It’s possible that I shall make an ass of myself. But in that case one can always get out of it with a little dialectic. I have, of course, so worded my proposition as to be right either way (K.Marx, Letter to F.Engels on the Indian Mutiny)
Nippon Steel delays closing of acquisition of U.S. Steel until late this year after DOJ request
Nippon Steel Corporation’s logo is displayed on a sign outside its headquarters in Tokyo on Nov. 26, 2021. Nippon Steel said Friday, May 3, 2024, it has postponed the expected closing of its $14.1 billion takeover of U.S.STEEL
By Yuri Kageyama - Associated Press - Friday, May 3, 2024
TOKYO — Nippon Steel said Friday it has postponed the expected closing of its $14.1 billion takeover of U.S. Steel by three months after the U.S. Department of Justice requested more documentation related to the deal.
Tokyo-based Nippon Steel Corp. said the deal, already approved by U.S. Steel‘s shareholders, is still expected to go through.
“Nippon Steel will continue to fully cooperate with the examination of the relevant authorities,” it said in a statement.
The sale has drawn opposition from President Joe Biden’s administration on economic and national security grounds, and from former President Donald Trump, the likely Republican presidential candidate in November’s election.
The new timing could push the closing beyond the election, but Nippon Steel denied the delay was related to that.
Initially the deal was supposed to have closed by September. Now it will close by December, meaning it could still close as early as September, according to a company spokesperson, who requested the anonymity customary at Japanese companies.
More than 98% of the Pittsburgh-based U.S. Steel Corp. shares voted at a special investor meeting in April approved the takeover. Nippon Steel has said it has prepared adequate financing to go through with the deal.
First announced in December last year, the merger of U.S. Steel into Nippon Steel has raised concerns about what that might mean for unionized workers, supply chains and U.S. national security.
The United Steelworkers union has opposed the acquisition.
Japanese Prime Minister Fumio Kishida met Biden last month. But there was no indication the topic came up in the summit.
When Biden visited the Pittsburgh headquarters of United Steelworkers recently, he reiterated his opposition to the Nippon Steel purchase, stressing U.S. Steel “has been an iconic American company for more than a century and it should remain totally American.”
The U.S. steel industry has declined over the decades as global steel production came to be dominated initially by Japan, and more recently by China. Under the deal, U.S. Steel will keep its name and its headquarters in Pittsburgh, where it was founded in 1901. ___
Yuri Kageyama is on X: https://twitter.com/yurikageyama
Thursday, April 25, 2024
Unions prepare to fight as Tata drops Port Talbot bombshell
Ruth Mosalski Thu, 25 April 2024
Workers at Tata in Port Talbot are to strike after the company ended negotiations over changes to the business which will result in 2,800 direct job losses. Negotiations between unions and the Indian steel giant have today ended at a meeting in London, formally closing any chance of an alternative plan put forward by unions being adopted.
The company will end blast furnace steel production at the Port Talbot plant and will build a £1.25bn electric arc furnace, recycling scrap steel. The UK Government has contributed £500,000 grant towards the plan saying it was the only way to secure any jobs.
The company has confirmed it will close blast furnace five in June and blast furnace four in September. Tata says that its plan will be the largest investment in the country’s steel industry in decades and secure the future of UK steelmaking, protecting the "majority" of jobs and reduce the UK's carbon emissions. But they say it is not viable.
"However, the unions’ own analysis shows their proposal would cost the company at least an additional £1.6bn when it is already losing £1million a day. Their plans are also high risk and would jeopardise the transition to green steel making,"
A ballot of Unite members, said to total 1,500 across Port Talbot and Llanwern, has already taken place with industrial action being one option. Now, as talks with the company have broken down, the union has said strikes will be announced soon.
A ballot of Community members, the biggest union of workers at the site, is ongoing with a result expected on May 9. The GMB is also consulting its members. No strike action is expected before all the members in all unions have voted.
Community's national Officer for Steel Alun Davies said: "This is an incredibly disappointing day for Tata steelworkers who have been betrayed by a company which owes them so much. It is disgraceful that Tata Steel have chosen to pursue a discredited, bargain basement deal over a viable plan for decarbonisation which would protect jobs and preserve the country's primary steelmaking capacity.
"I know that many of our members will be feeling dejected and anxious today, so it's vital we stick together to look after one another in these uncertain times. It's also vital that we take a stand together and send a message to Tata that we will not go quietly into the night. As someone who has had the privilege of working at Port Talbot and Llanwern, I know first-hand how steel is part of our lifeblood here in south Wales. If the company think that we'll let them trample over our industry and our communities now, they really don't know us at all."
A voluntary redundancy progress will start on May 15. Tata says it expects to place equipment orders for the electric arc furnace by September 2024 and based on current permitting timelines, begin construction on the project by August 2025. It is working with the National Grid to have the power infrastructure in place to commission the electric arc furnace on schedule by end-2027.
Unions have put forward an alternative plan to the one the company is pursuing but the Indian steel giant has said it is unviable. The UK Government has put money into Tata's scheme, saying it is the only way to secure any jobs at the site.
Community General Secretary Roy Rickhuss said: "We do not accept the company's assertion our plan was too expensive - in fact, it would have returned the company to profits, and the additional capital expenditure needed to make it a reality could have been funded by an additional £450m from the government - a drop in the water compared to what other European countries are investing in their domestic steel industries. For the latest politics news in Wales sign up to our newsletter here.
Unite has described Tata’s poverty pleading over its UK operations and its claim that alternative options for Port Talbot are not feasible as a sham.
