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Nippon Steel to buy U.S. Steel for $14.1 billion

52 Comments
By MICHELLE CHAPMAN

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52 Comments
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Please enjoy our unionized workers and don't try to mess with our supply chains, friend Japan.

-15 ( +13 / -28 )

Remember when America was afraid of Japanese industry taking over the US? Many likely do not as that was a long time ago and a completely different economic era.

9 ( +20 / -11 )

Don’t be surprised to see a few more cashed up Japanese companies buying US companies (especially in the building industry)

7 ( +13 / -6 )

Wow! 14.j1 billion! What a steel!

11 ( +17 / -6 )

Please enjoy our unionized workers and don't try to mess with our supply chains, friend Japan.

Japan is saving your country's decadent steel industry..

The U.S. currently ranks No. 4 behind China, India and Japan,

LOL!!..

-4 ( +18 / -22 )

deanzaZZRToday 06:53 am JST

Remember when America was afraid of Japanese industry taking over the US? Many likely do not as that was a long time ago and a completely different economic era.

And this article shows it isn't unwarranted. What is your point?

-15 ( +5 / -20 )

USAJ getting closer.

-6 ( +5 / -11 )

U.S. Steel, the Pittsburgh steel producer that played a key role in the nation's industrialization, is being acquired by Nippon Steel in an all-cash deal valued at approximately $14.1 billion.

US Steel gets bailouts through the 2000s on the US taxpayer dime.

https://www.domain-b.com/economy/world-economy/now-us-steel-industry-asks-for-government-bailout

Nippon steel subsidized by Japanese taxpayers.

Beneficiaries of this deal: Shareholder values and transnational capital.

Socialism for the rich.

6 ( +20 / -14 )

Further proof that Japanese corporations have been making money hand over foot and kept paying their workers crap! By keeping their costs down, they are able to maximize profits, and make mammoth deals like these.

-3 ( +27 / -30 )

Is the ailing, outdated and inefficient US steel maker worth that much money? Remember what happened to Mitsubishi real estate that bought Rockefeller Center.

5 ( +17 / -12 )

Japan is saving your country's decadent steel industry.. 

The reason America's steel industry is so terrible and weak boils down to a few factors, all of which WE did to ourselves. The first is the fact that the we allowed Unions to take control of entire industries across the country and kick out all the people who actually want to work for a living and make money. The second is that the government enforced absolute bone-headed regulations in everything from "environmental impacts" to "employee safety" that, have not only done nothing to actually improve anything but, are the leading causes behind why there's no so many accidents and and mishaps that occur in those industries (And to the point that things were actually safer, less wasteful, and less destructive a century ago when almost none of that regulation existed). The third is that the government also incentivizes companies, through the usage of tax breaks and lower fees, to seek manufacturing in "developing countries" (Instead of domestically) with the "intended" goal of "building up" those "developing countries" (China is still "officially" considered a "developing nation" by the way).

-9 ( +13 / -22 )

First15Today 07:54 am JST

Yeah, safety goes down with regulation. That makes a lot of sense.

10 ( +12 / -2 )

@first 15 : Unions to take control of entire industries across the country and kick out all the people who actually want to work for a living and make money.

As a former union worker, plus someone who's studied US history. I have no recollection of unions ever having taken control over entire industries across the country, and kicking out people who actually want to work for a living..." I do however, know that many US corporations have shifted their operations abroad to countries like China, and that some US Republicans, including Nikki Haley, along with the head of the Republican Party have called for further weakening unions and worker's rights in their ongoing appeals to the wealthiest in the US, while showing the R's long-standing disdain for US workers.

10 ( +16 / -6 )

Paying over the odds to keep US Steel going, should buy Tokyo some serious political favours. Most Western steel companies rely on state support every few years. USS have a new sugar daddy and it isn't costing Washington a dime extra on its gargantuan debt.

