U.S. Steel Threatens to Shut Down Several U.S. Plants If Acquisition by Nippon Steel Fails

The American steel manufacturer U.S. Steel threatened on Wednesday to shut down several production sites if its acquisition by its Japanese rival, Nippon Steel, fails—a deal opposed by the government and presidential candidates.

In a statement, U.S. Steel warned that if the Japanese firm does not take control, it would abandon major modernization investments at its Mon Valley Works (Pennsylvania) and Gary Works (Indiana) facilities.

Pennsylvania is one of the key states for the upcoming U.S. presidential election on November 5.

Both Vice President Kamala Harris and former President (2017-2021) and Republican candidate Donald Trump have expressed opposition to the sale during their campaigns.

U.S. Steel has scheduled an event this Wednesday to rally support from its team for the sale to the Japanese giant.

“We want elected officials and other key decision-makers to recognize the benefits of the deal, as well as the inevitable consequences if the agreement fails,” explained the president of the American group, David Burritt.

In December, U.S. Steel reached a $14.9 billion sale agreement with Japan’s Nippon Steel, which in turn promised investments to keep the Pennsylvania plants competitive.

However, the transaction, which has been denounced by the powerful United Steelworkers (USW) union, is facing political hurdles as many Republicans and Democrats oppose it.

On Monday, during a Labor Day event in Pittsburgh, Harris stated that U.S. Steel “must remain in American hands and operated by Americans.”