Skyscrapers. Tanks. Railroads. What do they have in common? All require steel.
For years, most of that steel came from the United States. And most of that came from the United States Steel Corporation, better known as U.S. Steel. But this year, the corporation is set to be purchased by Nippon Steel Corporation—a company from Japan.
U.S. Steel once stood as a symbol of American industry. But other nations now lead the steel industry. The United States lands fourth behind China, India, and Japan.
Steelmaking has existed for thousands of years. This alloy combines iron and carbon to form a strong, inexpensive material. In the Middle Ages, blacksmiths often crafted swords, armor, and tools from steel. During the Industrial Revolution of the 1800s, steel production took off. Advances in furnace technology made steel production on a massive scale possible.
In 1901, several American businessmen established U.S. Steel. J.P. Morgan (whose name you still see on banks) helped merge several other major steel companies. The merger included the Carnegie Steel Company, owned by Andrew Carnegie, one of the richest men in the world. The new company operated in Pittsburgh, Pennsylvania, which became known as “the Steel City.” (Hence the professional football team, the “Pittsburgh Steelers.”)
U.S. Steel quickly dominated the industry. It survived the Great Depression and created much-needed metal for both world wars. The company provided steel for some of America’s iconic structures. The United Nations Building in New York City? That’s U.S. Steel. The San Francisco-Oakland Bay Bridge? Same. Pablo Picasso’s unnamed Chicago sculpture? You guessed it. Some people call U.S. Steel “the company that built America.”
In the past 40 years, America’s steel industry has declined. Mills that supported entire cities now sit abandoned. The famous Bethlehem Steel Mill in Pennsylvania is now a museum.
U.S. Steel CEO David Burritt says the sale of the company that built America to Nippon Steel of Japan will actually benefit the United States. According to Burritt, the deal will ensure “a competitive, domestic steel industry, while strengthening our presence globally.”
David McCall isn’t so sure. As president of United Steelworkers International, he represents one of America’s largest unions. He expresses concerns about what the deal means for American workers. Will they lose opportunities? McCall urges government regulators to “determine if the proposed transaction serves the national security interests of the United States and benefits workers.”
The deal will likely become final in mid-2024. When it does, U.S. Steel will keep its name and its Pittsburgh headquarters—but not its American identity.
Why? When major companies merge, there’s more at stake than money—there’s also worker welfare and valuable history.
