How would Nippon Steel’s plan affect Granite City steelworkers and residents?
The leader of the Granite City steelworkers union was “disappointed” Monday to hear that U.S. Steel could be taken over by Nippon Steel of Japan for $14.9 billion instead of another American company, but he also had a glimmer of optimism.
“I’m disappointed that it isn’t one of the other steel companies that we were pushing for,” said Dan Simmons, president of United Steelworkers Local 1899, which represents employees at U.S. Steel’s plant in Granite City.
Simmons said other possible companies, which included Cleveland-Cliffs Inc. of Cleveland, Ohio, have had positive relationships with union workers.
However, Simmons said Nippon had a good relationship with the former National Steel Corp. in the United States over two decades ago so he hopes this could be replicated with the U.S. Steel plants.
Simmons said in a news conference at the union hall that he hasn’t heard any details yet from Nippon for the firm’s plans for the Granite City plant, and he looks forward to hearing the company’s plans.
The proposed sale between U.S. Steel and Nippon is not expected to close until the second or third quarter of 2024, according to a U.S. Steel statement.
Simmons said he is concerned that U.S. Steel officials would still be running the company in the United States for Nippon and that U.S. Steel officials have idled the blast furnace in Granite City. He believes the blast furnace should be restarted because the price of steel is doing well.
“We make grades of steel that nobody else in this country can make,” Simmons said. “U.S. Steel didn’t take advantage of that.”
He said U.S. Steel has a “narrow vision” for the products that could be produced in Granite City if the blast furnace is operating.
Granite City mayor reacts to sale plan
Granite City Mayor Mike Parkinson said it’s early in the process of the proposed sale, and he doesn’t know what Nippon plans for Granite City.
“Clearly we’re hopeful they will fire this thing back up and start producing steel as we always have,” Parkinson said.
He was referring to the blast furnace that was idled by U.S. Steel. Granite City Works has continued to perform finishing operations for U.S. Steel.
Parkinson said “the fear” is that Nippon would let U.S. Steel officials continue the current decision to keep the Granite City blast furnace idle.
The mayor also raised concerns about whether Nippon would honor the union agreements made between the steelworkers and U.S. Steel.
“Clearly there’s some issues of national interest here that I think the government really needs to take a close look at as well to make sure that this is in the best interests of the United States.”
Parkinson’s comments about national security were similar to remarks by David McCall, international president of the United Steelworkers union.
McCall urged “government regulators to carefully scrutinize this acquisition and determine if the proposed transaction serves the national security interests of the United States and benefits workers.”
Parkinson said that if there is a new owner at the Granite City plant, he will “hold them accountable for cleaning anything they idle and shut down.”
“Anything that’s idled here, I will expect it to be cleaned up and returned to brownfields. I’m not going to allow this city to become a Rust Belt like we’ve seen in other plant shutdowns throughout the Pittsburgh region and other areas of the United States.”
