantageous to the Fort Wayne, Ind.-based steelmaker and aluminum company.

USW digs in on opposition to USS-Nippon deal
“We remain deeply concerned about the national and economic security implications of the subject transaction,” the union stated in the letter dated April 21.

SDI’s Q1 earnings slump on-year, but up sequentially
SDI earnings slip in first quarter year over year, but are up sequentially.

POSCO inks MoU with Hyundai on Louisiana EAF mill
POSCO has signed a Memorandum of Understanding (MoU) with Hyundai Motor Group that includes an equity investment in Hyundai’s previously announced EAF mill set to be built in Louisiana.

CRU: Tata Steel looks to shed 1,600 jobs in the Netherlands
The company said, “The challenging demand conditions in Europe driven by geopolitical developments, trade and supply chain disruptions and escalating energy costs have affected the operating costs and financial performance."