Published: September 5, 2024 |

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U.S. Steel warned Wednesday that it may cut staff and move its headquarters from Pittsburgh if the company’s planned sale to Japanese steelmaker Nippon Steel falls apart.

Nippon Steel announced it would acquire U.S. Steel in December, prompting outcry from lawmakers across the political spectrum who argued the deal could undermine national security and industrial capacity.

President Biden, Vice President Harris, and former President Trump have all voiced opposition to the deal.

The steelmaker said its employees would rally Wednesday at the U.S. Steel Tower in Pittsburgh in support of the deal, including calls to elected officials.

“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 President and CEO David Burritt in a press release.

Nippon Steel announced plans last week to invest more than $2.7 billion to replace and upgrade facilities to increase their competitiveness and maintain jobs. If the deal collapses, U.S. Steel said in a press release that it “would not make the same financial commitments.”

“We wouldn’t do that if the deal falls through. I don’t have the money,” Burritt said in an interview with The Wall Street Journal.

U.S. Steel said it would “largely pivot away” from blast furnace facilities that would receive Nippon steel investment, which could put “thousands of good-paying union jobs at risk.”

The company also warned that if the deal fell through, it “raises serious questions” about keeping its longtime headquarters in Pittsburgh.

In response to The Hill’s question about how many jobs would be at risk, a U.S. Steel spokesperson said there were currently around 3,800 employees in Pennsylvania and 4,300 employees at the Gary Works, Ind., facility set to receive the Nippon Steel investment.

The spokesperson did not respond to The Hill’s question about where the company might move its headquarters.

Source: The Hill

Founded in 1901, U.S. Steel is a leading steel manufacturer. With an unwavering focus on safety, the company’s customer-centric Best for All® strategy is advancing a more secure, sustainable future for U.S. Steel and its stakeholders. With a renewed emphasis on innovation, U.S. Steel serves the automotive, construction, appliance, energy, containers, and packaging industries with high value-added steel products. The company also maintains advanced iron ore production and has an annual raw steelmaking capability of 22.4 million net tons. U.S. Steel is headquartered in Pittsburgh, Pennsylvania, with world-class operations across the United States and in Central Europe.

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