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U.S. Steel says it will remain "American" in Nippon partnership. What that means is uncertain. - CBS Pittsburgh

Published 1 day ago4 minute read

/ CBS Pittsburgh

Ownership details surrounding U.S. Steel and Nippon Steel partnership remain murky

Ownership details surrounding U.S. Steel and Nippon Steel partnership remain murky 03:22

With the final details of the ownership structure for the not-yet-finalized partnership between U.S. Steel and Japan-based Nippon Steel still up in the air, it's an open question of whether the company will be "American" in a technical sense. 

Some local leaders disagree on how to define what exactly an "American" company is.

President Trump, who said he has final say on a deal, first announced the partnership by saying U.S. Steel would remain in America, with U.S. Steel then coming out with a statement saying the company would remain "American." Mr. Trump said months ago that he would allow Nippon to invest in U.S. Steel, but he opposed a purchase.

"America to me is owning the company, having ownership," said Cheryl Freedman, a Pleasant Hills Borough Council member. "I feel that being an American-owned company is important."

She attended Mr. Trump's rally last Friday at U.S. Steel's Irvin Works in West Mifflin, which is not far from Pleasant Hills, and said she initially felt excited as she heard about the investments that were announced. 

She said she started to feel less comfortable once she started hearing words around her that she didn't expect after the rally. Specifically, she spoke with one individual whom she thought should know the details. 

"That person said 'purchase.' And I said, 'What do you mean purchase?' And, 'Well, we're not real sure yet. We don't have the details,'" she recalled their conversation going.

To make her feel comfortable, she wants to hear what the ownership structure will be. She hopes Americans will own at least 51% of the company.

West Mifflin Mayor Chris Kelly, who has been a vocal proponent of a deal with Nippon Steel, said that while he's unsure if the new U.S. Steel would be American in a technical sense, it doesn't have to be for it to be an American company.

KDKA asked him to address the concerns people have about the yet-to-be announced or finalized ownership structure. 

"The mining is going to be done by Americans. The melting is going to be done by Americans. The manufacturing is going to be done by Americans," Kelly said. 

"Is that how you see what it means to be an American company?" KDKA asked Mayor Kelly.

"Absolutely," he responded.

He believes a deal with Nippon Steel will save thousands of jobs, along with the steelmaking legacy in Pittsburgh.

"Let me make this easy," Kelly said. "It's going to be called U.S. Steel. That's one. It's going to be located in the city of Pittsburgh, headquarters. ... The guaranteed no layoffs, no plant closings and the furnaces are going to operate at capacity for 10 years. We win on that."

The known details come from Pennsylvania U.S. Senator Dave McCormick and state Senator Kim Ward. They have said Americans would have a majority on the U.S. Steel board and what McCormick called a "golden share." 

"The golden shares is the oversight of the United States government," Kelly said. "They're going to be part of the decision-making as far as national security."

The details from McCormick and Ward echo what Mr. Trump said at last week's rally. 

"Most importantly, U.S. Steel will continue to be controlled by the USA. Otherwise, I wouldn't have done the deal," Mr. Trump said. 

Freedman is, however, looking for more than control; she wants ownership. 

"I would like to see our companies, our American companies, remain owned by America," Freedman said. 

United Steelworkers International leadership has said it also wants more details, saying that partnering with Nippon is risky.

Most steelworkers and Mon Valley leaders KDKA-TV has spoken with don't care what the ownership structure is; they just want whatever will preserve jobs. 

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