Latest news with #JasonZugai
Yahoo
23-04-2025
- Business
- Yahoo
Opinion - To restore manufacturing in America, Trump should approve the Nippon Steel deal
Amid economic turbulence rivaling the 2008 financial crisis and the COVID-19 pandemic, American industry is searching for renewal. One rare and promising opportunity lies in Nippon Steel's $14.9 billion bid to acquire U.S. Steel. More than a merger, this is a lifeline for a historic American company — and a strategic bet on the future of domestic manufacturing. If approved, it would turbocharge U.S. Steel's global competitiveness, secure thousands of high-paying union jobs, and reinforce America's industrial backbone. Yet political resistance has been threatening this transformative partnership. Since December 2023, Nippon Steel has presented a bold vision: to modernize U.S. Steel through a $7 billion investment — up from an initial $2.7 billion — including $1 billion for Pennsylvania's aging Mon Valley facilities. The investment would bring advanced technologies, improved efficiency, and the scale necessary to compete with international powerhouses like China's Baowu Steel. In a show of goodwill, Nippon has pledged to preserve U.S. Steel's Pittsburgh headquarters, honor union contracts, retain all workers, and pay $5,000 bonuses to employees upon deal completion. These are not just numbers; they represent urgent reinvestment in American infrastructure and workers at a moment when many industrial facilities risk obsolescence. As U.S. Steel CEO David Burritt has warned, without these upgrades, key plants may close and headquarters could relocate. Union workers like Jason Zugai, a trainer at U.S. Steel's Mon Valley plant, have been blunt about the stakes: 'Without these investments from Nippon, our facility won't last.' Despite this, the Biden administration blocked the deal in January 2025, citing national security concerns. Yet these concerns were unfounded. Japan is one of America's closest allies. Nippon Steel's vice chairman, Takahiro Mori, aptly noted the rejection was politically motivated, favoring a domestic bidder, Cleveland-Cliffs. CEO Lourenco Goncalves openly boasted about using 'magic' to sabotage the deal for his own gain. If successful, Cleveland-Cliffs would monopolize U.S. blast furnace steelmaking, electrical steel production and iron ore reserves, and command two-thirds of automotive steel output. That's not protectionism — it's consolidation at consumers' and workers' expense. History supports this fear: Cliffs closed plants, including one in West Virginia, and slashed jobs in Michigan and Minnesota just this year. Its record stands in stark contrast to Nippon's investment-driven strategy. Fortunately, President Trump revived the deal's prospects on April 7 by ordering a new review by the Committee on Foreign Investment in the U.S., set to conclude by June 5. A fair, fact-based review should confirm what market analysts already know: the deal poses no national security threat. On the contrary, it strengthens the U.S. By bringing advanced steelmaking technology to American shores, the deal ensures a resilient domestic supply chain vital to defense, infrastructure and energy independence. Trump himself acknowledged Nippon Steel's strength on April 10, calling it a 'big, powerful company' likely to 'do a good job.' Yet he also insisted U.S. Steel must remain 'American' — suggesting Nippon should simply build a new plant. For the sake of the domestic steel industry, the president should instead allow Nippon's full ownership. Constructing a greenfield facility would take years, cost billions more, and sidestep the very infrastructure and skilled labor force that make this deal viable. Crucially, Nippon's proprietary technology — the heart of its value proposition — is unlikely to be transferred in a minority stake or passive partnership. Full ownership is what unlocks transformation. Critics, including the United Steelworkers and allies of Cleveland-Cliffs, frame the deal as 'foreign ownership.' But this is a mischaracterization. Nippon's plan retains U.S. Steel's operational independence, American branding and workforce. It brings the best of both worlds: American roots with Japanese investment and innovation. The alternative — a weakened, underfunded U.S. Steel or a Cliffs monopoly — undermines both worker livelihoods and national interests. Investors understand what's at stake — U.S. Steel shares jumped 16.2 percent after Trump's review order; Nippon's stock climbed nearly 10 percent. But in the broader context of the U.S.-China rivalry, this deal is more than economic — it's geopolitical. Japan and the U.S. share a commitment to countering China's steel overproduction and global dumping practices. A strengthened U.S.-Japan steel alliance would fortify supply chains, reduce dependence on adversarial sources, and ensure American capacity to meet strategic needs. Trump has built his platform on reviving American manufacturing. Here is a rare chance to deliver — not with rhetoric or tariffs alone, but with capital, technology and jobs. Tariffs may offer temporary protection, but direct investments can modernize mills or invent next-generation alloys much quicker. Nippon is ready to provide it. As the review continues, the White House must resist political pressure and focus on facts. Approving this acquisition would be a legacy-defining decision: revitalizing an iconic American brand, securing thousands of union jobs, and cementing a global leadership role for U.S. Steel. Delaying or rejecting the deal would hand the advantage to foreign competitors, particularly China, and perpetuate industrial stagnation. Daniel Bob worked on U.S. foreign and economic policy toward the Indo-Pacific in senior positions in the U.S. Senate Foreign Relations and Finance Committees and the House Foreign Affairs Committee. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
