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© Copyright 2023 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed without permission.Nippon Steel to buy U.S. Steel for $14.1 billion
By MICHELLE CHAPMAN PITTSBURGH©2025 GPlusMedia Inc.
52 Comments
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TaiwanIsNotChina
Please enjoy our unionized workers and don't try to mess with our supply chains, friend Japan.
deanzaZZR
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.
tooheysnew
Don’t be surprised to see a few more cashed up Japanese companies buying US companies (especially in the building industry)
Gene Hennigh
Wow! 14.j1 billion! What a steel!
TokyoLiving
Japan is saving your country's decadent steel industry..
LOL!!..
TaiwanIsNotChina
And this article shows it isn't unwarranted. What is your point?
yakyak
USAJ getting closer.
dagon
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.
Yubaru
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.
Meiyouwenti
Is the ailing, outdated and inefficient US steel maker worth that much money? Remember what happened to Mitsubishi real estate that bought Rockefeller Center.
First15
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).
TaiwanIsNotChina
Yeah, safety goes down with regulation. That makes a lot of sense.
PTownsend
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.
GBR48
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.
dagon
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/
didou
@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
TaiwanIsNotChina
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.
wallace
Japan produces high-quality steel.
nogardflow
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.
First15
Wha about the teachers union, the several Hollywood unions (Actors/Artist/Scripts/etc), the auto union, and the airline union just to name.
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.
And you're wondering why manufacturing is going overseas?
Are you going to also bring up instances such as Unionists bombing The L.A. Times: https://infogalactic.com/info/Los_Angeles_Times_bombing
FizzBit
Hmmmmm
US Steel, Toyota, Honda, etc manufacturing in the US.
I see a connection here.
wallace
Japanese steel is looking at using hydrogen as the energy source.
Brian Wheway
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
First15
If that is the direction that things are going, then start looking for another job. Why is this so hard to understand?
Elvis is here
I love things made from 玉鋼. Japan should step up its production.
Sanjinosebleed
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!
First15
Can you name a single thing that has been solved by throwing more money at it?
OssanAmerica
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.
OssanAmerica
No point. Japan produces huge quantities of steels, from tool steels to powder steels. There's no big market for a traditional legendary steel.
Stefan
If I knew this one month ago I would’ve bought lots of shares
4Tno
Better off in Japan than China
sakurasuki
During this era, anything than China is better.
TaiwanIsNotChina
That's why there are insider trading laws ;-)
Random
Michael, we’re bigger than US Steel. (Hyman Roth)
Desert Tortoise
Yep. You nailed it.
HBJ
An uncompromising politician?
Ass
Truly he who smelt it dealt it
HBJ
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'.
kyushubill
I'd rather a Japanese corporation that a Chinese or Russian one. PERIOD.
JustAGoodOleBoy
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.
Redemption
I think Japanese companies have proven to be good employers in the US.
Peter Neil
Uh, no.
Other countries invested in more modern equipment and processes.
Fighto!
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.
Fighto!
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!
oyatoi
If the boot was on the other foot and US Steel was the one wanting to take over a major here……………dream on.
TaiwanIsNotChina
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.
Desert Tortoise
The DoD does not allow use of foreign steel in US military hardware.
1glenn
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.
TaiwanIsNotChina
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.
TaiwanIsNotChina
Yeah, but the economy is not just the military. If push comes to shove with China, we don't want steel to disappear overnight.
TaiwanIsNotChina
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.
CaptDingleheimer
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.