Deal complete: U.S. Steel, Nippon Steel finalize ‘partnership’

The U.S. Steel Corp. and the Japanese steelmaker Nippon Steel Corp. announced that they have finalized what they are calling a “historic partnership.”

The companies made the announcement in a press release on Wednesday, saying moving forward they will be “a world-leading steelmaker, with best-in-class technologies and manufacturing capabilities.”

“This is a momentous day for our country, our communities, and the American steel industry. Thanks to President Trump’s bold leadership, American workers secured the best possible deal. U. S. Steel will remain rooted in the United States and continue to call Pittsburgh home. Through our partnership with Nippon Steel, we are poised to grow better and bigger, with transformative investment, cutting-edge technology, and the creation of good-paying jobs across the United States,”said U. S. Steel’s CEO Dave Burritt.

The deal comes after the companies signed a national security agreement, which included giving the U.S. government a “golden share.” We are now learning more details on what this means for the future of the companies and Pittsburgh.

The conditions of the security agreement include:

$11 billion in new investments in U. S. Steel by 2028, which includes an initial investment in a greenfield project that will be completed after 2028;
Keeping U.S. Steel in the United States and its headquarters in Pittsburgh;
A majority of the members of U. S. Steel’s board of directors and key management personnel, including its CEO, will be U.S. citizens
Nippon Steel will not “prevent, prohibit, or otherwise interfere with U. S. Steel’s ability to pursue trade action under U.S. law”

The “golden share” will give the U.S. government certain rights. The release stated that the government will have the right to appoint one independent director and consent rights of the President of the United States, or his designee, on specific matters, including:

Reductions in the committed capital investments under the NSA;
Changing U. S. Steel’s name and headquarters;
Redomiciling U. S. Steel outside of the United States;
Transfer of production or jobs outside of the United States;
Material acquisitions of competing businesses in the United States; and
Certain decisions on closure or idling of U. S. Steel’s existing U.S. manufacturing facilities, trade, labor, and sourcing outside of the United States.

In addition, the release said the partnership will protect and create more than 100,000 jobs.

“We share President Trump’s commitment to protect the future of the American steel industry, American workers, and American national security, and we look forward to building a stronger and brighter future for U. S. Steel,” Takahiro Mori, Nippon Steel’s Representative Director and Vice Chairman, and who will serve as Chairman of the Board of U. S. Steel said.

United Steelworkers (USW) International President David McCall issued a statement Wednesday saying that its union workers will hold Nippon to its commitments. It’s been an 18-month process where local lawmakers played a huge role. The full statement reads:

“Management at U.S. Steel and Nippon have since December 2023 aggressively promoted their deal, pouring vast amounts of resources into downplaying concerns regarding both the long-term future of USW members’ jobs and our national security while ensuring their sale remained in the public view. It finally found acceptance by President Donald Trump, who now, through his ‘golden share’ has assumed a startling degree of personal power over a corporation. As the sale concludes, it seems likely that attention will dissipate. U.S. Steel’s PR machine will power down, and the majority of elected officials will turn their attention elsewhere. However, our union will remain. We will continue watching, holding Nippon to its commitments. And we will use the most powerful tool workers have against global corporations: collective bargaining. Our current agreement expires in September 2026, and rest assured, if our job security, pensions, retiree health care or other hard-earned benefits are threatened, we are ready to respond with the full strength and solidarity of our membership.”

Mayor Kelly is elated about the partnership.

“Steel working has been embedded in this valley for well over a hundred years and this is an opportunity for a new generation of steel workers - life-sustaining jobs,” he said. “It’s the largest investment in Pennsylvania’s history - let that sink in.”

The deal includes several safeguards.

“To ensure that it wouldn’t be arbitrarily shut down or their jobs would be lost, that there would be future generations of steelworkers in western Pennsylvania,” William Chou said.

Chou works for the Hudson Institute, a non-partisan foreign policy company that’s been following the deal since it started in December of 2023. He explained to Channel 11 some of the commitments U.S. Steel and Nippon agreed on, like the golden share.

“The golden share as part of the national security agreement that U.S. Steel and Nippon Steel signed with the U.S. government essentially ensures that U.S. Steel remains U.S. Steel. It’s not going to change its name it’s not going to move. It will have an American citizen majority board.”

Chou says the commitments highlight Nippon wanting to concentrate on developing its own American-based businesses. Mayor Kelly says he experienced this firsthand when company executives sat down with local stakeholders.

“They’re just wonderful people,” Kelly said. “The officials have all been here in the garage and I think they love the atmosphere of a working man’s garage.”

Allegheny County Executive Sara Innamorato says she, too, has had open communication with Nippon and looks forward to working with them and the unions that represent their workers.

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