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Nippon Steel Corp. clarified its spending plans at U.S. mills owned by United States Steel Corp. as part of last-ditch efforts to win over workers and politicians for its bid to buy the Pittsburgh-based steelmaker.
After meeting with United Steelworkers leaders, the Japanese firm released a letter to U.S. Steel staff on Monday. In it, the Japanese firm said it made new commitments with regards to where and when a previously announced $1.4 billion would be spent. The figure doesn’t include maintenance or depreciation, Nippon said.
“During our recent discussions with the USW leadership, we listened carefully to the USW’s requests for further details on our future plans,” the company said.
The letter also makes a previously announced additional $1.3 billion in capital expenditures legally binding. That money had been promised after an arbitration meeting, so had not yet been a binding proposal.
Nippon Steel is seeking to allay concerns over job security at plants that use traditional blast-furnace production from iron ore as part of its pending $14.1 billion takeover of U.S. Steel.
Both President Joe Biden and President-elect Donald Trump opposed the deal, which was announced a year ago and remains before federal regulators, including a review by the Committee on Foreign Investment in the US, or Cfius.
U.S. Steel shares added about 2% before normal trading hours on Monday. Nippon Steel shares were down 0.3%.
U.S. Steel has major operations in Indiana employing about 4,000 people. The company founded the city of Gary in Indiana in 1906 with its Gary Works operation that at one time employed some 30,000 people. The steelmaker also operates the Midwest Plant in Portage.
Nippon has several subsidiaries in Indiana, including Nippon Steel Pipe America in Seymour, Suzuki Garphyttan Corp. in South Bend, and Nippon Steel & Sumikin in Shelbyville.
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