Japanese steelmaker to acquire United States Steel Corp., owner of Granite City Works
United States Steel Corp, owners of the Granite City Works, is being acquired in a $14.9 billion deal with Nippon Steel.
The sale was announced Monday morning. The transaction was approved by the boards of directors for both companies.
U.S. Steel is based in Pittsburgh, where its headquarters will remain.
Information about the future of Granite City Works was not immediately reported.
U.S. Steel’s new owner said it will honor collective bargaining agreements with the United Steelworkers Union.
“NSC has long admired U. S. Steel with deep respect for its advanced technologies, rich history, and talented workforce and we believe we can jointly take on the challenge of raising our aspirations to even greater heights,” Nippon Steel Corp. President Eiji Hashimoto said in news release. “The transaction builds on our presence in the United States and we are committed to honoring all of U. S. Steel’s existing union contracts.”
David B. Burritt, president and chief executive officer of U. S. Steel, said in a statement: “NSC has a proven track record of acquiring, operating, and investing in steel mill facilities globally – and we are confident that, like our strategy, this combination is truly Best for All. This transaction realizes the tremendous value today in our company and is the result of our Board of Directors’ comprehensive and thorough strategic alternatives process.”
#USSteel Board of Directors unanimously approved the acquisition of U. S. Steel by Nippon Steel, a global leader in steelmaking, innovation and decarbonization. We look forward to becoming the ‘Best Steelmaker with World-Leading Capabilities.’ https://t.co/SGptpF4NWd pic.twitter.com/6NLPgS9aae
— U. S. Steel (@U_S_Steel) December 18, 2023
In November, U.S. Steel Corp., said up to 600 workers face layoffs as the company has “indefinitely” idled the Granite City mill’s primary operations.
These 600 layoffs include 400 workers currently laid off since a blast furnace at the mill was “temporarily” idled in September, a company spokeswoman said.
The plant, known as the Granite City Works, has been the economic focal point for Granite City for generations.
“U. S. Steel has indefinitely idled Granite City’s primary operations and will meet customer demand by leveraging the Company’s active iron and steelmaking facilities,” company spokesperson Amanda Malkowski said at the time.
