U.S. Steel warned Wednesday that it may cut jobs and move its headquarters out of Pittsburgh if a planned sale to Japanese steelmaker Nippon Steel Corp. falls through.
Nippon Steel announced in December that it would buy U.S. Steel, sparking outrage from lawmakers of all political parties who said the deal could undermine national security and industrial capacity.
President Biden, Vice President Harris and former President Trump have all voiced their opposition to the agreement.
“U.S. Steel must remain American owned and American operated, and I will always support American steelworkers,” Harris said at a rally in Pittsburgh on Monday.
The company said workers plan to rally at the U.S. Steel Tower in Pittsburgh on Wednesday in support of the agreement and to call on elected officials.
“We want elected leaders and other key decision makers to recognize the benefits of this transaction and the inevitable consequences if it fails,” U.S. Steel President and CEO David Barritt said in a press release.
Nippon Steel announced plans last week to invest more than $2.7 billion in equipment replacement and upgrades to improve competitiveness and preserve jobs. U.S. Steel said in a press release that it would “not provide similar funding” if the deal falls through.
“If the deal falls through, we wouldn't do it,” Barritt said. He said in an interview “I just don't have the money,” he told The Wall Street Journal.
U.S. Steel said it would “significantly pivot” away from its blast furnace facilities, which are funded by Nippon Steel, in a move that could “put thousands of highly paid union jobs at risk.”
The company also warned that if the deal falls through, “significant questions will be raised” about its longtime headquarters in Pittsburgh.
Asked by The Hill how many jobs were at stake, a U.S. Steel spokesman said the company currently has about 3,800 employees in Pennsylvania and 4,300 at its Gary, Indiana, plant that will receive Nippon Steel's investment.
A spokesperson did not respond to The Hill's questions about where the company would move its headquarters.
Updated 10:37 a.m.
