Japan's Nippon Steel pledges to invest $1B in Gary, Indiana pending U.S. Steel acquisition

GARY, Ind. (WLS) -- The city of Gary is putting it's support behind the sale of U.S. Steel to Japan's Nippon Steel, saying the deal could mean a new chapter for the city's revitalization.

The Japanese company pledged Thursday to invest $1 billion in Gary, pending the acquisition of the American steel company.

However, the sale is drawing major opposition.

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"For the city, the partnership would mean so much," Gary Mayor Eddie Melton said.

The glory of the past joined the promise of the future Thursday as Gary, Indiana's mayor and Japan's Nippon Steel made their case for why the purchase of U.S. Steel would be a good thing for the economic struggling Northwest Indiana town.

"Michael Jackson might be the most famous resident in Gary, but the men and women of Gary works will build the future of the region," Nippon Steel Vice Chairman Takahiri Mori said.

Nippon Steel is currently in talks to buy U.S. Steel for $14.9 billion.

During an afternoon news conference, the two leaders said it the sale would be a win-win for everyone involved. Nippon has been operating in the United States for over 50 years.

"Gary has had its fair share of impact of the downturn of the steel industry over the last several decades," Melton said. "As the 22nd mayor of Gary, I wanted to show my support for this effort."

But some critics aren't so sure.

While supporters suggest that the acquisition reflects the Japanese company's investment would represent a sizeable commitment to the Midwest region and the American steel industry, some remain concerned any deal could create serious national security issues for the United States.

President Joe Biden and President-elect Donald Trump have both said they would block the deal.

The committee on foreign investment in the United States calls the proposes agreement "problematic."

In a statement this week, the United Steelworkers Union reiterated its opposition to the sale, saying " The proposed sale is bad for workers, our communities and the domestic industry - as well as our national security, critical infrastructure and domestic supply chains. We must continue to resist it."

The union has concern Nippon will transfer production and jobs outside of the U.S., something the company says it won't do. There's also concern the move could negatively impact U.S. Steel's decisions when it comes to trade.

"There will be no job loss or plant closures because of this deal," Mori said. "If anything, we will need more steel workers to meet our vision for the future. We are not transferring jobs or production overseas."

U.S. Steel, once an iconic American brand, has struggled to adapt to a changing global landscape around steel production.

Supporters of the merger argue Nippon provides critical funding to keep plants running and preserve thousands of union jobs.

Japan remains one of the United States' closest allies.

The ongoing review by the committee on foreign investment is expected to be completed by year's end.