Tom Danjczek: Step up and save the U.S. Steel deal

I’ve spent more than five decades fighting for the U.S. steel industry. I started my career as a maintenance turn foreman, eventually working my way up to president of the Steel Manufacturers Association (SMA) before retiring nine years ago. Over the years, I’ve seen it all — the highs, the lows, the near collapses and the remarkable recoveries. But today, I’m deeply concerned by the political games endangering the proposed Nippon/USS acquisition, a deal that is crucial to the steel industry’s future, its workers, its customers and our country.

The Nippon/U.S. Steel deal is not just a win for everyone involved; it’s essential for the future of our industry — essential for the steelworkers, the communities they support, the companies that depend on steel and the entire country. Yet here we are, watching political games threaten to derail it. It’s time for the parties to act like adults and get this deal done. The recent timeline extension is blatant raw politics.

Do we really want to let politics dictate the future of our steel industry? Should politicians be the ones deciding winners and losers? The answer is a resounding “no.” The market needs to be in the driver’s seat. This deal represents a huge, meaningful opportunity to secure jobs, invest in innovation and ensure the U.S. remains globally competitive in steel production.

Now, there are some murmurs about “national security concerns.” I’ve heard it before, and the truth is that these arguments don’t hold water. I’ve been around long enough to know what real national security threats look like, and this isn’t one of them.

Another myth which needs to be dispelled is that Nippon’s motive to acquire U.S. Steel is so they can ship steel in from Japan and close U.S. Steel facilities. Nonsense. Nippon is spending nearly $18 billion to operate U.S. Steel facilities.

I served as a steel industry advisor to the USTR and the U.S. Commerce Department for 16 years. I was actively involved with the SMA in stopping a Chinese state-owned company from building a rebar mill here in the U.S. It was obvious we couldn’t have a non-friendly government owning American steel production, and that decision made sense. But Japan’s Nippon is not China’s Anshan, and they’ve proven themselves to be reliable partners and innovators in the U.S. and global steel industry.

Nippon’s involvement isn’t just a benefit — it’s a game changer. After spending months in Japan during the 1980s, starting up mill equipment with Nippon, I know firsthand that their capabilities in operations, environmental technology and most importantly their ability to transfer that knowledge to American operations are more than enough to revolutionize US Steel. Just look at Wheeling Nippon, 800,000-ton USW-manned galvanizing lines. That’s a success story if I’ve ever seen one.

This deal also brings major benefits to the auto industry, one of our biggest steel customers. Automakers rely on high-quality, competitively priced steel, and Nippon’s involvement will bring an extra layer of competitiveness and reliability. Their technology and doubling the capacity at Big River Steel means more competition, better prices and reliable supply. Why would we say no to that?

Now, I’ve seen both sides of the coin. I’ve been through the painful shutdowns in Bethlehem, Fontana and Steubenville. I know what happens when steel plants close, and it’s not just jobs that are lost; it’s entire communities. And right now, without Nippon’s $1.4 billion investment, the Mon Valley could see closures in as little as three years. Gary could see its production drop from 8 million tons to 5 million tons. But with Nippon’s multi-billion-dollar cash infusion, we could keep these plants running for decades, providing good-paying jobs and supporting the communities that depend on them.

The economic impact of walking away from this deal is dire and personally unacceptable to me. We can’t let political egos get in the way of what’s right for the industry, the workers, and the country.

This deal needs saving, and it needs saving now. Now that the Board of Arbitration has ruled U. S. Steel satisfied the successorship clause with the United Steelworkers (USW), US Steel is allowed to proceed with closing the transaction, and lawmakers should not stand in the way.

I sincerely hope that politicians, union leaders and company executives can find a way to come together, step out of their corners and declare a collective victory. We need leaders who will step up, act like grown-ups and put politics aside to do what’s best for the workers, the communities, the industry and the country. The future prosperity of American steel — and the livelihoods of thousands of workers — depends on it.

Tom Danjczek spent 45 years in the steel industry.