The merger of Japan’s Nippon Steel Co. and United States Steel Co. will likely impact a Pine Bluff facility owned by U.S. Steel.
Nippon Steel and U.S. Steel said in a news release Wednesday their partnership would protect and create more than 100,000 jobs through “unprecedented massive investments in steelmaking in the United States” across U.S. Steel’s locations in Arkansas, Pennsylvania, Indiana, Minnesota and Alabama.
U.S. Steel owns Wheeling Machine Products in Pine Bluff and Big River in Osceola.
U.S. Steel acquired Wheeling Machine Products in 2007, according to a company profile. It is considered a worldwide leader in coupling technology for petroleum, water well, heating, plumbing and air conditioning markets. Its couplings and specialized couplings ranging from 2.375 to 20 inches are used to connect individual sections of oilfield casing and tubing.
Wheeling’s Pine Bluff location is at 5411 Industrial Drive South.
Independent reporting for Pine Bluff & Jefferson County since 1879.
Asked how the merger would impact Wheeling, a U.S. Steel spokesman said American jobs are protected and cannot be offshored under a national security agreement U.S. Steel and Nippon Steel entered into with the U.S. government. U.S. Steel will maintain its operating blast furnace production locations and capacity in the U.S. for the next 10 years.
Nippon Steel is focused on revitalizing, enhancing and expanding U.S. Steel facilities, according to the spokesman. The company has committed to $11 billion by 2028, with an additional $3 billion expected.
With the partnership, U.S. Steel will retain its name and remain headquartered in Pittsburgh. Under the NSA, U.S. Steel will also issue a golden share, or a stock that grants the owner a decisive vote, to the government.
Also under the NSA, U.S. Steel said:
A majority of the members of the U.S. Steel board will be U.S. citizens;
U.S. Steel’s key management personnel including the CEO will be U.S. citizens;
U.S. Steel will maintain capacity to produce and supply steel from its U.S. production locations to meet market demand in the U.S.; and
Nippon Steel will not prevent, prohibit or interfere with U.S. Steel’s ability to pursue trade action under U.S. law.
“We share President Trump’s commitment to protect the future of the American steel industry, American workers and American national security, and we look forward to building a stronger and brighter future for U.S. Steel,” Eiji Hashimoto, Nippon Steel’s representative director, chairman and CEO said in a news release.
U.S. Steel CEO Dave Burritt credited Trump’s “bold leadership” for helping secure the best possible deal, calling Wednesday a momentous day for the country and the American steel industry.
“With this partnership, the Nippon Steel Group’s annual crude steel production capacity is expected to reach 86 million tons, bringing it closer to Nippon Steel’s global strategic goal of 100 million tons of global crude steel production capacity,” U.S. Steel said in the release.