Nucor Opposes Government Assistance for Steel Merger

Nucor Corp. rejected a proposed plan whereby a proposed merger of integrated steel companies would receive assistance from the U.S. government.

In a sharply worded letter today, Dan DiMicco, president and CEO of Nucor, one of the largest steel companies in the United States, said "This industry needs comprehensive import relief from the president. Import relief under section 201 is the key to a strong U.S. industry, not a bailout of failing steel companies. The proposal by United States Steel Company is nothing more than an attempt to get the federal government to help a couple of companies at the expense of the rest of the U.S. steel industry and the taxpayers. Our government should not be picking favorites within the industry," DiMicco said.

DiMicco further stated, "A federal bailout will not solve the U.S. steel industry's problem; in fact it will make a real solution unattainable. A real solution to foreign subsidized imports is finally within reach. If the impending section 201 remedy is effective, it will bring our trading partners to the table to negotiate reductions in excess global steel capacity and foreign government subsidies. USX is now urging the president to copy the European and Asian models of 'substantial government involvement.' If we follow that course, our negotiators will lose all credibility.

"For well over a year, Nucor has worked with the entire industry, Congress and the administration to pursue a WTO-legal solution to the import crisis that has devastated the industry. A federal bailout of two or three steel companies is not required to achieve necessary industry consolidation.

Consolidation of efficient and productive facilities is occurring without any federal bailout. Import relief will improve the balance sheets of the viable companies, will lead to a globally competitive U.S. industry and will ensure that the industry will be more than capable of meeting our national defense needs."