ST. LOUIS (KMOX) - Japan-based Nippon Steel is suing the U.S. Government over President Joe Biden blocking their purchase of U.S. Steel, calling the move, "political."
The Mayor of Granite City, Illinois doesn’t see it that way.
Granite City Mayor Mike Parkinson tells 'The Chris and Amy Show' on KMOX he can’t see how Biden’s decision can be viewed as political.
"The current president Joe Biden and president-elect Donald Trump are both on the same page with this deal," said Mayor Parkinson. "I don't know where the politics come from when you have the Democratic and Republican sides both saying this is a bad deal for America."
Parkinson says based on what the union has told him, Nippon expressed no plans to keep the Granite City plan operating if they purchased US Steel.
Parkinson tells KMOX they were uncomfortable with the lack of transparency around the future of their steel plant, fearing Nippon’s promises were empty.
"Once they own it, they own it," said Parkinson. "Then you're in long court battles."
Last week, President Biden blocked the deal for U.S. Steel to be purchase by Nippon Steel, saying U.S. companies producing a large amount of steel need to "keep leading the fight on behalf of America’s national interests."
Had the deal gone through, Nippon Steel had promised to invest $2.7 billion in U.S. Steel’s aging blast furnace operations in Gary, Indiana, and Pennsylvania’s Mon Valley, and had said it is best positioned to help the U.S. compete in an industry dominated by the Chinese.
In addition, U.S. Steel has warned that, without Nippon Steel’s cash, it will shift production away from the blast furnaces to cheaper non-union electric arc furnaces and move its headquarters out of Pittsburgh.
The Associated Press has also contributed to the story.