U.S. Invokes “Golden Share Authority” over U.S. Steel: WSJ

Washington, Sept. 19 (Jiji Press)–The U.S. government has invoked “golden share authority” to block United States Steel Corp. from shutting down a plant in Illinois, The Wall Street Journal reported Friday. It is the first time that the exercise of the authority of the so-called golden share has been confirmed. U.S. Steel issued the golden share to the administration of U.S. President Donald Trump under a national security agreement after the company was acquired by Japan’s Nippon Steel Corp. in June. The special share, while carrying no voting rights, grants the president veto power over important management decisions. Under the rules, U.S. Steel, for example, cannot move production or jobs overseas, or close plants for certain period without presidential approval. Concerns have been raised that Trump could intervene in the management of the Pittsburgh, Pennsylvania-based company. According to the WSJ report, U.S. Steel had notified workers at its plant in Granite City, Illinois, of a plan to halt its operations in November as part of broader efforts to streamline the company’s production system, also involving other factories. U.S. Steel planned to keep about 800 employees on its payroll through 2027, having them do tasks such as maintaining plant facilities. However, U.S. Commerce Secretary Howard Lutnick told U.S. Steel that the government would not approve the shutdown and that the president would exercise the golden share authority, the newspaper said. U.S. Steel accordingly withdrew the plan and decided to keep the Illinois plant running, according to the report. A Nippon Steel official said, “We cannot comment on the report at the moment,” while noting, “We are not in conflict with the U.S. government.” The Illinois plant’s blast furnaces are currently not in operation, and its workers are processing intermediate materials produced at other facilities. This processing work is set to continue, and there is no plan to close the Illinois plant, according to the official. END [Copyright The Jiji Press, Ltd.]