Nippon Steel's $14.9 billion deal to acquire U.S. Steel has raised concerns and resulted in disappointment that a foreign company would take over an iconic American brand so American U.S. is right there in its name.
But officials also expressed hope it could result in more opportunity for the Region, especially given U.S. Steel's recent track record of disinvesting in mills in East Chicago, Illinois and Michigan. The new owner, for instance, could be approached about selling off unused land in Gary.
"I am deeply concerned by the news that U.S. Steel would be acquired by Nippon Steel, a foreign steel competitor. It is troubling to learn that this historic company will no longer be American-owned and operated. U.S. steelmakers have struggled to compete against subsidized metals made by foreign competitors as it is, and this acquisition further consolidates the industry and puts the livelihoods of hardworking families in question," said Lake County Councilman Randy Niemeyer, who is running as a Republican candidate for the 1st Congressional District.
"Gary Works is U.S. Steel’s largest manufacturing plant and is the largest employer in Gary. Gary Works is a driving force in our community’s economy and America's domestic steel production. We have all seen, first hand, the impact that major employers leaving the Region has caused in our communities. We need economic growth, that protects good-paying jobs for hardworking people. I fear that this acquisition by Nippon Steel will put the livelihoods of Gary Works' hardworking employees at risk."
Niemeyer said the union should have been looped in on the decision to sell.
"I stand in solidarity with the United Steelworkers union whose members were unjustifiably excluded from this process. The voices of every hardworking man and woman deserve to be heard and considered in any decisions that impact their livelihoods," Niemeyer said.
State Rep. Carolyn Jackson, D-Hammond, said she was "surprised and disappointed that another one of our corporations would be sold to a buyer overseas."
"Nippon Steel is a Japanese-based company, and many employees and union members are unhappy about the sale and worried that Nippon will continue to operate as U.S. Steel has in the last few years by closing plants in the Great Lakes area, such as in Granite City, Detroit and East Chicago. Other locations have idled their tin mill," she said. "The closing and idling of plants is not in the best interest of U.S. Steel's many employees. Until Nippon has had some discussions with union representatives, workers will be very apprehensive of their intentions for the company."
Jackson hoped the new ownership would remain committed to the Region.
"I hope Nippon Steel Corporation is willing to be a good neighbor here in Hammond and prioritize the well-being of our residents and environment," she said. "Nippon is about to find out just how much of a manufacturing powerhouse Northwest Indiana is. Our dedicated workforce is a point of pride in the region, and I hope that Nippon recognizes that value and treats employees accordingly."
Gary Mayor Jerome Prince said the transaction might present an opportunity for the city to reclaim part of the seven miles Gary Works occupies along the lakeshore. Parts of U.S. Steel's flagship mill, like the bar mill that once served construction projects in Chicago and beyond, were long ago supplanted by mini mills.
“While the early organizers of U.S. Steel founded the City of Gary, and the company may be the largest employer located in Gary, we have seen a dramatic decrease in the number of Gary families with good-paying jobs in the Gary Works plant. If federal regulators approve the sale of the iconic U.S. Steel to Nippon Steel, I hope the new owners change that trend and begin opening up more employment opportunities for Gary residents," Prince said. "I encourage Nippon Steel to join our city leaders in discussing new opportunities for the acquisition of excess land along the lakefront.”