Battle for U.S. Steel

[Guest]

I agree with much of what you wrote about Nippon/USS.especially the complex reasons of the decades long shrinking of the US steel ( traditional) industry. I also agree with your opinion of whether the blame or distrust is deserved or not as people and society often want to blame others for their economic downfalls rather than accept their own actions may have contributed to their demise. This could be argued back and forth forever with no consensus or agreement.my family has been an integral part of the steel industry for decades. Me as a career sailor with most of my time delivering to various mills. a brother who was a steel hauler. Two cousins who worked in two separate company mills and even to stretch it to a cousin who was a purchase agent of steel for one of the US auto makers.we have discussed it countless times with all but one understanding the complex equation of what has happened.the lone dissenter only sees it with blinders on, fair or unfair, blaming foreign companies for the collapse of the mega giants of the US steel industry.Thing is,to compare todays market to the 80s is comparing apples to oranges.While some may have trust issues the real big picture is it’s a presidential election year. Both parties are pushing protectionism for votes. Nippon has a solid track record of operating in the USA for 40 yrs with some of their plants USW represented.they grew and created jobs when the big mills were shedding them. Correct me if I’m wrong but the only mill I remember having Japanese involvement at that time was national steel. Maybe Nissin? Nishin? Steel. They poured millions of $ into national, especially the ecorse mill. They didn’t close the mill or cut jobs. Those actions were the result of ,as you put it, complex issues. National would have gone bankrupt back then without Nissins investment. I’m aware that many industries were raided and cut up by some foreign companies in the hostile take over era of the 80s.people and cities suffered. I hope those opposed to nippons ownership can see the only way to save their jobs at USS is to agree to the buy out. USS can not and will not remain afloat much longer as it operates today.i can’t understand the USW position that Cliffs is their salvation and would solidify their jobs and future. Ask the 1500+ ex workers at AK steel ( Dearborn) how it worked for them when cliffs bought the mill and promptly shut down the hot roll line and processing and moved to Middletown.for the US justice dept to sanction cliffs buying USS but block Nippon would violate every anti trust rule and precedent on the books. Why is it ok for American companies and investors to do business in foreign countries, sometimes hurting those countries jobs economies and business but not ok for foreign companies to buy or own American industries? The truth of course is that it’s a global marketplace today and if you don’t change grow and adapt to the times you’ll fall behind and close the doors. USW objection to nippons attempted buy out of USS is to live in the past and try to dominate their contract bargaining position, only to ensure their own demise. I’m not anti union. But the truth is the USA steel industry is alive and well with successful non union plants with happy well paid workers at Steel Dynamics, Nucor, blue scope/north star etc. all of the EAF plants.(mini mills) while what’s left of the traditional mills will continue to decline. Remove the politics, protectionism ,etc and save USS and the remaining jobs with Nippons world experience,customer base and huge amounts of investment capital. You’ll also be saving GL shipping jobs and the thousands countless support jobs that are tied to the remaining big mills.you can remain stubborn and blind to the situation and one day soon see more than zug island sitting cold. Just my two cents worth.

[Guest]

There is a reason why USW and politicians will never support Nippon Steel buying U.S. Steel, and that's principal.

During the steel crisis of the 1980s, where many antiquated mills were closed, steel mill communities were decimated by those closures and the very social fabric and trust was destroyed. One of the biggest importers of steel into the USA, amongst many countries, was Japan.

While the issues are complex, Japan was seen as a "villain" in the steel crisis of the 1980s. Whether that's fair or not, many people even today have a deep mistrust of Japan.

The principal of the matter is that if Japanese steel maker dumping in the 1980s was seen by many as contributing to the steel crisis (perhaps), then for many, why should a Japanese steel company that wants to buy US Steel, be believed and trusted to make a $1 billion dollar investment?

That's what this whole matter of Nippon Steel buying US Steel comes down to - trust.

[Guest]

News today that Nippon Steel is offering $1 billion dollars in up grades to the Mon Valley Works as part of their purchase agreement of US Steel.

Would have to think the USW would view this very positively in light of the questionable future for that mill. Can't see why the Union and the politicians continue to be against this sale esp with this offer.

If approved, should mean continued long haul footer trade for many more years.