Making the Case To Modernize the U.S. Domestic Steel Industry

After blocking Nippon Steel’s purchase of U.S. Steel, the U.S. government must modernize domestic steel production to become more competitive, says MIE Associate Professor Muhammad Noor E Alam.


This article originally appeared on Northeastern Global News. It was published by Kate Rix. Main photo: A purchase by Nippon Steel would upgrade U.S. Steel’s infrastructure, says Muhammad Noor E Alam, but it wouldn’t fix the gap between American and foreign steel production. AP Photo/Ted Shaffrey

U.S. Steel needs federal investment to stay competitive, Northeastern expert says

If Tokyo-based Nippon Steel’s proposed $14.1 billion purchase of U.S. Steel doesn’t go through, the U.S. government should support the domestic steel industry the way it supports the development of semiconductors, a Northeastern University supply chain expert says.

Since President Biden blocked the purchase last week, citing national security concerns, now is the time to modernize domestic steel production to meet U.S. demand, says Muhammad Noor E Alam, a Northeastern associate professor of mechanical and industrial engineering.

Both Nippon Steel and Pittsburgh-based U.S. Steel have sued the administration over the decision, so the final outcome is far from certain. However, Alam says, it’s understandable that the U.S. government would not want the sale to go through.

“No one wants to give their critical infrastructure development resources to be controlled by a foreign country,” he says.

Yet, Nippon’s offer would have brought advanced technologies and modern infrastructure to U.S. Steel’s out-of-date manufacturing system, Alam adds.

“The current U.S. manufacturing infrastructure and engineering capabilities are not very advanced,” he says. “Technological advances that other countries have achieved are not being fully utilized in the U.S.”

Read full story at Northeastern Global News

Related Faculty: Muhammad Noor E Alam

Related Departments:Mechanical & Industrial Engineering