7 ( +10 / -3 )

*The first is the fact that the we allowed Unions to take control of entire industries across the country and kick out all the people who actually want to work for a living and make money.*

Corporate shillery is one way to make a living. Acquiescing to shareholder values while labor productivity rises will end up in non-living jobs, which many non-unionized businesses have.

https://www.industriall-union.org/working-towards-a-four-day-week-for-steel-industry

Anti-unionism is one of the pillars of neo-liberal corporatocracy.

https://www.pbs.org/wgbh/americanexperience/features/theminewars-labor-wars-us/

4 ( +7 / -3 )

@Yubaru

Actually, in this industry in Japan, labor cost and electricity cost in Japan are very high compared to concurrent countries like India or China. Many companies here have scaled back their operations for many years due to cost and lack of demands. New technologies increase the furnace efficiencies, reducing CO2 too. Many Japanese companies do survive as they produce very high level and special products required for aviation, aeronautics, etc…

Forget the industry in developed countries. Outside of China and India, some Southeast Asian countries, Vietnam, Thai, Myanmar, Indonesia with lower cost could become key players

4 ( +4 / -0 )

GBR48Today 08:10 am JST

Paying over the odds to keep US Steel going, should buy Tokyo some serious political favours. Most Western steel companies rely on state support every few years. USS have a new sugar daddy and it isn't costing Washington a dime extra on its gargantuan debt.

US debt is in line with other western nations and I would hope our politicians aren't bending over just to unload US Steel and potentially put at risk our supply chain.

1 ( +5 / -4 )

Japan produces high-quality steel.

9 ( +10 / -1 )

It seems to me the problem is that corporations don't reinvest capitol to upgrade their processes such as arc-furnaces which would keep them competitive in the future. Instead they use profits for stock buy backs, high corporate officer salaries and payments to stockholders. I heard a long time ago that Japan and other countries plan 10 to 20 years ahead, while for too many US companies it's all about grab what you can in the here and now.

7 ( +7 / -0 )

I have no recollection of unions ever having taken control over entire industries across the country, and kicking out people who actually want to work for a living..."

Wha about the teachers union, the several Hollywood unions (Actors/Artist/Scripts/etc), the auto union, and the airline union just to name.

further weakening unions and worker's rights

That's an oxymoron. If you're with a union, you don't have "workers rights" because you do what the union tells you whether you like it or not.

https://www.industriall-union.org/working-towards-a-four-day-week-for-steel-industry

And you're wondering why manufacturing is going overseas?

https://www.pbs.org/wgbh/americanexperience/features/theminewars-labor-wars-us/

Are you going to also bring up instances such as Unionists bombing The L.A. Times: https://infogalactic.com/info/Los_Angeles_Times_bombing

-6 ( +2 / -8 )

Hmmmmm

US Steel, Toyota, Honda, etc manufacturing in the US.

I see a connection here.

1 ( +3 / -2 )

Japanese steel is looking at using hydrogen as the energy source.

2 ( +2 / -0 )

I wonder how much investment is planned for this plant? Or is it going to tick along nicely as it is, or is it going to be made to up it's out put, although the Japanese buyout claims it's going to protect workers rights, but is there an agreement that is for a short time, say two years, I've seen this in the past where the buyout co say don't worry your jobs are safe, then things change after the two years, by then the new co knows a lot about the new co, the working practices the workers the not so workers, but after two years these changes go unnoticed in the news paper

1 ( +1 / -0 )

I've seen this in the past where the buyout co say don't worry your jobs are safe, then things change after the two years

If that is the direction that things are going, then start looking for another job. Why is this so hard to understand?

-6 ( +2 / -8 )

I love things made from 玉鋼. Japan should step up its production.

0 ( +4 / -4 )

The US can throw 100s of billions at Ukraine and Israel but can't find the money to save a critical manufacturer like this...just shows how backwards the US has become!

-3 ( +4 / -7 )

but can't find the money to save a critical manufacturer like this

Can you name a single thing that has been solved by throwing more money at it?

-5 ( +0 / -5 )

MeiyouwentiToday  07:44 am JST

Is the ailing, outdated and inefficient US steel maker worth that much money? Remember what happened to Mitsubishi real estate that bought Rockefeller Center.

Commercial Real Estate values are a completely different animal from a fundamental core infrastructure industry like steel manufacture. The latter ties directly into the US economy as a whole. Which is why a foreign buyer/investor that is not a US ally would ever be permitted to do so. Like China.

6 ( +6 / -0 )

Elvis is hereToday  09:24 am JST

I love things made from 玉鋼. Japan should step up its production.

No point. Japan produces huge quantities of steels, from tool steels to powder steels. There's no big market for a traditional legendary steel.

