President Donald Trump announced an agreement between U.S. Steel and Nippon Steel on Friday.
“I am proud to announce that, after much consideration and negotiation, U.S. Steel will REMAIN in America and keep its headquarters in the great city of Pittsburgh,” the President wrote on his social media platform, Truth Social. “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.”
The $14 billion figure refers to pledged investments by Nippon, including $4 billion for a new electric arc furnace mini mill at an unannounced location and $2.4 billion for facilities in Pennsylvania. At least $1 billion is earmarked to replace or improve a hot strip mill at the Mon Valley Works.
Trump said in his post the bulk of the investment will happen in the next 14 months.
Nippon initially promised only $1.4 billion for facility upgrades.
Trump’s decision essentially overrules former President Joe Biden, who blocked a takeover of U.S. Steel by Nippon in January on national security grounds. It’s not immediately clear what will become of the outright sale offer.
The move comes two days after the Committee on Foreign Investment in the United States filed a report on the possible national security risks, at Trump’s request. The secretive panel reportedly failed to reach a consensus, much the same outcome as its prior review under Biden.
Thank you messages to President Trump poured in from Republican lawmakers after the news broke.
“This partnership is great for the economy, great for national security and great for the hardworking people of Pennsylvania,” said Sen. Dave McCormick. “I am proud to stand by President Trump as he lives up to our shared promise to rebuild U.S. manufacturing and deliver for American workers.”
Rep. Dan Meuser, R-Pottsville, said the decision was proof “it was more of a threat if we don’t build steel in America.”
And state Sen. Kim Ward, R-Hempfield, praised the decision as marking “a great day for Western Pennsylvania.” Trump’s engagement on the issue, she said, made the deal the largest steel merger in recent history.
The transaction also had the support of many business and industry groups.
Allegheny Conference CEO Stefani Pashman said she was eager to work with Nippon toward regional economic growth, and celebrated the company’s arrival as a testament to the area’s energy assets, skilled workforce and strategic location.
“We can now unify around the company’s bright future, benefiting from the expertise, innovation and investment Nippon will bring our region,” Pashman added.
For the United Steelworkers union, which represents more than 3,000 workers at the Mon Valley Works, the approval comes as a bitter defeat. Union leadership opposed the deal from the onset in December 2023, though a large portion of rank-and-file members defected over time.
David McCall slammed Nippon on Thursday as “serial trade cheater,” referring to accusations of illegally dumping cheap steel in foreign markets, and untrustworthy steward of the iconic American company.
The United Steelworkers, U.S. Steel and Nippon did not immediately return requests for comment.
The President said he will hold a rally in Pittsburgh on May 30, but did not offer an exact location.