Reviewed by: Pat Byington
Trump approves sale of U.S. Steel to Japan-based Nippon Steel
Reading time: 4 minutes
On Friday, June 13, United States Steel Corporation (U.S. Steel) and Nippon Steel Corporation (Nippon Steel) announced that President Trump had signed an Executive Order approving the sale of the historic American steel manufacturer to Japan-based Nippon Steel.
Once the largest company in the world, U.S. Steel has long maintained a significant presence in Alabama through its real estate holdings and its steel plants in Fairfield.
U.S. Steel sold to Nippon Steel
In December 2023, Nippon Steel announced its plans to purchase Pittsburgh-based United States Steel Corporation (U.S. Steel) for $14.1 billion. According to Nippon Steel, the acquisition of U.S. Steel would bring its total annual crude steel capacity to 86 million tons and propel Nippon Steel to the second-largest steel company in the world, behind China Baowu Steel Group Corp., Ltd.
Nippon Steel’s $14.1 billion offer was preceded by offers from two U.S.-based competitors—a $7.3 billion offer from Cleveland-Cliffs and a $10 billion offer from Esmark.
Although U.S. Steel stockholders voted overwhelmingly to approve the merger with Nippon Steel, others spoke out against the sale, including United Steelworkers, several members of Congress, then-Republican presidential nominee Donald Trump and the Biden Administration.
“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.”
Statement from President Biden on U.S. Steel, March 14, 2024
Despite promising to block the deal, President Donald Trump has reversed his position and signed an Executive Order approving the partnership. As part of the deal, Nippon Steel North America, Inc. will make approximately $11 billion in new investments by 2028, including a new greenfield project on previously undeveloped land.
“We thank President Trump and his Administration for their bold leadership and strong support for our historic partnership. This partnership will bring a massive investment that will support our communities and families for generations to come. We look forward to putting our commitments into action to make American steelmaking and manufacturing great again.”
Nippon Steel North America, Inc.
About U.S. Steel and its presence in Birmingham
U.S. Steel was formally created in 1901, when investment banker J.P. Morgan merged Andrew Carnegie’s Carnegie Steel, Elbert H. Gary’s Federal Steel and William Henry Moore’s National Steel into one company. In the following decades, U.S. Steel’s rapid growth led it to become the largest company in the world and the first company valued at more than $1 billion. At its peak, U.S. Steel made 67% of all steel manufactured in the country.
However, U.S. Steel has diminished in recent years, falling from the world’s eighth-largest steel producer in 2008 to the 24th-largest in 2022.
Despite its decline, U.S. Steel has maintained a significant presence in Birmingham since 1907, when it first acquired a controlling interest in the Birmingham-based Tennessee Coal, Iron and Railroad Company (TCI). Currently, U.S. Steel operates 2 locations in the Birmingham area:
- Fairfield Tubular Operations
- Fairfield Works
In addition to its steel manufacturing plants, 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.
Do you support the acquisition of U.S. Steel by Nippon Steel? Tag us @bhamnow to let us know.
