U.S. Steel CEO Warns of Potential Closures

U.S. Steel’s CEO David Burritt warned of possible mill closures and a headquarters move from Pittsburgh if the sale to Nippon Steel fails, as reported by the Wall Street Journal.

Burritt, who has led the company since 2017, emphasized the importance of Nippon Steel’s nearly $3 billion investment to modernize U.S. Steel’s aging facilities, crucial for maintaining competitiveness and protecting jobs. “We wouldn’t do that if the deal falls through,” Burritt stated, emphasizing financial constraints.

His remarks follow those of Democratic presidential nominee Kamala Harris, advocating for domestic ownership of U.S. Steel. The $14.1 billion deal also faces opposition from President Biden, Republican nominee Donald Trump, and the United Steelworkers union.

Harris’ comments could complicate the deal further if regulatory reviews extend under a new administration. Earlier this week, U.S. Steel’s shares fell by 6%, closing at $35.60.

On Wednesday, U.S. Steel will rally employees in Pittsburgh to communicate the Nippon Steel deal benefits. Despite Nippon Steel lobbying for support, opposition remains strong.

Nippon Steel, the world’s fourth-largest steel producer, has increased its investment commitment to $2.7 billion while promising no layoffs through 2026. U.S. Steel has struggled financially, suffering losses for a decade prior to 2020.

Burritt noted that expanding the Arkansas mill could lead to closing the Mon Valley operation, the last steelmaking facility in Pittsburgh. “If that mill won’t make it to the next decade, why would we stay there?” he questioned, hinting at a potential relocation of headquarters to the southern region.

Nippon Steel’s cash offer of $55 per share for U.S. Steel surpassed Cleveland-Cliffs’ proposal and received shareholder approval earlier this year.