Unite general secretary Sharon Graham said: “Tata is an immensely profitable company using our outgoing government’s inadequacies to make easy money and boost its other operations at the expense of UK jobs and the national interest.
“Why else would it be rejecting the promise of £3 billion for UK steel investment from an incoming Labour government and turning its back on a location ideally placed to reap the rewards of a steel market projected to grow tenfold?
“Our current government has utterly failed to stand up to Tata and demand better for Port Talbot and Llanwern’s steel communities and the country. Tata’s workers, with Unite using every power at its disposal, will not so easily be defeated. It's plans will be answered with industrial action."
Following a meeting with the UK Steel Committee, Tata Steel’s CEO and managing director, Mr. TV Narendran, said: "Having looked carefully at all the options over the past seven months in consultation with union representatives, we have decided to proceed with our proposed restructuring and transition. This is the most viable proposal, in contrast to the unions’ unaffordable plan which has high inherent operational and safety risk.
"Our proposal secures a long-term future for the business and preserves the majority of jobs in the UK. We will continue to work with the trade unions over the following 2 weeks to agree a memorandum of understanding on the future of the UK business and the impact on our people. Tata Steel is committed to creating a low-CO2 steel business at the heart of a green industrial ecosystem in Wales and the wider UK to safeguard steel supplies and create economic opportunities for generations to come."
Jo Stevens, Shadow Welsh Secretary, said the news consultation had ended is a "gut punch". "This is a total gut punch for people in Port Talbot, and the potential economic consequences will reverberate across south Wales for years."
First Minister Vaughan Gething and Welsh economy minister Jeremy Miles have said: "Quality steel, made in Wales, is the economic bedrock for many communities across Wales and is vital for the economy and security of the UK.
"We have consistently argued that there is a better deal for the industry and Tata workers that could and should be struck - securing a longer, fairer transition towards the greener production of steel in Wales. The Welsh Government will continue to make the case for that fairer transition and do all we can to support the skilled and loyal workforce and those in the supply chain. We will be reaffirming this commitment this afternoon to the transition board."
Welsh secretary David TC Davies said any strike action was a matter between unions and the company. "I think it was inevitable Tata was going to close the blast furnaces because of the losses they are making. We don't want disruption to the supply chain.
"People feel very strongly about this and 2,800 people face losing their jobs so I understand why they are angry and upset however I don't want to get into taking sides."
Tata Steel UK’s CEO, Rajesh Nair, said: "We have spent the last seven months openly and transparently sharing detailed business information, asset condition, maintenance plans and market forecasts with our trade union colleagues and advisers. While we have agreed to keep the Hot Strip Mill running through the transition, the unions’ plan presents significant financial, operational and safety challenges, and delays the transition to green steel by two years. We have concluded that it is not feasible to accept their plan, and it is not affordable.
"This is a difficult period of change for our people, and we will do our upmost to support them. Tata Steel has always been a responsible, long-term and patient investor in its UK business, and we are committing significant
Unions criticise Tata after plan to save steel jobs is rejected
25 Apr 2024
Port Talbot steelworks. Photo Ben Birchall/PA Wire
Unions say their alternative plan to avoid thousands of job losses at Tata has been rejected by the steel company.
Community criticised the decision not to accept the unions’ “credible alternative” to the company’s “bad deal for steel”.
Unions met the company in London on Thursday with another plea not to press ahead with its proposals for its plant in Port Talbot, South Wales, which will lead to the loss of jobs.
Tata Steel has insisted its £1.25 billion plan for a state-of-the-art electric arc furnace in Port Talbot would be the largest investment in the steel industry for decades and would secure the future of UK steelmaking.
“It would protect the majority of jobs, reduce the UK’s carbon emissions by five million tonnes a year and could kickstart a green industrial revolution in South Wales,” said a spokesperson.
‘Incredibly disappointing’
Community general secretary Roy Rickhuss said after the meeting: “It’s incredibly disappointing that Tata have chosen to reject the multi-union plan, which is an ambitious and viable alternative to their destructive bad deal for steel.
“We do not accept the company’s assertion our plan was too expensive – in fact, it would have returned the company to profits, and the additional capital expenditure needed to make it a reality could have been funded by an additional £450m from the government – a drop in the water compared to what other European countries are investing in their domestic steel industries.
“Tata have made their decision, and our members will decide on our collective response.
“Tata made a proposal to negotiate a package with the unions to give us firm assurances on jobs and future investment, and we will consult our members on how we proceed
“We want to make one thing absolutely clear to the company: this isn’t over – not by a long shot. We will never stop fighting for our jobs, our industry, and our proud steel communities.”
Members of Community and the GMB are being balloted on whether to strike over the plans. Unite members have already voted in favour of industrial action.
‘Serious mistake’
Community Assistant General Secretary Alasdair McDiarmid said: “Tata have made a serious mistake in rejecting the credible, expert-backed Multi-Union Plan. Today’s announcement confirms that this was never about what was best for the steel industry, the country or the long-term future of the business: it was always about short-term cost-cutting.
“With their decision today, Tata have missed an historic opportunity to commit to a bold and ambitious future based on transformative strategic investment. We will continue to call on the company to change course, and a clear mandate for industrial action in our ongoing ballot will only strengthen our hand in negotiations.
“Our resolve to oppose Tata’s bad deal for steel – a plan which would be bad for jobs, bad for the environment, bad for national security, and devastating for our communities – has never been stronger.”
Community’s national officer for steel Alun Davies said: “This is an incredibly disappointing day for Tata steelworkers who have been betrayed by a company which owes them so much.
