Pennsylvania senators, congressman urge federal committee to block foreign sale of U.S. Steel

Three Democratic U.S. lawmakers from Pennsylvania are calling for a federal committee to block the proposed sale of U.S. Steel to Japan-based Nippon Steel, citing national security concerns.

In a letter Tuesday to U.S. Treasury Secretary Janet Yellen, Sens. Bob Casey and John Fetterman and U.S. Rep. Chris Deluzio said the planned $14.9 billion sale would be “a step backwards in our commitment to supply chain integrity and economic security.”

Yellen chairs the Committee on Foreign Investment in the United States.

The lawmakers urged the committee to block the sale. They expressed concerns about the national security implications of selling to a foreign company Pittsburgh-based U.S. Steel, which manufactures materials for such critical U.S. industries as defense, power and infrastructure.

“Steel is essential to our national security, and we believe that the United States’ marquee steel company should remain under American ownership,” the lawmakers wrote.

They noted that the Committee on Foreign Investment in the United States reviews the national security risks of certain foreign direct investments in the U.S. economy, including mergers, acquisitions or takeovers that could result in foreign control of a U.S. business.

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“We question whether a foreign company that has been found to be dumping steel into the U.S. market at prices below fair market value is the best buyer for U.S. Steel,” the letter continues. “Of further concern, Nippon Steel has facilities in the People’s Republic of China, a foreign adversary of the U.S.”

U.S. Steel and Nippon Steel did not immediately respond to requests for comment on the letter.

Area Republican members of Congress, U.S. Reps. Guy Reschenthaler and Mike Kelly, could not be reached for comment.

Allegheny County Councilman and county Republican Chairman Sam DeMarco said he also wants U.S. Steel to remain in American hands. But he criticized Democratic leaders for failing to offer the company support on past environmental issues.

“I would prefer that U.S. Steel remain an American company in American hands employing American workers,” DeMarco said.

He added, “If this wasn’t so serious, this would be funny in that these Democratic politicians come out of the woodwork to feign concern about jobs when they stood by and watched U.S. Steel being attacked relentlessly by environmentalists and other activist groups.”

Under the proposed sale announced Monday, U.S. Steel would become a subsidiary of Nippon Steel, the world’s fourth-largest steel producer, while retaining its name and headquarters in Western Pennsylvania.

U.S. Steel has said Nippon Steel would honor the Pittsburgh company’s union labor agreements, but United Steelworkers has criticized the deal and said neither steel producer reached out to the union concerning the proposed sale.