Over two recent weeks, as the vice chairman of Nippon Steel, I traveled across Western Pennsylvania to engage with the communities, employees, elected officials and business leaders who make up the backbone of this vibrant region. Each of these meetings has reaffirmed that we all share the same goal for the future of U.S. Steel — to protect and grow this iconic American company in a way that allows its employees and communities to thrive alongside one another.
The most common question I received was “How does Nippon Steel plan to make U.S. Steel a more competitive company?” The answer is simple. Nippon Steel is one of the largest and most technologically advanced steelmakers in the world today, supported by a robust balance sheet, a $500 million annual R&D budget, an extensive list of steel-focused patents and best-in-class talent.
The industry leader
Our plan is to put all these resources to work at U.S. Steel so that the company can help meet the demand for high-grade American-made steel products. This means investment across U.S. Steel’s facilities, accompanied with the transfer of Nippon Steel’s cutting-edge technology, will enable the company to produce more advanced and environmentally friendly steel products.
We want U. S. Steel to be the undisputed leader in the American steel industry with expanded capacity and offerings, and we believe Nippon Steel is uniquely positioned to make that happen.
Another question I frequently encountered was “How is this partnership good for workers?” I’m glad I was able to give this answer directly to U.S. Steel employees during recent visits to Mon Valley Works and Gary Works in Indiana. U.S. Steel’s people are without a doubt its most valuable resource, and we have deep respect for them.
Any plan for U.S. Steel’s long-term success must protect existing jobs and create new ones. We have already committed to no job losses, no plant closures and no overseas transfers of jobs or production as a result of this transaction.
Nippon and the unions
In our past discussions with the United Steelworkers Union (USW) leadership, we have committed to at least $1.4 billion in incremental investment at USW-represented facilities through 2026. This is above and beyond the investment that U.S. Steel has committed and undertaken.
A team of Nippon Steel engineers recently visited these facilities to consider how we could further improve them through investment. We have also committed to protecting all jobs and plant operations through the period covered by the union’s existing agreement.
To be clear, we stand by each of these commitments and we plan to make them legally binding. We are always ready to meet with USW leadership at any time to discuss any remaining concerns they may have.
Our ability to work successfully with union labor is already on display not far from Pittsburgh. I had a chance to visit Nippon Steel’s Standard Steel plant in Burnham, as well as Wheeling-Nippon in Follansbee, W.Va. (Wheeling Nippon happens to be a major customer of U. S. Steel’s Mon Valley Works.)
Together, these companies employ approximately 620 USW-represented employees, who are key to the long-term health of the business and enjoy some of the best benefits available to their communities.
And of course, people wanted to know “How will this deal impact the broader Pennsylvania economy?” We are excited not only to be keeping U.S. Steel’s beloved name and brand, but also its Pittsburgh headquarters that is supported by over 1,000 corporate employees. In fact, Nippon Steel will be moving the headquarters of our American business from Houston to Pittsburgh.
Spillover effects
We’re confident that the investments we’ll be making into U.S. Steel and its resulting growth will have important spillover benefits not only for the customers, suppliers and vendors, but for the wider business environment in the areas where U.S. Steel operates.
As part of our community focus, I had the privilege of presenting to civic leaders at a dinner hosted by the Mon Yough Area Chamber of Commerce, where I reiterated Nippon Steel’s desire to protect the steelmaking legacy of the Mon Valley Works as well as our interest in exploring how our emission reduction technology can improve air quality in the region. Through our actions, we want to remain an active and productive member of Pennsylvania’s communities.
You cannot tell the story of U.S. Steel without Pennsylvania playing a leading role, and Nippon Steel will keep it that way.
Takahiro Mori is representative director and vice chairman of Nippon Steel. He has been with the company since 1983.
First Published: June 9, 2024, 9:30 a.m.