“It is disgraceful that Tata Steel have chosen to pursue a discredited, bargain basement deal over a viable plan for decarbonisation which would protect jobs and preserve the country’s primary steelmaking capacity.
“I know that many of our members will be feeling dejected and anxious today, so it’s vital we stick together to look after one another in these uncertain times.
“It’s also vital that we take a stand together and send a message to Tata that we will not go quietly into the night.
“As someone who has had the privilege of working at Port Talbot and Llanwern, I know first-hand how steel is part of our lifeblood here in South Wales. If the company think that we’ll let them trample over our industry and our communities now, they really don’t know us at all.”
‘Gut punch’
Jo Stevens, shadow Welsh secretary, said: “This is a total gut punch for people in Port Talbot, and the potential economic consequences will reverberate across South Wales for years.
“The Conservative Welsh Secretary has said no one will be left behind if they lose their job. I will be holding him to account on that every step of the way.
“A UK Labour government will invest in our steel industry to make sure the future of UK steel is fuelled by the skills, talent and ambition of Welsh steelworkers.”
The GMB said the meeting was “an unwelcome but not unexpected slap in the face.”
The GMB said one of the blast furnaces at Port Talbot will close by the end of June, and a second in September.
“Discussions will continue on future business commitments on volume and people, including the redundancy package,” said a spokesman.
Jonathan Reynolds, shadow business secretary, said: “It is devastating news Tata Steel are pressing ahead with the Government’s plans to close both blast furnaces in Port Talbot triggering thousands of job losses.
“With other options on the table, and with an uncertain future, Labour urges Tata not make any irreversible decisions about the site.
“Labour has long called for the Government to step in to protect jobs and maintain vital primary steel capabilities in South Wales.
“It’s clear the Government has no plan for steel, for an effective industrial strategy or for our economy.”
Saddened
Paul Davies MS, Chair of the Senedd’s Economy, Trade & Rural Affairs Committee said:“We are deeply saddened to hear Tata has concluded discussions with the steel unions and intends to proceed with its proposals to close both blast furnaces. The whole Senedd has been clear that keeping a blast furnace in Port Talbot during the transition to an electric arc furnace is the right thing to do”.
“This decision will have major implications for workers and their communities. It is vital that they are supported through this massive change”.
“We are also disappointed to see Tata using redundancy packages as a bargaining chip in its industrial relations – all workers laid off should be entitled to the enhanced redundancy package already offered – with no additional conditions attached”.
“The UK and Welsh governments must act quickly to support those that will be made redundant to progress into new, good quality employment and to make sure the strong talent pool we have currently working at the steelworks is not lost to south Wales.”
Plaid Cymru spokesperson for the Economy and Member of the Senedd for South Wales West, Luke Fletcher MS said: “It is deeply disheartening that Tata Steel has opted to dismiss the unions’ proposals – the fallout will be utterly devastating.
“The impact on Port Talbot, surrounding communities and the many businesses throughout Wales that depend on the workforce in Port Talbot will be catastrophic. Months of consultation should have led to a better outcome for workers.
“While Tata may have made their decision, our determination to advocate for the well-being of workers, communities and the future of the industry remains steadfast. We must now see a plan and decisive action from the UK and Welsh Governments who must explore every avenue and use every power at their disposal to safeguard Welsh steel.”
Fifth Tata Steel / Port Talbot Transition Board Statement
The Tata Steel / Port Talbot Transition Board met for the fifth time on 25 April 2024.
The Tata Steel / Port Talbot Transition Board met for the fifth time on 25 April 2024.
The Board received an update from Tata Steel UK on their decarbonisation project.
A Local Economic Action Plan was presented to the Transition Board. The Board endorsed the Plan as a broad road map whilst also recognising the outstanding issues need to be addressed and discussed prioritisation of the proposed interventions. The Board agreed that supporting affected employees to find new well-paid jobs will be its first priority. The Board will also prioritise supporting businesses affected in the supply chain. The Board also recognised the importance of longer-term regeneration of the region. It was agreed that this plan, overseen by Neath Port Talbot Council, will be used as a basis for investment, subject to business cases being presented to the Board at subsequent meetings.
Rt Hon David TC Davies, Secretary of State for Wales chaired the Transition Board meeting. Deputy Chair, Jeremy Miles MS, Cabinet Secretary for Economy, Energy and Welsh Language was in attendance. Felicity Buchan MP, Parliamentary Under Secretary of State in the Department for Levelling Up, Housing and Communities attended in the place of the other Deputy Chair, Rt Hon Michael Gove MP, Secretary of State for Levelling Up. Also, in attendance included Alan Mak MP, Parliamentary Under Secretary of State jointly in the Department for Business and Trade and the Cabinet Office; Henrik Adam, Chair of Tata Steel UK; Rajesh Nair, Chief Executive Officer of Tata Steel UK; Cllr Steve Hunt, Leader of Neath Port Talbot Council; Chief Executive Officer for Neath Port Talbot Council Karen Jones; Stephen Kinnock, MP for Aberavon; David Rees, MS for Aberavon; Tom Giffard MS for the region of South Wales; Luke Fletcher MS for South Wales West. The Board was attended by its independent members, Anne Jessopp CBE and Sarah Williams-Gardner. Representatives from the trade unions also attended: Rob Edwards, Regional Secretary for Community Union; Alun Davies, National Officer for Steel & Metals for Community Union; Tom Hoyles, Politics, Press and Research for GMB Wales & South West and Jason Bartlett, Regional Officer of Unite Wales.
