Harris opposes USS sale to Nippon Steel

The United Steelworkers (USW) union cheered the speech by Harris. That matters because the union is a key constituency in Rust Belt swing states – notably Pennsylvania, a state both Harris and Trump will likely need to win to become the next president.

USW applauds Harris

“U.S. Steel is an historic American company. And it is vital for our nation to maintain strong American steel companies,” Harris said.

“I couldn’t agree more with President Biden (that) U.S. Steel should remain American owned and American operated,” she said.

“And I will always have the back of America’s steelworkers,” Harris added.

The remarks were greeted by rousing applause from an audience at the headquarters of International Brotherhood of Electrical Workers (IBEW) Local No. 5.

USW – which, like U.S. Steel, is based in Pittsburgh – also praised the news.

“Our union today welcomed Vice President Kamala Harris’ call for U.S. Steel to remain domestically owned and operated,” USW International President Dave McCall said in a statement.

“Harris’ comments … make it clear that she understands the crucial role of the steel industry, not only when it comes to safeguarding our national security, but also to ensuring a brighter future for the workers and communities that depend on good, union jobs,” he added.

President Biden said in March that he was against the deal and has reiterated that stance since. President Donald Trump said in January that he would block the deal. Harris had not previously been explicit in her opposition to the pact.

U.S. Steel reacts

U.S. Steel countered by stressing that an acquisition by Nippon Steel would give it deeper pockets with which to fund its operations, including its facilities in the Pittsburgh area.

“U.S. Steel will be a much stronger company as a result of the transaction with Nippon Steel, and the American steel industry will be more globally competitive,” a company spokesperson said in a statement.

“Nippon Steel has committed to investing nearly $3 billion in our union-represented facilities. These investments would be truly transformative, securing jobs for generations of steelmakers in Western Pennsylvania and represent an influx of capital that U.S. Steel simply would not pursue absent the transaction with Nippon,” the spokesperson added.

Note that some of the bad blood between the USW and U.S. Steel appears to center around the company’s decision to shift $1 billion in planned investments from its Mon Valley Works near Pittsburgh to Big River Steel in Osceola, Ark.

Mon Valley is an integrated, union-represented mill with history dating to the 19th century. Big River is a non-union EAF sheet mill that started up in 2017. U.S. Steel acquired it several years later and has since invested heavily to expand operations there.

SMU Steel Summit

Roughly two-thirds of the hundreds of people who participated in a snap poll at SMU Steel Summit said that they expected the deal to close.

The sale remains subject to government approvals. That includes an antitrust review as well as approval from the powerful Committee on Foreign Investment in the United States (CFIUS).

Several speakers at Steel Summit voiced their support for the deal, including David Sticker.

“Nippon will help US Steel in terms of technology, in terms of quality product, in terms of automotive sales, and most importantly, from my perspective, will absolutely treat their employees fairly, whether they’re union employees or not,” Stickler said in Atlanta during the conference.

Stickler is currently the head of Hybar, which is building a new rebar mill in Osceola. He was also one of the founders of Big River Steel, which is seen as one of the jewels in U.S. Steel’s crown.