Shapiro calls on US Steel to protect Pa. workers after Biden blocks merger with Nippon Steel

President Joe Biden blocked the merger between US Steel and Nippon Steel, citing national security concerns. Gov. Josh Shapiro is calling on US Steel to protect Pennsylvania workers following Biden’s announcement.

Gov. Josh Shapiro is calling on U.S. Steel leadership and potential buyers to uphold their commitments to Western Pennsylvania families after President Joe Biden announced on Friday that he blocked the sale of US Steel to Nippon Steel, a Japanese-based steel manufacturer. 

US Steel and Nippon Steel have been negotiating a potential sale worth close to $15 billion for the past year, but it was met with bipartisan opposition even though Nippon promised to invest at least $2.7 billion in the Pittsburgh-based company and their steel manufacturing plants. 

“I expect US Steel to uphold their commitments to Western Pennsylvania, refrain from threatening the jobs and livelihoods of the Pennsylvanians who work at the Mon Valley Works and at US Steel HQ and their families, and work collaboratively to ensure the future of American steelmaking takes place right here in our Commonwealth,” Shapiro said in a statement. 

“I also expect any other potential buyers to demonstrate the strong commitments to capital investment and protecting and growing Pennsylvania jobs that Nippon Steel placed on the table during my continued dialogue with their leadership.”

Shapiro did not publicly express support or opposition for the merger over the past year, citing that this was a federal issue. 

Both Biden and incoming President Donald Trump opposed Nippon’s acquisition of US Steel due to national security concerns. The proposed sale was also opposed by US Sens. Bob Casey (D-Penn.) and John Fetterman (D-Penn.).

“A strong domestically owned and operated steel industry represents an essential national security priority and is critical for resilient supply chains,” Biden said in a statement. “That is because steel powers our country: our infrastructure, our auto industry, and our defense industrial base. Without domestic steel production and domestic steel workers, our nation is less strong and less secure.”

Hundreds of US Steel employees from the Clairton Coke Works plant in Western Pennsylvania rallied last month in support of the merger between the companies. 

According to WESA, Nippon promised upgrades and billions in investments at the US Steel facilities in the Mon Valley, a $5,000 bonus for all employees and a promise to keep US Steel’s headquarters in Pittsburgh. 

Lt. Gov. Austin Davis, a Mon Valley native, expressed concerns that leaders nationally are once again turning their backs on Western Pennsylvania’s steel industry. 

“This issue is personal for me. I grew up and still live in the shadow of U.S. Steel plants. I went to high school with people who work at the Mon Valley Works. I know the pain and frustration of my neighbors who watched as the steel industry collapsed, laying off thousands of workers and shuttering factories, while leaders in Washington did nothing,” Davis said in a statement. “I’m deeply concerned this is happening again – and that is unacceptable.”