-ends-
NOTES TO EDITORS
Tata Steel announced proposals in September to invest £1.25 billion, including a UK Government grant worth up to £500 million, to enable greener steel production at Port Talbot. A Transition Board to support the people, businesses and communities affected by the proposed transition to low-CO₂ steelmaking, was established in October 2023.
The Transition Board will have access to up to £100 million to invest in skills and regeneration programmes for the local area. It will focus on:
Immediate support for the people, businesses and communities directly affected by the proposed transition to low-CO₂ steelmaking at Port Talbot; and
A plan for local regeneration and economic growth for the next decade.
The Transition Board does not oversee the proposed £1.25bn investment in low-CO₂ steelmaking at Tata Steel UK. This is for the company to oversee with the Department for Business and Trade, UK Government.
Wednesday, April 24, 2024
Biden picks up another big union endorsement, this one from building trades workers
President Joe Biden talks with NABTU President Sean McGarvey after speaking to the North America’s Building Trade Union National Legislative Conference, Wednesday, April 24, 2024, in Washington. (AP Photo/Evan Vucci) President Joe Biden speaks to the North America’s Building Trade Union National Legislative Conference, Wednesday, April 24, 2024, in Washington. (AP Photo/Evan Vucci)
SINGING SOLIDARITY FOREVER President Joe Biden arrives to speak to the North America’s Building Trade Union National Legislative Conference, Wednesday, April 24, 2024, in Washington. (AP Photo/Evan Vucci)
WASHINGTON (AP) — President Joe Biden picked up the endorsement of North America’s Building Trades Unions at a Wednesday event where the president and his allies set out to dismantle Republican Donald Trump’s reputation as a successful real estate developer.
“Donald Trump is incapable of running anything,” said Sean McGarvey, the organization’s president. “God help us if he gets anywhere near the White House in the future.”
The event, held in a Washington hotel ballroom with a boisterous crowd of union members, was another salvo in the battle for votes from blue collar workers. Trump has tried to chip away at Democrats’ traditional advantage with organized labor, while Biden has been adding to his roster of endorsements and trying to fend off his predecessor’s comeback bid.
Biden said unions would help him make Trump a “loser again,” and he mocked Trump’s inability to pass infrastructure legislation when he was president, saying “he never built a damn thing.”
The Democratic president repeatedly torched his likely Republican opponent as a callous businessman who turned firing people into entertainment as part of his long-running reality show “The Apprentice.”
“He looks down on us. I’m not joking. Think about it,” Biden said. “Think about the guys you grew up with that you’d like to get in the corner and just give him a straight left. I’m not suggesting you hit the president. But we all know those guys growing up.”
Biden recently campaigned in his childhood hometown of Scranton, Pennsylvania, and he’s increasingly used economic arguments to portray Trump as out of touch with workers’ concerns.
In this election, Biden said, “it’s either Scranton values or Mar-a-Lago values.”
A Trump campaign spokesman did not immediately respond to a request for comment. But Trump has also sought support from organized labor, including meeting with the Teamsters earlier this year.
“Usually a Republican wouldn’t get that endorsement,” Trump said. “But in my case it’s different because I’ve employed thousands of Teamsters and I thought we should come over and pay our respects.”
TRUE TRUMP FACT: TEAMSTERS WERE REGULAR ENDORSERS OF REPULICAN POTUS CANDIDATES INCLUDING RICHRD NIXON
Trump’s popularity with white working class voters has been a challenge for Democrats who puzzle over his appeal.
McGarvey promised “an unprecedented field program in key battleground states” to help defeat Trump this year.
Friday, April 19, 2024
China Calls Accusations “Untenable” in Response to US Shipbuilding Inquiry
China responded to the U.S. allegations over its shipbuilding practices (CSSC file photo)
Chinese officials and the state-run media continued the strong response denouncing the U.S.’s announcement of a trade investigation into the shipbuilding sector and efforts to triple the tariffs on steel. Chinese media writes the U.S. administration is using an “old playbook of unilateralism and protectionism,” saying it will fail to reshore manufacturing and result in a more expensive supply chain.
China’s Commerce Ministry issued a series of statements responding to the U.S. announcements and said regarding the steel tariffs that, “China has urged the U.S. to confront its internal challenges, while also demanding the immediate removal of imposed tariffs.” They responded by accusing the United States of abusing the Section 301 tariff review while saying the World Trade Organization has ruled the U.S. measures violate global trade rules.
Addressing the application for the review of the maritime, logistics, and shipbuilding industries filed by five U.S. unions in March 2024 with the U.S. Trade Representative they asserted it “lacks factual basis and goes against economic common sense.” They are citing China’s efforts since the 1980s to build the shipbuilding industry saying that their success is the result of enterprises’ technological innovation and active participation in market competition.
“Multiple U.S. research reports show that the U.S. shipbuilding industry has lost its competitive advantage many years ago due to over-protection,” the Ministry of Commerce spokesperson said. “The United States provides hundreds of billions of dollars in discriminatory subsidies to its own industries, but accuses China of adopting so-called ‘non-market practices’.”
China is calling for the United States to “return to the rules-based multilateral trading system,” while also referencing the “domestic political needs” ahead of the upcoming U.S. presidential elections. Media reports in China are saying supporting labor unions is critical in a U.S. election year.
They are saying the U.S.’s actions would have a “minimal impact on Chinese shipyards.” They said there has never been competition between the U.S. and Chinese shipbuilders, noting that for 14 consecutive years, China has completed the greatest number of ships worldwide. Furthermore, they highlight that Chinese shipbuilders now account for 50 percent of the yearly global orders.
