Nippon Steel talks future of Mon Valley and union jobs if it acquires U.S. Steel

PITTSBURGH (KDKA) — The acquisition of U.S. Steel by Japan’s largest steelmaker has raised questions about the future of the Mon Valley and local steelworkers.

The acquisition of a legacy American steel corporation by Nippon Steel has caused concern on many levels, especially by the United Steelworkers union and hundreds of steelworkers in the Mon Valley. 

KDKA-TV talked exclusively with Takahiro Mori, vice chairman of Nippon Steel and the head of its global operations, to get answers. 

Nippon Steel’s commitment to the Pittsburgh region 

At times it has felt that U.S. Steel has abandoned this region, by canceling a major investment in its Mon Valley operations and focusing on high-tech and greener steel production in Arkansas. 

“Will Nippon Steel reverse that and focus on the Mon Valley here in Pittsburgh?” Delano asked.

“I made several times to a visit to the Mon Valley, and I understand Mon Valley is a very important part of U.S. Steel,” Mori said. “So, that’s why, as I told you, I made a strong commitment to keep the steel-making legacy of Mon Valley.”

Mori says Nippon will invest $1.4 billion in U.S. Steel and is developing technologies that can reduce by 50 percent the carbon emissions from blast furnaces like those in the Mon Valley.

“It could make the blast furnace in the Mon Valley sustainable,” Mori said. 

“Bottom line: Steel has a future in the Mon Valley under Nippon Steel?” Delano asked. 

“Yes, I believe so,” Mori said. 

So, what about the jobs of local steelworkers at U.S. Steel now protected under current labor agreements with the United Steelworkers union?

“We already committed to keep all the agreements under the current BLA,” Mori said. 

“That’s the Basic Labor Agreement,” Delano said. 

“Yeah, Basic Labor Agreement,” Mori said. 

“We committed to no layoffs, no plant closures, no shift of jobs or production outside the United States,” he added. 

But that labor agreement expires in two years on Sept. 1, 2026. 

“Can you make a commitment to steelworkers that they will not be laid off after that date?” Delano asked. 

“We bring the same principles and values once we begin negotiating with the USW, so that’s all I can say at this moment,” Mori said. 

Union officials tell me they are not satisfied with Nippon’s assurances to date and continue to oppose the deal.

Nippon Steel insists it does not threaten national security  

Nippon Steel’s proposed purchase of U.S. Steel for $14.9 billion has been controversial from the get-go.

Now, Nippon is on a public relations mission to reassure Americans and Western Pennsylvanians that they have nothing to fear from the deal. 

“Why does the largest Japanese steelmaker want to buy U.S. Steel?” Delano asked.

“First of all, we are interested in this market because the United States market is currently growing,” said Mori, who attended the Wharton School of the University of Pennsylvania. 

Mori also reaffirmed that Nippon’s purchase of U.S. Steel would not mean the loss of the company’s name or headquarters in Pittsburgh.  

“You have said that you will not change the name of U.S. Steel?” Delano asked. 

“Yes,” Mori answered. 

“And you will not move its headquarters from Pittsburgh?” Delano asked.

“Yes,” Mori said. 

KDKA-TV reminded Mori of similar promises from Kraft when it purchased Heinz and Bank of New York when it bought Mellon. Neither lived up to their promises. 

“Why should we believe Nippon Steel?” Delano asked Mori. 

“I believe the benefits of this transaction. And we are a company that once we commit, then we pursue it,” Mori said. 

Mori said part of that commitment includes moving its American headquarters for all U.S. operations from Houston, Texas, to Pittsburgh. But among the strongest opponents to this deal, in rare agreement, are President Joe Biden and former President Donald Trump, citing national security issues and steel jobs. 

“I believe there are no national security concerns and this is a gross investment, so the job security is better and create new jobs,” Mori said. 

Reviewing that issue is the Interagency Committee on Foreign Investment in the United States, chaired by Treasury Secretary Janet Yellen. 

When KDKA-TV interviewed Yellen earlier this year, she would not discuss this specific review but said sometimes the committee recommends changes in the deal to protect American interests. 

“Are you open to modifications in this deal if necessary?” Delano said. 

“Yes, actually we are prepared to and also committed to do what it takes to obtain this clearance,” Mori said. 

Mori says Nippon is committed to closing this deal. So, when might this happen? 

“Second half? By the end of this year?” Delano asked. 

“Yeah, right,” Mori said.

“You think that can happen?” Delano responded. 

“Yes, of course. I am confident about that,” Mori said. 

Still lots of concerns, but Mori says he’s meeting with elected officials and others to convince them this is a good deal for Pittsburgh and America.