4 ( +6 / -2 )

If I knew this one month ago I would’ve bought lots of shares

1 ( +2 / -1 )

Better off in Japan than China

8 ( +9 / -1 )

Remember when America was afraid of Japanese industry taking over the US? Many likely do not as that was a long time ago and a completely different economic era.

During this era, anything than China is better.

0 ( +4 / -4 )

StefanToday 09:42 am JST

If I knew this one month ago I would’ve bought lots of shares

That's why there are insider trading laws ;-)

3 ( +5 / -2 )

Michael, we’re bigger than US Steel. (Hyman Roth)

3 ( +3 / -0 )

It seems to me the problem is that corporations don't reinvest capitol to upgrade their processes such as arc-furnaces which would keep them competitive in the future. Instead they use profits for stock buy backs, high corporate officer salaries and payments to stockholders. I heard a long time ago that Japan and other countries plan 10 to 20 years ahead, while for too many US companies it's all about grab what you can in the here and now.

Yep. You nailed it.

4 ( +5 / -1 )

Can you name a single thing that has been solved by throwing more money at it?

An uncompromising politician?

-2 ( +0 / -2 )

Truly he who smelt it dealt it

-4 ( +1 / -5 )

I heard a long time ago that Japan and other countries plan 10 to 20 years ahead...

The main problem with this approach is that it's easy to avoid the fact that we always live in the now.

'We can't increase wages now because it's not financially the right time. Things are financially good now, but we need to be frugal to prepare for when times are bad'.

1 ( +3 / -2 )

I'd rather a Japanese corporation that a Chinese or Russian one. PERIOD.

11 ( +11 / -0 )

Back to the 1980's. The Nikkei is soaring and Japan is buying up US assets. Now if we could just get music like we had back then.

1 ( +3 / -2 )

I think Japanese companies have proven to be good employers in the US.

1 ( +1 / -0 )

First15Today  07:54 am JST

Uh, no.

Other countries invested in more modern equipment and processes.

7 ( +7 / -0 )

Very promising news. Good to see Japanese companies continue to expand into rich foreign markets.

Japan will ensure that US steel is brought up to Japanese quality - important as a lot of it will go towards building Toyota's, Honda's, Mazdas etc.

This will be a huge breath of fresh air for the dwindling steelworkers of America.

1 ( +4 / -3 )

It would be good to see Japan continue to buy into USA food and beverage corporations - and monopolise the sector. Who knows - they may well make American food healthier!

3 ( +6 / -3 )

Remember when America was afraid of Japanese industry taking over the US? Many likely do not as that was a long time ago and a completely different economic era.

If the boot was on the other foot and US Steel was the one wanting to take over a major here……………dream on.

0 ( +0 / -0 )

Looking at the list of steel producers and man, the US needs to ban imports from China of all steel needed for military components. This could be pretty much all steel from China period.

0 ( +0 / -0 )

Looking at the list of steel producers and man, the US needs to ban imports from China of all steel needed for military components. This could be pretty much all steel from China period.

The DoD does not allow use of foreign steel in US military hardware.

1 ( +1 / -0 )

So, if Nippon Steel keeps USS plants open, that will put them in the position of profiting from protectionist economic policies. Conversely, if they shutter USS plants, they will benefit from opposing protectionist economic policies.

1 ( +1 / -0 )

1glennDec. 21 07:44 pm JST

So, if Nippon Steel keeps USS plants open, that will put them in the position of profiting from protectionist economic policies. Conversely, if they shutter USS plants, they will benefit from opposing protectionist economic policies.

I don't know exactly what the union contract says, but I suspect Nippon Steal would be dealing with civil action from 100% of the fired workers and paying them for a long time to come.

0 ( +0 / -0 )

Desert TortoiseDec. 20 04:27 am JST

Looking at the list of steel producers and man, the US needs to ban imports from China of all steel needed for military components. This could be pretty much all steel from China period.

The DoD does not allow use of foreign steel in US military hardware.

Yeah, but the economy is not just the military. If push comes to shove with China, we don't want steel to disappear overnight.

0 ( +0 / -0 )

My question is, are they going to change their branding to "US Steel, a subsidiary of Nippon Steel"? Could lead to some double takes from customers.

0 ( +0 / -0 )

To hell with this deal. Steel is a cornerstone of national security. If our US "leaders" don't block this deal, they need to be run out of DC on a rail.

0 ( +0 / -0 )

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