The U.S. Trade Representative is set to schedule hearings and solicit comments promising a thorough review of the filing made by the U.S. unions. China said it would “pay close attention to the progress of the investigation and will take all necessary measures to resolutely defend its rights and interests.”
US to Investigate China's Shipbuilding as Biden Calls for New Steel Tariffs
China and CSSC have emerged as the world's leading shipbuilders (CSSC)
President Joe Biden and the U.S. Trade Representative confirmed today that they are initiating an investigation into China’s shipbuilding practices. News of the investigation comes as President Biden and the White House will tell steelworkers that they are also calling for a tripling of tariffs on Chinese steel and aluminum. He is also promising to block efforts by China and others to circumvent U.S. restrictions by importing products through Mexico.
The White House said the administration recognizes the growing concerns that unfair Chinese trade practices, including flooding the market with below-market-cost steel, are distorting the global shipbuilding market and eroding competition. While highlighting that the U.S. trade deficit with China is the lowest it has been in a decade, the administration is also accusing China of unfair competition saying China is undercutting U.S. products with artificially lower-priced alternatives. They cite the critical nature of steel in U.S. commercial and naval shipbuilding calling steel the backbone of the American economy.
The concerns over China subsidies and state control of the shipbuilding industry were outlined in a petition to the U.S. Trade Representative from five labor unions. Filed in March, the unions formally requested an investigation into Chinese acts, policies, and practices in the maritime, logistics, and shipbuilding sectors.
“The petition presents serious and concerning allegations of [China’s] longstanding efforts to dominate the maritime, logistics, and shipbuilding sectors, cataloging the PRC’s use of unfair, non-market policies and practices to achieve those goals,” said U.S. Trade Representative Ambassador Katherine Tai. The announcement marks the start of a process of comments and hearings into China’s shipbuilding programs and could see tariffs imposed on Chinese-built ships calling at U.S. ports.
Administration officials are saying that China accounts for more than half the world’s steel exports. They said the Chinese have created overcapacity with non-market investments in the steel and aluminum industries.
“The steel and aluminum industries face a significant challenge from Chinese exports which are among the most emissions-intensive products in the world,” the White House wrote in its briefing document. It accuses China of “distorting the global shipbuilding market and eroding competition.”
China’s commerce ministry responded immediately to the accusations saying the initiative was “full of false accusations, misinterpreting normal trade and investment activities.” They repeated the Chinese position that the U.S. administration is playing the “China card” for its political aspirations.
The White House cites over 30 anti-dumping and countervailing duties on steel-related products already imposed by the U.S. Department of Commerce. President Biden said he was not seeking a trade war, but said steps would be taken against countries and importers that flood the market with cheap products.
President Biden said they would also be working with Mexico to jointly prevent China and other countries from evasion of tariffs on steel and aluminum by importing products into the United States from Mexico.
US Steel and Japanese buyer Nippon Steel said the Pittsburgh-based firm will remain an “iconic American company” even after a planned $14.9 billion takeover, echoing President Joe Biden’s promise to local steelworkers.
The two steel giants responded hours after Biden on Wednesday pledged that US Steel would remain a “totally American company,” repeating his opposition to the deal.
“And that’s going to happen, I promise you,” Biden told the supportive crowd during an event in Pittsburgh.
US Steel Corp has agreed to be bought by Nippon Steel for $14.9 billion, but the deal has been described as being on life support since the Democratic president announced his opposition last month.
“The partnership between US Steel and Nippon Steel is the right combination to ensure that US Steel remains an iconic American company for generations to come,” the steelmakers said in a joint statement.
“Its iconic name will be unchanged, and its products will remain mined, melted and made in America,” the statement said, adding that jobs and plants would be protected.
The partnership would also strengthen the US steel industry’s resilience against threats from China and support the “crucial” US-Japan alliance, the companies said.
United States Steel shares closed down 2.9% at $39.13 on Wednesday. Nippon Steel shares were trading up 1.05% at 3,468 yen on Thursday morning in Tokyo.
Biden was in Pittsburgh ahead of November’s presidential election, and he used a visit to the headquarters of the United Steelworkers union to push for higher tariffs on Chinese metal imports and new investigations into their trade practices.
A senior administration official briefing reporters ahead of that announcement declined to say whether Biden would use the levers of government to block the deal from going through.
“Nothing new to add,” said the official, who declined to be named.
“Let’s keep US Steel in America,” a woman among the steelworkers shouted to Biden during a meet-and-greet.
“Guaranteed,” Biden replied.
(By Steve Holland, Costas Pitas, Mariko Katsumura, Susan Heavey and Trevor Hunnicutt; Editing by Caitlin Webber, Chang-Ran Kim and Tom Hogue)
Thursday, April 18, 2024
China accuses US of hypocrisy over Biden’s ‘xenophobic’ claims
US President Joe Biden delivers remarks at United Steelworkers headquarters in Pittsburgh, Pennsylvania on April 17. — Reuters
Beijing on Thursday accused the United States of hypocrisy in response to accusations by President Joe Biden that China is “xenophobic” and “cheating” on trade.
“I would like to ask him: are you talking about China or the US itself?” foreign ministry spokesman Lin Jian said when asked about the comments.
In a speech on Wednesday to union members, Biden called for a hike in steel tariffs on China, accusing it of cheating as he courted blue-collar voters on an election campaign trip to the battleground state of Pennsylvania.
“They’re not competing, they’re cheating. They’re cheating and we’ve seen the damage here in America,” the 81-year-old Biden said to cheers at the headquarters of the United Steelworkers union in Pittsburgh.
