BRADDOCK, Pa. — Japanese-based Nippon Steel, as part of its plans to acquire US Steel, announced Wednesday it expects to invest “no less than $1 billion” into the US Steel plants in the Mon Valley: the Edgar Thomson plant in Braddock, Clairton Coke Works in Clairton, and the Irvin Plant in West Mifflin.
According to Nippon Steel, the investment will improve yield and product quality, while also increasing energy efficiency and enhancing overall operating effectiveness.
“I think it’s always a good idea to invest the area, especially the local steel plants,” said community member Bryan Frear, who spoke to Channel 11 in Braddock.
“I think it’s a great idea,” added community member Nicholas Stone. “They’ve been dead since the steel mills went down and that’s something that could reinvigorate them.”
Frear and Stone are happy to see investment in the Mon Valley, but they’re wary of where the money is coming from.
“I don’t like foreign companies owning businesses in the United States. Japan’s not that bad but it’s just dangerous. They can give a billion, they can take a billion away,” Stone said.
“As long as it stays in the community and it’s not going over to Japan,” Frear added.
According to Nippon Steel, the investment will improve yield and product quality, while also increasing energy efficiency and enhancing overall operating effectiveness.
In a statement, the Japanese company said, “Nippon Steel plans to ensure Mon Valley Works operates for decades to come and will undertake the necessary investments so that it remains viable and provides jobs for future generations of steelworkers in Pennsylvania.”
The United Steelworkers union fired back at Nippon Steel in a statement of their own saying, “Nippon talks a big game, but at the end of the day, a press release is not a contract. Even as it pays lip service to one of the union’s ongoing concerns, Nippon continues to duck the USW’s input.”
Nippon Steel also announced plans to invest $300 million into the US Steel plant in Gary, Indiana.
Nippon’s takeover of US Steel is still awaiting regulatory approval.
President Joe Biden has said his administration may take steps to try to block the deal.
US Steel sent Channel 11 the following statement:
“Nippon Steel’s announcement of its plan to invest approximately $1.3 billion in U. S. Steel union-represented facilities, on top of the $1.4 billion capital commitment they previously announced, is further evidence of its unwavering commitment to U. S. Steel and all of our stakeholders.
These commitments far exceed what U. S. Steel would commit to in the absence of this transaction and demonstrate Nippon Steel’s desire not only to complete the transaction but also to protect and grow U. S. Steel. The investments announced by Nippon Steel will require significant capital expenditures beyond calendar year 2026 and the term of the current BLA. The bottom line is these are investments in the future of integrated American steelmaking and the employees, families and communities that rely on it. U. S. Steel will be a much stronger company as a result of the transaction and these investments – the entire American steel industry will be stronger and more globally competitive, too.”
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