President Biden opposes U.S. Steel sale to Japanese company, will it impact Birmingham?

President Joe Biden has come out against the sale of U.S. Steel to Japan’s Nippon Steel.

Below is the statement from the White House: 

It is important that we maintain strong American steel companies powered by American steel workers. I told our steel workers I have their backs, and I meant it. U.S. Steel has been an iconic American steel company for more than a century, and it is vital for it to remain an American steel company that is domestically owned and operated.

In December 2023, Japan’s Nippon Steel announced its intention to purchase the Pittsburgh-based United States Steel Corporation (U.S. Steel) for $14.1 billion. 

Why does this matter in Birmingham?

Once the largest employer in Birmingham, U.S. Steel has had a formidable presence in Alabama for over a century. 

In 1907, the Pittsburgh steel manufacturer acquired a controlling interest in the Birmingham-based Tennessee Coal, Iron and Railroad Company (TCI). 

Through TCI, U.S. Steel owned the Ensley Works steel plant and constructed the Fairfield Works steel plant, which opened a new, $412M Electric Arc Furnace (EAF) in 2020. 

Currently, U.S. Steel operates 2 locations in the Birmingham area:

• Fairfield Tubular Operations
• Fairfield Works 

In addition, U.S. Steel Real Estate—a division of U.S. Steel—is a major land-owner in Jefferson County, involved in public and private development partnerships such as The Preserve, Trace Crossings, Ross Bridge and more. 

What’s next for U.S. Steel?

According to a Thursday story in NPR, former President Trump opposes the sale, along with the two Senators from Pennsylvania.

Nippon Steel has said U.S. Steel will remain headquartered in Pittsburgh and it plans to honor all agreements in place with the United Steelworkers Union and other employees.

What do you think of the acquisition of U.S. Steel by Nippon Steel? Tag us @bhamnow to let us know.