The Democrat said Chinese steel companies “don’t need to worry about making a profit because the Chinese government is subsidising them so heavily”.
Biden said he had called for the US Trade Representative to triple the tariff rates for Chinese steel and aluminium if Beijing was confirmed to be using anti-competitive practices.
“They’re xenophobic,” he added. “They’ve got real problems. I’m not looking for a fight with China, I’m looking for competition — but fair competition.”
Beijing and Washington have clashed in recent years on flashpoint issues from technology and trade to human rights as well as over the self-ruled island of Taiwan and the disputed South China Sea.
Relations have stabilised somewhat since Presidents Biden and Xi Jinping met in San Francisco in November for talks that both sides described as a qualified success.
The two held a follow-up telephone call this month, where they clashed over US trade restrictions on technology and on Taiwan, which Beijing claims.
But they also agreed that two high-level US officials would soon travel to China — US Treasury Secretary Janet Yellen visited last week, with top diplomat Antony Blinken due in Beijing soon.
The US also this week announced a probe into China’s trade practices in the shipbuilding, maritime and logistics sectors.
China’s commerce ministry hit back, saying the probe was “full of false accusations, misinterpreting normal trade and investment activities as harming US national security and corporate interests, and blaming China for its own industrial problems”.
US to Investigate China's Shipbuilding as Biden Calls for New Steel Tariffs
China and CSSC have emerged as the world's leading shipbuilders (CSSC)
President Joe Biden and the U.S. Trade Representative confirmed today that they are initiating an investigation into China’s shipbuilding practices. News of the investigation comes as President Biden and the White House will tell steelworkers that they are also calling for a tripling of tariffs on Chinese steel and aluminum. He is also promising to block efforts by China and others to circumvent U.S. restrictions by importing products through Mexico.
The White House said the administration recognizes the growing concerns that unfair Chinese trade practices, including flooding the market with below-market-cost steel, are distorting the global shipbuilding market and eroding competition. While highlighting that the U.S. trade deficit with China is the lowest it has been in a decade, the administration is also accusing China of unfair competition saying China is undercutting U.S. products with artificially lower-priced alternatives. They cite the critical nature of steel in U.S. commercial and naval shipbuilding calling steel the backbone of the American economy.
The concerns over China subsidies and state control of the shipbuilding industry were outlined in a petition to the U.S. Trade Representative from five labor unions. Filed in March, the unions formally requested an investigation into Chinese acts, policies, and practices in the maritime, logistics, and shipbuilding sectors.
“The petition presents serious and concerning allegations of [China’s] longstanding efforts to dominate the maritime, logistics, and shipbuilding sectors, cataloging the PRC’s use of unfair, non-market policies and practices to achieve those goals,” said U.S. Trade Representative Ambassador Katherine Tai. The announcement marks the start of a process of comments and hearings into China’s shipbuilding programs and could see tariffs imposed on Chinese-built ships calling at U.S. ports.
Administration officials are saying that China accounts for more than half the world’s steel exports. They said the Chinese have created overcapacity with non-market investments in the steel and aluminum industries.
“The steel and aluminum industries face a significant challenge from Chinese exports which are among the most emissions-intensive products in the world,” the White House wrote in its briefing document. It accuses China of “distorting the global shipbuilding market and eroding competition.”
China’s commerce ministry responded immediately to the accusations saying the initiative was “full of false accusations, misinterpreting normal trade and investment activities.” They repeated the Chinese position that the U.S. administration is playing the “China card” for its political aspirations.
The White House cites over 30 anti-dumping and countervailing duties on steel-related products already imposed by the U.S. Department of Commerce. President Biden said he was not seeking a trade war, but said steps would be taken against countries and importers that flood the market with cheap products.
President Biden said they would also be working with Mexico to jointly prevent China and other countries from evasion of tariffs on steel and aluminum by importing products into the United States from Mexico.
Monday, April 15, 2024
UK's Shipyards Look for New Ways to Plug Workforce Gaps
Steel-cutting for the Type 31 frigate at Babcock's Rosyth shipyard (Babcock)
The U.S. has a well-publicized challenge in finding and retaining enough qualified shipyard workers, but it isn't the only nation with a shortage of skilled labor. The UK's top defense shipbuilders are trying new ways to solve persistent gaps between the workforce they have and the workforce they need, like introducing top-notch automation and creating new entry-level opportunities.
At BAE Systems' yard on the Clyde, there are currently about 200 vacancies, and managers need to staff up to support a new eight-ship frigate contract for the Royal Navy. In years past, UK yards could raid the European labor market for qualified welders when needed, managing director Simon Lister told Glasgow Times - but that is no longer an option. BAE is investing in training instead, as well as a brand new highly-automated panel line.
“The availability of steelworkers has been a challenge for all shipbuilders in the UK," Lister said.
BAE has its own shipbuilding academy and a growing apprentice program, which will expand to about 1,000 personnel by next year. The yard and its competitors emphasize that they aren't just looking for welders, but also for people with all kinds of skills, like programming, finance and project management.
Babcock's Rosyth shipyard has found its own way to help resolve persistent manning shortages. It has a robust apprenticeship pipeline, but it has also realized that not every shipyard worker has to be a high-skill employee from the start. Many support tasks can be performed by personnel with a relatively basic skillset. Babcock has started hiring ordinary people who can pick up some of these less-skilled tasks and relieve pressure on the high-skill union workforce, the yard told Defence Connect. The new Production Support Operative (PSO) hiring pipeline selects for people with a good attitude, even if they do not have relevant qualifications, and provides them with enough training to support experienced workers. Down the road, they may have an opportunity to apply for an apprenticeship.
