Several Pennsylvania state Republican representatives introduced a resolution in the General Assembly Oct. 9 urging President Joe Biden to approve the sale of U.S. Steel Corp. to Nippon Steel Corp. to help ensure the well-being and welfare of the residents in the commonwealth.
State Reps. Robert Mercuri (R-Allegheny), Kerry Benninghoff (R-Centre County, Mifflin County), Marla Brown (R-Lawrence County), Kate Klunk (R-York County), Charity Grimm Krupa (R-Fayette County), Natalie Mihalek (R-Allegheny County, Washington County), and Michael Stender (R-Northumberland County, Montour County) introduced House Resolution No. 562.
The resolution contains information on the economic benefits of U.S. Steel’s presence in the commonwealth, as well as information about the strong alliance that the United States has with Japan, where Nippon Steel is headquartered, according to an Oct. 3 memorandum posted by Mercuri, the lead sponsor of the resolution.
“The president has the authority to approve or deny the sale of U.S. Steel,” Mercuri’s memo states. “I ask you to join me in cosponsoring this resolution to send a clear and strong message to President Biden: U.S. Steel is good for Pennsylvania, and this deal is good for Pennsylvania.”
According to the text of the resolution, U.S. Steel conducted an economic impact study in 2023 to analyze its effect in fiscal year 2022 on Pennsylvania, which the company has called home for more than 120 years and where it has seven locations throughout the state.
The study stated that U.S. Steel generated $3.6 billion in total economic impact; supported and sustained more than 11,000 jobs; generated more than $138 million in state and local tax revenue; and contributed more than $3.4 million to the local community through volunteerism; and collaborated with more than 700 Pennsylvania-based suppliers, creating a ripple effect of economic impact throughout the commonwealth.
Nippon Steel announced Dec. 18, 2023 that it was acquiring U.S. Steel and “was quick to highlight its track record of safety in the workplace and working collaboratively with unions in announcing the deal,” according to the text of the resolution.
The resolution goes on to state that Nippon Steel also has pledged that all of U.S. Steel’s commitments with its employees, including all collective bargaining agreements in place with its unions, will be honored.
Mercuri also pointed out in his memorandum that Nippon Steel has repeatedly pledged its commitment that U.S. Steel will retain its name, brand, and headquarters in Pittsburgh under the deal, as well as a financial pledge of more than $2.7 billion in U.S. Steel’s facilities.
For its part, U.S. Steel has publicly stated that without the Nippon Steel transaction, it will largely pivot away from its blast furnace facilities, putting thousands of good-paying union jobs at risk, negatively impacting numerous communities across the locations where its facilities exist, and depriving the American steel industry of an opportunity to better compete on the global stage, as stated in the resolution.
“The lack of a deal with Nippon Steel [also] raises serious questions about U.S. Steel remaining headquartered in Pittsburgh,” the resolution says.
The lawmakers also say in the resolution that it’s in the best interest of the residents of Pennsylvania that the General Assembly support all business decisions that provide for family-sustaining employment and a positive economic impact in Pennsylvania, including the proposed deal between Nippon Steel and U.S. Steel, and therefore urge Biden to approve the sale.
Copies of the resolution are being transmitted to the president, as well as PA’s congressional delegation, according to Mercuri.
State Senate President Pro Tempore Kim Ward (R) is also supportive of the deal.