ST. LOUIS—The mayor of Granite City is cheering President Biden’s decision to block the nearly $15 billion deal that would have Japan’s Nippon Steel purchase U.S. Steel, saying the companies never came forward with specifics on how the agreement would impact operations in the Metro East.
Mayor Mike Parkinson told Spectrum News he was pleased to wake up to the news that came after a protracted governmental review. He said it was good that “Washington sees this is something that’s not good for America….I think the President got this right.”
A government panel that reviewed the deal to address potential national security concerns over having steel production in the hands of a foreign owner ultimately deadlocked and put the decision in the hands of President Biden, who said for months that he supported keeping U.S. Steel as a U.S. company. It’s a posture that Vice President Kamala Harris and President-Elect Donald Trump also championed on the campaign trail.
In Granite City, roughly 1,000 workers have been on a temporary layoff dating back as far as 2019, when U.S. Steel idled a blast furnace and then idled a second one in October of 2023. Union leaders have said that some of those workers have otherwise moved on, with roughly 700-750 union jobs remaining at the operation.
Parkinson said Nippon and U.S. Steel have not come forward either to him or the public in general with specific plans for investment in Granite City.
“If they have a good plan, then show it. Put your money where your mouth is,” Parkinson said.
Nippon Steel and U.S. Steel blasted the decision, saying in a joint statement that Biden’s blocking the deal “reflects a clear violation of due process and the law” in a process it said was “manipulated” to advance Biden’s political agenda.
It also insisted that Biden cited no credible evidence of the deal presenting a national security problem and suggested it will sue, saying “we are left with no choice but to take all appropriate action to protect our legal rights.”
