Nippon Steel Corp. clarified its spending plans at U.S. plants owned by United States Steel Corp. in the latest effort to win over workers and politicians to buy the Pittsburgh steel mill.
After meeting with United Steelworkers leaders on Monday, the Japanese firm published a letter to US Steel employees. In it, Nippon Steel said it had made new commitments regarding where and when its previously announced $1.4 billion in capital spending would be spent. This amount does not include maintenance or depreciation, Nippon said.
The letter indicates there has been at least some interaction between the parties in recent weeks, and Nippon Steel said USW has asked for more details about its capital spending plans. It's unclear whether the letter will change USW management's long-standing official position opposing the deal, but it does suggest the Japanese buyer is rushing to do everything it can to get approval from the powerful union before a federal review into approving the $14.1 billion takeover is completed. dollars.
“During our recent discussions with USW management, we have listened carefully to USW's requests for additional information about our future plans,” Nippon Steel said, adding that following these negotiations on Dec. 2, it sent a follow-up letter of commitment to USW President David McCall “that addressed all concerns raised.”
The Japanese steelmaker said it released the letter after “constructive dialogue” with Pennsylvania Gov. Josh Shapiro and others, making it clear that the Democratic governor, who has not taken a public position on the acquisition, is involved in ongoing negotiations. The deal's collapse will renew questions about the future of the steel industry in Pennsylvania, where political outcry has been concentrated.
"While the final decision on this proposed deal will ultimately rest with the White House alone, the Governor will remain actively involved in the process," a spokesman for Shapiro's office said Monday.
Nippon Steel's letter also makes the previously announced $1.3 billion in additional capital expenditures legally binding. This money was promised after the arbitration meeting. Nippon Steel is seeking to allay concerns about job safety at plants using traditional iron ore blast furnace production as part of its expected deal.