For its part, the UK government has completed a study on shipbuilding skills and is standing up a new working group to advocate for the industry's workforce needs. Public perception is one of the key challenges, the study found: in the UK, it is often viewed as an outdated industry in decline, and prospective employees may not know of recent investments and improvements.
Monday, April 01, 2024
Nippon Steel emphasises its ‘deep roots’ in the US as it pursues US Steel deal
US Steel’s Gary Works in Gary, Indiana, the largest integrated mill in North America. (Archival image in the public domain from the US National Archives and Records Administration).
Nippon Steel intends to pursue its proposed acquisition of US Steel and wants its “deep roots” in the United States to be recognised, its new president said – remarks that come after US President Joe Biden expressed opposition to the deal.
The Japanese firm has agreed to buy US Steel for roughly $15 billion but the deal faces an uphill battle for approval in a US election year.
The White House sees steel as critical to national security and Biden said last month that US Steel should remain domestically owned. His opponent in the November presidential vote, former President Donald Trump, has promised to block the deal if he is re-elected.
It’s not clear if Biden plans to use any US regulatory authorities to scuttle the deal.
“What US politicians are concerned about is jobs and whether US Steel can develop as an iconic US company in the US,” Tadashi Imai told reporters last week before he took on his new role on Monday.
“I am convinced that we’re the most useful partner to help US Steel grow in the United States,” he added.
Imai, 60, became president in a management reshuffle intended to lower the average age of top executives but in a break with tradition, its charismatic former president Eiji Hashimoto has taken on the title of chief executive and will be in charge of shepherding the acquisition.
The proposed deal has drawn strong criticism from some lawmakers and the United Steelworkers (USW) labour union which is worried about potential job losses.
Japan’s largest steelmaker has pledged no job cuts as a result of the deal, to honour all agreements between the union and U.S. Steel as well as to move its own US headquarters to Pittsburgh where US Steel is based.
Imai said he was hopeful that Nippon Steel would come to be seen as a firm with deep roots in the US, noting that it has had a presence there since the 1980s and has 4,000 employees in the country, some of whom are also members of the USW.
“The most important thing and the only thing that we can do is to talk to the USW in good faith,” about investment plans and measures to raise the competitiveness of US Steel, he said.
Imai said that the acquisition would give US Steel access to Nippon Steel’s advanced technologies such as electromagnetic steel sheet, adding that the Japanese firm has some 2,000 steel patents in North America while US steelmakers in general had roughly 200 each.
At home, Imai’s main focus will be decarbonisation, he said, adding that the company will soon need to make investment decisions on whether to invest in new electric furnaces at two sites – the Kyushu Works Yawata site in southern Japan and Setouchi Works Hirohata site in western Japan.
The company must decide on the projects either this financial year or the next one, Imai said.
“It will be a huge investment … but the time for a key decision is approaching on the technical certainty and predictability of the return on investment.”
(Reporting by Yuka Obayashi and Ritsuko Shimizu; Writing by Katya Golubkova; Editing by Edwina Gibbs).
Tuesday, March 26, 2024
Aluminum company says preferred site for new smelter is a region of Kentucky hit hard by job losses
BRUCE SCHREINER Mon, March 25, 2024 Kentucky Gov. Andy Beshear responds to a question during an interview, Dec. 19, 2023, in Frankfort, Ky. An aluminum company has singled out northeastern Kentucky as its preferred site for a new aluminum smelter that would bring about 1,000 permanent jobs to an Appalachian region hard hit by the loss of coal and steel production, Gov. Beshear said Monday, March 25, 2024.
(AP Photo/Timothy D. Easley, File)More
FRANKFORT, Ky. (AP) — An aluminum company has singled out northeastern Kentucky as its preferred site for a new aluminum smelter that would bring about 1,000 permanent jobs to an Appalachian region hard hit by the loss of coal and steel production, Gov. Andy Beshear said Monday.
Plans by Century Aluminum Co. to build a smelter that produces dramatically lower emissions will be supported by $500 million from the U.S. Department of Energy. The project has the potential to become the largest investment on record in eastern Kentucky, Beshear said.
“There’s still a lot of steps that we need to take to make this a reality," the governor said at a news conference. "But this is the first important step.”
The governor is hoping that a state incentives package will help close the deal. He predicted that state lawmakers will provide “the tools that we need” in the closing days of their legislative session.
The company's president and CEO, Jesse Gary, did not attend the news conference but said in a statement that a “myriad of steps" must still be resolved and that multiple locations are still being evaluated, but he pointed to northeastern Kentucky as the preferred location. Issues still pending include development costs for sites under consideration, utility costs, workforce and incentives, he said.
Century Aluminum, headquartered in Chicago, already has a significant presence in the Bluegrass State with two aluminum smelters in western Kentucky.
Gary referred to the announcement Monday as "another step in our continued long-standing relationship with the state, and we look forward to the opportunity to help be a part of growing commerce in eastern Kentucky, an outcome that is very attractive to Century Aluminum.”
Century says it is the largest producer of primary aluminum in the United States and also operates production facilities in Iceland, the Netherlands and Jamaica.
Northeastern Kentucky was hit hard several years ago when a steel mill that had been an economic bedrock for generations shut down. The broader eastern Kentucky region has struggled from the sharp drop in coal jobs over the last decade amid shrinking demand for coal.
