After more than a year of off-again, on-again negotiation talks, Nippon Steel’s $15 billion acquisition of American staple U.S. Steel has officially been completed, according to releases from both companies.
The details for Gary could be transformative. Nippon’s leadership has already earmarked at least $1 billion for Gary Works, including a rebuild of the aging Blast Furnace #14, which local officials say could stretch the furnace’s life by two decades and open the door to cleaner, more efficient steelmaking.
For the roughly 4,000 United Steelworkers who run furnaces in Gary, key questions remain regarding which mills will get upgrades, which lines might be idled, and how many jobs will ultimately be protected.
Mark Lash, president of United Steelworkers Local 1066, which represents workers at Gary Works, said the union has no information beyond what has already been reported publicly.
Asked about how local steelworkers are reacting to the deal, Lash said, “We just don’t have enough details yet to know what to think.”
Details of the deal reveal that U.S. Steel will retain its iconic name despite the acquisitions.
“This is a momentous day for our country, our communities, and the American steel industry,” said U.S. Steel CEO Dave Burritt.
“Through our partnership with Nippon Steel, we are poised to grow better and bigger, with transformative investment, cutting-edge technology, and the creation of good-paying jobs across the United States.”
Included in the deal is a legally binding National Safety Agreement that sets strict ground rules for how the new owners must operate in the United States. Investment is a major component of the agreement, with Nippon agreeing to make $11 billion in new investments in U.S. Steel by 2028. U.S. Steel will also remain a U.S.-incorporated entity and will maintain its headquarters in Pittsburgh.
The agreement also stipulates that both the majority of the members of U.S. Steel’s board of directors and key members of the company’s management team, including its CEO, will be U.S. citizens.
To make sure those promises stick, the federal government is taking a rare “golden share” — a single, veto-powered stake that lets Washington block any move to ship jobs overseas, shutter mills, or slash the investment plan.
The U.S. government will have certain rights, including a set of rights reserved for the president or his designee on specific matters like transferring of production outside the United States, material acquisitions of competing businesses in the United States, and certain decisions on closure or idling of U.S. Steel’s existing U.S. manufacturing facilities, trade, labor, and sources outside the United States.
National security was the top concern of many lawmakers, including U.S. Rep. Frank Mrvan, who represents Gary in Indiana’s 1st Congressional District and serves as the vice chairman of the Congressional Steel Caucus.
“It is clear that this unified front of concern and advocacy played a crucial role in shaping the terms, incentives, and safeguards now in place,” said Mrvan.
Gary Mayor Eddie Melton, who took office just weeks after the original announcement of the potential acquisition in December 2023, has continually backed the deal, attributing his support to Nippon’s investment pledges and guarantee to keep jobs in the city.
“Throughout this process, I have worked tirelessly behind the scenes — meeting with federal officials, industry leaders, and labor representatives — to advocate for our community and ensure Gary’s steelworkers had a voice at the table,” Melton said regarding the finalized deal. “I’m hopeful that as the details of this partnership emerge, they will provide even greater assurance to our workers and their families about the bright future ahead.”
This story has been updated.