US Steel's strategic importance growing: Nippon Steel CEO
TOKYO (Kyodo) -- Nippon Steel Corp. CEO Eiji Hashimoto said Thursday that United States Steel Corp. is of growing strategic importance as higher U.S. tariffs on steel products introduced by President Donald Trump are likely to remain in place.
At a news conference in Tokyo, Hashimoto said while his company's acquisition of U.S. Steel should help the world's largest economy, trade levies will not revive its manufacturing sector.
"I believe President Trump came to the conclusion that it is necessary to utilize our power to revive the U.S. steel industry," Hashimoto said, adding the Japanese steelmaker aims to bolster its U.S. unit's overseas operations as well.
Nippon Steel, the world's fourth-largest steelmaker by volume, said Wednesday it had finalized a $14.1 billion deal to make U.S. Steel a wholly owned subsidiary.
The deal came after Trump reversed his initial opposition to the acquisition plan, which was announced in December 2023 but blocked by his predecessor, Joe Biden, citing national security concerns.
Nippon Steel has concluded a National Security Agreement with the U.S. government, pledging to invest around $11 billion by 2028 in the iconic but struggling company and keep its headquarters in Pittsburgh.
During the news conference, Hashimoto shrugged off the possibility that the security pact will hamper its U.S. business.
U.S. Steel will also issue a golden share to the U.S. government that grants veto power over key management decisions.
Based on the security agreement and the share, the U.S. president or a designated official will have the right to approve certain management decisions, including the closure or idling of U.S. Steel's existing manufacturing facilities in the country.
Hashimoto also defended the $11 billion investment, much higher than Nippon Steel initially planned, saying it will be needed to improve U.S. Steel's corporate value.
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