The region had its hopes of landing a massive aluminum plant dashed a few years ago. Another aluminum company planned to build a mill near Ashland in northeastern Kentucky but the project — which was pushed by Beshear's predecessor, former Republican Gov. Matt Bevin — never came to fruition as the company struggled to line up sufficient financing.
Now Beshear, who unseated Bevin in 2019, is trying to deliver on what he says would be a game-changing project for the region and continue the state's record-setting pace of economic development growth during the Democrat's tenure. Beshear, seen as a rising star in his party, won reelection to a second term last year in what otherwise has become a Republican-dominated state.
The region's renewed prospect of becoming home to an aluminum smelter offers an “incredible opportunity” for an area that's “been through the ringer,” said Boyd County Judge-Executive Eric Chaney, who was among several area leaders who attended the news conference with Beshear.
“We're going to work hard to help get this over the finish line,” Chaney said later in a phone interview. “This is a great opportunity for northeast Kentucky and the entire state.”
The project would create about 5,500 construction jobs and then about 1,000 permanent union jobs, the governor said. The new smelter would double the size of the current U.S. primary aluminum industry while avoiding an estimated 75% of emissions from a traditional smelter due to its state-of-the-art, energy efficient design and use of carbon-free energy, he said.
The Department of Energy, in a separate news release, said the new plant would be the cleanest and most efficient aluminum smelter in the world.
Aluminum produced by the new plant will support national defense, electric vehicles, semiconductors, building and construction and green energy applications, Beshear said.
While many decisions remain, Beshear pointed to the importance of $500 million in federal support for the project. The funding is provided by DOE’s Industrial Demonstrations Program, and the governor thanked President Joe Biden, Energy Secretary Jennifer Granholm and others.
“While we all recognize that it’s not a done deal and there is more work to come, a $500 million grant, if it is built in this region, is a pretty good place to start,” Beshear said.
Last week, Beshear announced plans by Rye Development to build a $1.3 billion pumped storage hydropower facility on a former coal mine site in Bell County in southeastern Kentucky. The project — also backed by a federal grant — will create about 1,500 construction jobs, 30 operations jobs and enough energy to power nearly 67,000 homes each year
Biden’s Big Bet on Aluminum Matthew Zeitlin Mon, March 25, 2024
Famously energy intensive and dominated by Chinese smelters, aluminum sits at a curious nexus of climate and industrial policy.
The famously lightweight metal is something like the base metal of green industry. It’s used in the frames for solar panels, the control equipment for wind turbines, and in the hardware of electricity distribution. It’s lighter than steel, which makes it appealing to electric car manufacturers, like Tesla, who want to expand the range of their vehicles. Aluminum is often found in the batteries themselves, as well, specifically their enclosures. Overall, aluminum demand is projected to rise by some 40% by the end of the decade.
Like other industrial metals (namely steel), the U.S. aluminum industry has been a poster child of deindustrialization. Employment in the aluminum production industry has fallen from around 100,000 in 2000 to around 60,000 in 2022, with much of the fall happening in the few years after the United States established permanent normal trade relations with China. Earlier this year, the second largest smelter in the country said it would lay off most of its employees.
So, can the Biden administration bring aluminum smelting back to the United States?
The Department of Energy today announced $6 billion of funding for 33 industrial decarbonization projects, including four for aluminum, worth almost $670 million total. That includes up to $500 million for Century Aluminum to build a new primary smelter, which would make it the first new smelter in the United States since the late 1970s.
“Aluminum is a metal that is of incredible strategic importance to the U.S. and the world,” Jane Flegal, the former White House Senior Director for Industrial Emissions, told me. “We used to do a lot of aluminum production. That has declined precipitously.”
Obama, Trump and Biden have tried some combination of tariffs and negotiations to bring order to the global aluminum market — some of the Trump-era tariffs remain in place — but none of them had much success. Traditional climate policy, meanwhile, has focused more on the greenhouse gas emissions that come from transportation and electricity generation.
Heavy industry is a massive source of emissions, comprising about a fifth of the global total. The aluminum industry on its own makes up about 2% of global emissions, of which the smelting is responsible for about 80%, with the lion’s share going to the electricity being used to power the process. This makes smelting especially sensitive to both the price and availability of power. It’s no coincidence that Iceland, with its plentiful and always available hydropower and geothermal resources, is a major aluminum producer.
Many industrial processes themselves also produce emissions, which makes industrial decarbonization not just an adjunct of decarbonizing the electricity sector but rather an area that requires its own technological breakthroughs. For example, to make aluminum out of alumina, a powder that is refined from bauxite, requires consuming a carbon anode, which itself is made from an oil refining byproduct. These are businesses that operate on small margins and require huge capital investments to expand or change production, Flegal told me.
And the new technology necessary to decarbonize them wasn't being developed because “there wasn’t the level of investment in new technological pathways,” Todd Tucker, director of industrial policy and trade at the Roosevelt Institute, told me. “These demonstration projects are the first step of showing viability of new production methods.”
The Department of Energy said the smelter “would double the size of the current U.S. primary aluminum industry while avoiding an estimated 75% of emissions from a traditional smelter.” The DOE noted the preferred site for the smelter would be “Kentucky or Ohio/Mississippi River Basins.” Kentucky’s Governor Andy Beshear said Monday that Century had indicated an interest in the Bluegrass State, and that his office was working to put together a bundle of incentives to make the state more attractive.
The decades of job losses in the aluminum sector have “been devastating for our members and communities we work at,” Emil Ramirez, the USW’s vice president for administration, told me. “We have to give the Biden administration credit for recognizing the need to revitalize this important industry.”
