U.S. Steel warned Wednesday that it may cut staff and move its headquarters from Pittsburgh if the company’s planned sale to Japanese steelmaker Nippon Steel falls apart.
Nippon Steel announced it would acquire U.S. Steel in December, prompting outcry from lawmakers across the political spectrum who argued the deal could undermine national security and industrial capacity.
President Biden, Vice President Harris and former President Trump have all voiced opposition to the deal.
“U.S. Steel should remain American-owned and American-operated, and I will always have the backs of America’s steelworkers,” Harris said during a Monday rally in Pittsburgh
The steelmaker said its employees would rally Wednesday at the U.S. Steel Tower in Pittsburgh in support of the deal, including calls to elected officials.
“We want elected leaders and other key decision makers to recognize the benefits of the deal as well as the unavoidable consequences if the deal fails,” said U.S. Steel President and CEO David Burritt in a press release.
Nippon Steel announced plans last week to invest more than $2.7 billion to replace and upgrade facilities to increase their competitiveness and maintain jobs. If the deal collapses, U.S. Steel said in a press release that it “would not make the same financial commitments.”
“We wouldn’t do that if the deal falls through,” Burritt said in an interview with the Wall Street Journal. “I don’t have the money.”
U.S. Steel said it would “largely pivot away” from blast furnace facilities that would receive Nippon steel investment, which could put “thousands of good-paying union jobs at risk.”
The company also warned that if the deal fell through, it “raises serious questions” about keeping its longtime headquarters in Pittsburgh.
U.S. Steel did not respond to questions from The Hill about how many jobs would be at risk and where else the company might move its headquarters.
