Lorain mill fate uncertain under U.S. Steel-Nippon merger

LORAIN — It is too early to tell what the sale of U.S. Steel to its Japanese counterpart may mean for a vacant mill in Lorain, officials said Wednesday. Nippon Steel completed its acquisition of U.S. Steel on Wednesday, about 18 months after the merger was first announced. Hours after the companies announced the move, Lorain officials hoped it would spell good news for the idled East 28th Street mill. "There's going to be improvements made throughout the nation and hopefully we'll see some investment here in Lorain and potentially a restart in operations," said Rey Carrion, city's safety/service director. U.S. Steel idled its Lorain tubular plant indefinitely in 2020. Prior to the shutdown, the facility produced about 380,000 net tons of pipe, casing and tubing, according to its website. Nippon Steel's announcement promised $11 billion in investments by 2028 and the protection and creation of more than 100,000 jobs in the United States, according to a company news release. Under the agreement, U.S. Steel will retain its name and headquarters in Pittsburgh and become a subsidiary of Tokyo-based Nippon Steel under the $15 billion takeover. Carrion said Lorain's U.S. Steel property is in much better shape than the nearby Republic site, but was unsure what upgrades may need done to the U.S. Steel mill if it were to restart. Republic Steel indefinitely idled its Lorain operations in 2016. Last year city officials cited the Republic property for code violations, sparking conversations between city officials and the company about redeveloping the more than 400-acre plot. Carrion said conversations are ongoing with state and federal lawmakers in the hopes of enticing further investment in the International City — be it at U.S. Steel, Republic, or elsewhere. Lorain County Chamber of Commerce President Anthony Gallo said all he knew of the U.S. Steel takeover was what he read online, and was unsure what it would spell for Lorain or the county. Similarly, county commissioners Dave Moore and Marty Gallagher, both Republicans, were unaware of any plans to rehabilitate the mill or restart operations in Lorain. Messages seeking comment from U.S. Steel and Nippon Steel were not returned by deadline Wednesday. In a statement to The Chronicle-Telegram, U.S. Sen. Jon Husted, R-Upper Arlington, said it was unclear how the partnership between the two companies will take shape in steel-producing towns. "But I hope that the talent and work ethic of Ohioans testifies to how worthwhile investing here has been and can be again," Husted said. Steel plants, under various names or subsidiaries, have operated in Lorain since the 1890s. Contact Carissa Woytach at (440) 329-7245 or cwoytach@chroniclet.com