No downside to Nippon Steel/U.S. Steel deal

Growing up in San Bernardino, California in the 1980s was an experience that shaped me in many ways. One of the highlights of those years was playing high school football, and one of our fiercest rivals was Fontana High School. Fontana was known for having one of the toughest football teams in San Bernardino County, and our games against them were always intense and hard-fought.

But Fontana was more than just a football rival. It was a town with a long and proud history of steel production. The Kaiser steel production facility, a major employer in the area, closed its doors in 1983. This closure had a devastating impact on the town, as it was not just an economic blow, but a blow to the identity and pride of the community. Fontana had been producing steel dating back to the early days of World War II, and the closure of the plant gutted the proud town.

Fast forward to today, and we are faced with a new challenge. Critics of the proposed purchase of U.S. Steel by Japan-based Nippon Steel Corporation have gone to great lengths to discredit the deal, even going as far as to assert that the Japanese company would use the merger to support Chinese military expansion. These allegations reek of desperation and are baseless.

The merger between U.S. Steel and Nippon Steel is a necessary and promising move for the American steel industry. The board of U.S. Steel has stated that this merger is crucial for preserving the rich history of the steel brand and ensuring its future success. By integrating Nippon Steel’s advanced technologies into U.S. Steel’s facilities, the company will be able to manufacture high-grade steel products, such as electrical steel and automotive flat steel, for customers in the United States and North America.

President Biden’s opposition appears ill-informed and confused. Biden’s stance contradicts the principles of innovation, progress, and forward-thinking.

Moreover, this merger has significant implications for national security and the domestic steel industry. Japan is a close U.S. defense treaty ally, and its investment in the American steel industry will secure critical supply chains for U.S. steel customers and suppliers. This will enhance the resilience of these supply chains and support vital American industries, including automotive manufacturers. The equitable partnership with a Japanese company strengthens the bond between the two nations, ensuring a reliable supply of steel for defense and infrastructure needs.

Contrary to concerns about outsourcing and job losses, Nippon Steel has reassured stakeholders that they have no plans to shift production to other locations outside of the United States. Their focus is on growing U.S. Steel into the best, strongest, and cleanest steelmaker in the country, providing high-quality American-made steel. This commitment to retaining and expanding U.S. Steel’s business will help preserve and create jobs within the American steel industry.

Reflecting on my personal experiences growing up in San Bernardino, I recognize the impact that the steel industry has on local communities. The closure of the Kaiser steel production facility in Fontana was a significant blow to the town, which had a proud history as a steel-producing town. However, the proposed merger between U.S. Steel and Nippon Steel offers hope for the industry’s revival and the prosperity of local communities.

This merger between U.S. Steel and Nippon Steel is a crucial step toward revitalizing the American steel industry. By introducing advanced technologies, supporting national security, and strengthening supply chains, this merger has the potential to make U.S. Steel a leader in the industry. It also ensures the production of high-quality American-made steel, contributing to the country’s economic growth and stability.

The merger presents a unique opportunity to preserve the history and legacy of the American steel brand while embracing a cleaner and more sustainable future.

Leif Larson is a media consultant and media strategist for multiple political candidates and issue campaigns across the country.

Image: Nippon Steel