U.S. President Donald Trump announced on Friday that United States Steel Corp. will keep its headquarters in Pittsburgh as part of a planned partnership with Japan-based Nippon Steel.
“This will be a planned partnership between United States Steel and Nippon Steel, which will create at least 70,000 jobs, and add $14 Billion Dollars to the U.S. Economy,” Trump wrote in a post on Truth Social. “The bulk of that Investment will occur in the next 14 months.”
Before he left office President Joe Biden quashed Nippon Steel’s proposed $14.9 billion bid to buy U.S. Steel on national security concerns, but Trump in April directed a U.S. national security panel to take another look at the proposed merger. That national security panel submitted its recommendation to the president on Wednesday, although it was not made public.
Trump had suggested in February that Nippon would be looking to invest in U.S. Steel rather than purchase the iconic American company, but analysts took the president’s statement on Friday to suggest the merger would now move forward. U.S. Steel stock jumped on the news.
U.S. Steel issued a statement after the president’s announcement: “U.S. Steel will remain American, and we will grow bigger and stronger through a partnership with Nippon Steel that brings massive investment, new technologies and thousands of jobs over the next four years.”
U.S. Sen. Dave McCormick (R-PA) said the partnership is great for the economy, for national security, and for the hardworking people of Pennsylvania.
“My priorities are preserving and expanding jobs and investment in the Mon Valley. This partnership gets it done. This $14 billion investment by Nippon Steel ensures this storied American company remains under US leadership, dramatically enhances US domestic steel production capacity, protects more than 11,000 Pennsylvania jobs, and supports the creation of at least 14,000 more,” McCormick said.
David N. Taylor, President & CEO of the Pennsylvania Manufacturers’ Association, said the new partnership means that “Pennsylvania will be producing steel for generations to come with new and better facilities and world-class production methods and technologies.”
“President Trump cares about the lives and jobs of working people in America, which is why he is a champion for domestic manufacturing and ‘Made in the USA.’ Trump did not forsake the steelworkers of the Mon Valley or the communities where they work, which would have been devastated if the deal had failed. This is a great day for Pittsburgh, which will remain the proud home of one of America’s most famous employers,” Taylor said.
Nippon Steel had previously pledged that its investments would include at least $1 billion for upgrading the existing hot strip mill and other facilities in Pennsylvania’s Mon Valley Works.
Pennsylvania Gov. Josh Shapiro released a statement that said, in part, now that Trump has expressed support for the deal, “we have the opportunity to deliver historic investments, ensure the future of American steelmaking continues to run through the Mon Valley while the headquarters of U.S. Steel remains in Pittsburgh and have our workers, right here in Pennsylvania, continue leading the world with their skill and innovation.”
Senate President Pro Tempore Kim Ward (R-39) also lauded the president’s support of Nippon’s investment in U.S. Steel. “President Trump’s engagement in the Nippon/U.S. Steel acquisition has not only made this the largest steel merger in recent history, but will position the American steel industry to dominate the global marketplace through innovation. This $28 billion deal will sustain and create a combined total of 25,500 jobs and keep U.S. Steel where it belongs — in western Pennsylvania.”
Another advocate of the merger, the Allegheny Conference on Community Development, thanked the president for his decision that recognizes the opportunity that Nippon’s investment means to American manufacturing and steelmaking.
“This is a historic moment to celebrate — both for what the deal means and what it says about our region — that our energy assets, skilled workforce, higher education, and strategic location to markets are a tremendous value proposition for investment from companies like Nippon,” said Allegheny Conference CEO Stefani Pashman.
The president said he will attend a big rally in Pittsburgh on May 30.