Eyes on Steel — Again (Editorial)

An electric arc furnace at U.S. Steel-owned Big River Steel’s Flex Mill near Osceola. Since the mill opened, it has provided hundreds of jobs and a big boost to the local economy. (SMS group GmbH)

The ramifications on Arkansas of the $14.9 billion planned purchase of U.S. Steel of Pittsburgh by Nippon Steel of Tokyo, announced last month, remain to be seen. But the premium that Nippon Steel is willing to pay for U.S. Steel is a sign that the Japanese company values this iconic American brand and its capabilities.

U.S. Steel had made clear it was open to offers after having rejected a $7.3 billion bid from Cleveland-Cliffs in August.

U.S. Steel, which completed its purchase of Big River Steel in Osceola in 2021, is building a $3 billion plant, Big River 2, in the community and describes the plant as one of the most advanced steel mills in the world.

With Nucor-Yamato and Nucor Steel Arkansas also making their home in Mississippi County, it has become the biggest steel-producing county in the United States.

Although we agree with President Joe Biden that “serious scrutiny” of the planned acquisition is warranted, we’d note that Nippon Steel’s purchase of U.S. Steel would make the combined company one of the top three steel-producing companies in the world, and such production clout could translate into increasing manufacturing clout for the state.