CLEVELAND — U.S. Sen. Sherrod Brown (D-OH) stated his case for President Biden to stop the sale of U.S. Steel to Nippon Steel during a tour of Cleveland-Cliffs Cleveland Works on Wednesday.
"We can't sell out workers and undermine U.S. trade enforcement by allowing the sale of U.S. Steel to Nippon Steel," Brown said during remarks alongside Cleveland-Cliffs CEO Lourenco Goncalves and United Steelworkers (USW) District 1 Director Donnie Blatt.
U.S. Steel, the Pittsburgh steel producer that played a key role in the nation's industrialization, was acquired by Nippon Steel in December in an all-cash deal valued at approximately $14.1 billion. The transaction is worth about $14.9 billion when including the assumption of debt. The combined company is projected to be among the top three steel-producing companies in the world, according to 2022 figures from the World Steel Association.
The price tag for U.S. Steel turned out to be nearly double what was offered four months earlier by rival Cleveland-Cliffs.
Specifically, Brown believes the sale "will make it much more difficult for the U.S. to bring trade cases in support of U.S. steelworkers and take action against bad actors." He has also warned that "Nippon has not given workers a seat at the table – a seat that the United Steelworkers’ collective bargaining agreement with U.S. Steel guarantees for its workers."
“Ever since this deal was announced, Nippon Steel has made it clear they don’t value workers or see them as a partner," Brown added. "We need to keep American steel production in the hands of companies that value their greatest asset: American workers.”
“Senator Brown understands that in order for the U.S. economy to be the best in the world, we have to have a vibrant domestic steel industry here in the United States, with a good domestic supply chain,” added Blatt.
Brown and Blatt raised concerns Wednesday about workers having a voice, national security, and U.S. trade enforcement. Blatt also voiced concerns over how the sale would impact the USW and their current agreements.
Earlier this month, Biden came out in opposition to the sale, saying that the U.S. needs to “maintain strong American steel companies powered by American steel workers.”
In a statement, Biden added: “U.S. Steel has been an iconic American steel company for more than a century, and it is vital for it to remain an American steel company that is domestically owned and operated.”
The Associated Press contributed to this report