*
Head of union opposing U.S. Steel sale unconvinced of
long-term
viability
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Fears Nippon will import steel into U.S. from
international
mills
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Nippon trying to close deal before Donald Trump takes
office
By John Geddie
Dec 10 (Reuters) - The head of a powerful labour union
opposing U.S. Steel's sale to Japan's Nippon Steel ( NISTF )
said he has not received assurances that the would-be
owners are committed to ensuring the lasting success of the
strategic U.S. firm.
Nippon Steel's ( NISTF ) $15 billion takeover bid has been criticised
by both President Joe Biden and President-elect Donald Trump and
is subject to a national security review later this month by the
secretive government panel CFIUS.
David McCall, the head of the United Steelworkers union,
spoke to Reuters on Monday as Nippon Steel ( NISTF ) published details of
the various commitments it has made to get the union's backing
including on job security and investments in facilities.
One of McCall's top concerns is that Nippon may import steel
into the U.S. from its international mills, a move he worries
would erode a company that helped build the Empire State
Building and arm allied forces in World War Two.
"When we've had discussions with them there's been nothing
that would assure us that there's a long-term viability in the
operations," McCall told Reuters via video call from his office
in Pittsburgh, Pennsylvania.
"They (Nippon Steel ( NISTF )) want a return on that investment and I
understand that but it can't be harvesting our facilities and
letting them slowly but surely over a period of time deteriorate
so that they can then bring product in from their other
facilities around the world and have access to our market."
Nippon Steel ( NISTF ) has previously denied it will import steel from
its international mills after it seals the deal and repeatedly
said it aims to become an "insider" in the U.S., a market
critical to its future growth.
Nippon Steel ( NISTF ) and U.S. Steel did not immediately respond to a
request for comment for this article.
McCall also criticised the Japanese suitors for not trying
to stop or intervene in what he called "bullying" from U.S.
Steel CEO David Burritt to close the deal.
Burritt told the Wall Street Journal in September that the
firm would close steel mills and likely move its headquarters
out of Pittsburgh if the sale failed.
"He's like a schoolyard bully demanding your lunch money,"
he said of Burritt, adding the threats had "scared the hell" out
of some of his members.
Nippon Steel ( NISTF ) is racing to close the deal before Trump - who
has vowed to block the transaction - takes office on Jan. 20.