UNDATED — As the announcement of the sale of U.S. Steel to Nippon Steel of Japan fills headlines across the country, how might the sale impact U.S. Steel operations on the Mesabi Iron Range in Minnesota?
U.S. Steel owns holdings in three mining operations on the Iron Range and employs almost 2,500 workers. Aaron Brown writes in the Minnesota Reformer that throughout the Iron Range’s mining history, decisions made in the interest of stockholders are not new in this industry.
"... no company was more responsible for the development of the Iron Range than U.S. Steel. But that was not the company board’s primary concern. They have stockholders to worry about ..." he wrote in a Dec. 18 article.
Last weekend, U.S. Steel accepted a $14.9 billion offer by Nippon, one of the largest steelmakers in the world. Nippon outbid Cleveland-Cliffs and others by more than $10 a share, doubling Cliff’s earlier offer.
Federal lawmakers across the aisles are decrying the merger, saying it stands to impact American workers in the Rust Belt and beyond, also noting the implications the sale could have on national security.
The acquisition of @U_S_Steel by a foreign company is wrong for workers and wrong for Pennsylvania. I’m gonna do everything I can to block it. pic.twitter.com/9EqohwRhRJ
— Senator John Fetterman (@SenFettermanPA) December 18, 2023
“To say we’re disappointed in the announced deal between U.S. Steel and Nippon is an understatement, as it demonstrates the same greedy, shortsighted attitude that has guided U.S. Steel for far too long,” said the United Steelworkers of America in a statement, who favored a Cleveland-Cliffs merger.
A press release from U.S. Steel states Nippon plans to honor all contracts with collective bargaining units. Nippon President Eiji Hashimoto says U.S. Steel will retain its name and headquarters in Pittsburgh, and that the company remains committed to its 2050 carbon neutrality goals.