The Hill
23-04-2025
- Business
- The Hill
To restore manufacturing in America, Trump should approve the Nippon Steel deal
Amid economic turbulence rivaling the 2008 financial crisis and the COVID-19 pandemic, American industry is searching for renewal. One rare and promising opportunity lies in Nippon Steel's $14.9 billion bid to acquire U.S. Steel. More than a merger, this is a lifeline for a historic American company — and a strategic bet on the future of domestic manufacturing. If approved, it would turbocharge U.S. Steel's global competitiveness, secure thousands of high-paying union jobs, and reinforce America's industrial backbone. Yet political resistance has been threatening this transformative partnership. Since December 2023, Nippon Steel has presented a bold vision: to modernize U.S. Steel through a $7 billion investment — up from an initial $2.7 billion — including $1 billion for Pennsylvania's aging Mon Valley facilities. The investment would bring advanced technologies, improved efficiency, and the scale necessary to compete with international powerhouses like China's Baowu Steel. In a show of goodwill, Nippon has pledged to preserve U.S. Steel's Pittsburgh headquarters, honor union contracts, retain all workers, and pay $5,000 bonuses to employees upon deal completion. These are not just numbers; they represent urgent reinvestment in American infrastructure and workers at a moment when many industrial facilities risk obsolescence. As U.S. Steel CEO David Burritt has warned, without these upgrades, key plants may close and headquarters could relocate. Union workers like Jason Zugai, a trainer at U.S. Steel's Mon Valley plant, have been blunt about the stakes: 'Without these investments from Nippon, our facility won't last.' Despite this, the Biden administration blocked the deal in January 2025, citing national security concerns. Yet these concerns were unfounded. Japan is one of America's closest allies. Nippon Steel's vice chairman, Takahiro Mori, aptly noted the rejection was politically motivated, favoring a domestic bidder, Cleveland-Cliffs. CEO Lourenco Goncalves openly boasted about using 'magic' to sabotage the deal for his own gain. If successful, Cleveland-Cliffs would monopolize U.S. blast furnace steelmaking, electrical steel production and iron ore reserves, and command two-thirds of automotive steel output. That's not protectionism — it's consolidation at consumers' and workers' expense. History supports this fear: Cliffs closed plants, including one in West Virginia, and slashed jobs in Michigan and Minnesota just this year. Its record stands in stark contrast to Nippon's investment-driven strategy. Fortunately, President Trump revived the deal's prospects on April 7 by ordering a new review by the Committee on Foreign Investment in the U.S., set to conclude by June 5. A fair, fact-based review should confirm what market analysts already know: the deal poses no national security threat. On the contrary, it strengthens the U.S. By bringing advanced steelmaking technology to American shores, the deal ensures a resilient domestic supply chain vital to defense, infrastructure and energy independence. Trump himself acknowledged Nippon Steel's strength on April 10, calling it a 'big, powerful company' likely to 'do a good job.' Yet he also insisted U.S. Steel must remain 'American' — suggesting Nippon should simply build a new plant. For the sake of the domestic steel industry, the president should instead allow Nippon's full ownership. Constructing a greenfield facility would take years, cost billions more, and sidestep the very infrastructure and skilled labor force that make this deal viable. Crucially, Nippon's proprietary technology — the heart of its value proposition — is unlikely to be transferred in a minority stake or passive partnership. Full ownership is what unlocks transformation. Critics, including the United Steelworkers and allies of Cleveland-Cliffs, frame the deal as 'foreign ownership.' But this is a mischaracterization. Nippon's plan retains U.S. Steel's operational independence, American branding and workforce. It brings the best of both worlds: American roots with Japanese investment and innovation. The alternative — a weakened, underfunded U.S. Steel or a Cliffs monopoly — undermines both worker livelihoods and national interests. Investors understand what's at stake — U.S. Steel shares jumped 16.2 percent after Trump's review order; Nippon's stock climbed nearly 10 percent. But in the broader context of the U.S.-China rivalry, this deal is more than economic — it's geopolitical. Japan and the U.S. share a commitment to countering China's steel overproduction and global dumping practices. A strengthened U.S.-Japan steel alliance would fortify supply chains, reduce dependence on adversarial sources, and ensure American capacity to meet strategic needs. Trump has built his platform on reviving American manufacturing. Here is a rare chance to deliver — not with rhetoric or tariffs alone, but with capital, technology and jobs. Tariffs may offer temporary protection, but direct investments can modernize mills or invent next-generation alloys much quicker. Nippon is ready to provide it. As the review continues, the White House must resist political pressure and focus on facts. Approving this acquisition would be a legacy-defining decision: revitalizing an iconic American brand, securing thousands of union jobs, and cementing a global leadership role for U.S. Steel. Delaying or rejecting the deal would hand the advantage to foreign competitors, particularly China, and perpetuate industrial stagnation.
