This will be another huge hit to what I call “Old Pittsburgh”. It’s still very much a steel city, especially in the South Hills. Interested to see that how it impacts the local economy.
by south hills, guessing you mean the Mon Valley?
US Steel, once the largest corporation, agrees to sell to Nippon Steel
191–200 of 207 posts
Re: US Steel, once the largest corporation, agrees to sell to Nippon Steel
#192Earlier quoted context omitted.
an easy response is "Our government no longer believes steel is critical to our national security" Cant find mention of US steel being sold, perhaps this? > In 1984, the federal government prevented U.S. Steel from acquiring National Steel, and political pressure from the United States Congress, as well as the United Steelworkers (USW), forced the company to abandon plans to import British Steel Corporation slabs htt…
The country that will acquire is also important in this equation. Russians were blocked from buying Oregon steel for example. Japan is more like a protectorate of the US than a fully independent country post WW2, with specific articles of the constitution that block army sizes, specific military equipment, agreements for maintenance of permanent US bases and troops in the country etc. Even when recently they decided…
Japan was one of the biggest trade threat for the US until around 2000, caused many trade conflicts, so perhaps this would be stopped if it's in 1985. It's no longer so big, now it's China.
Re: US Steel, once the largest corporation, agrees to sell to Nippon Steel
#193Re: US Steel, once the largest corporation, agrees to sell to Nippon Steel
#194Earlier quoted context omitted.
How in-house does it need to be? The actual physical facilities aren't being shut down; they're just under new ownership and management. And Nippon Steel is located in Japan, which is such a dependable ally of the US that I'm politely trying not to use the phrase "vassal state." Also in the US, we've got Steel Dynamics (producing 75% as much as US Steel), Cleveland-Cliffs (approximately tied with US Steel), and Nucor…
US Steel was a major contributor of steel for the WWII military machine. Honest question: if WW3 were to start, would we be able to appropriate Nippon-owned USS factories for wartime use?
WW3 will be over before we will be able to get Japan on the phone to ask.
Re: US Steel, once the largest corporation, agrees to sell to Nippon Steel
#195They didn’t inform the Union about it nor get its approval. I highly doubt the government will allow this deal to go through.
Are you a lawyer? merger Arbitrage
Re: US Steel, once the largest corporation, agrees to sell to Nippon Steel
#196Earlier quoted context omitted.
> He kinda left the part out. It's irrelevant because the workers won't see a penny of any of it. You kinda left that part out.
Why would that matter to the workers? They'll still get the same exorbitant salary that they negotiated. They could have invested in their employer just like anyone else.
What is the amount of exorbitant salary?
Re: US Steel, once the largest corporation, agrees to sell to Nippon Steel
#197Didn't the US government stop this exact same thing from happening 20 years ago over national security concerns?
an easy response is "Our government no longer believes steel is critical to our national security" Cant find mention of US steel being sold, perhaps this? > In 1984, the federal government prevented U.S. Steel from acquiring National Steel, and political pressure from the United States Congress, as well as the United Steelworkers (USW), forced the company to abandon plans to import British Steel Corporation slabs htt…
I was thinking shortly after 9/11, when US Steel was essentially going bankrupt and we bailed them out by propping up prices with tariffs -- https://en.wikipedia.org/wiki/2002_United_States_steel_tarif...
Re: US Steel, once the largest corporation, agrees to sell to Nippon Steel
#198Earlier quoted context omitted.
At the same time some industries and their major businesses are strategically important enough to warrant government support.
This has been covered extensively elsewhere, even in 101 level macroecon courses. Literally the worst method of protecting “strategic” supplies is to subsidize the industry producing them.
Support means more than just subsidies.
Re: US Steel, once the largest corporation, agrees to sell to Nippon Steel
#199For a fascinating read about Nucor, the competitor that surpassed US Steel, I'd recommend Richard Preston's American Steel.
tl;dr: US didn't update to "modern" induction furnaces until 2020, decades after most of global foundries did so. Failure to innovate == failure.
Re: US Steel, once the largest corporation, agrees to sell to Nippon Steel
#200Earlier quoted context omitted.
Of what value is a union in China? I have seen some of the most deplorable safety tandards that don't even dream of OSHA-tier compliance.
The value of a union in China is profit for the owner of the company and control of worker organization. Going outside the ACFTU worker organization is illegal and punishable.
Ahh so still a holdover from the Soviet system, in a way?