“We would be producing our own steel — with foreign investment in our country. That’s a good thing.”
A lot of foreign takeovers are only about getting the customers and the business and moving the manufacturing offshore. Dont be deluded.
In the steel industry, it’s actually the opposite.
The U.S. government is a major buyer of steel — mainly for military production and highway bridges.
Federal law dating back to the 1930s requires government contracts to use at least 55% domestic content for these materials. This number has grown in recent years, and will be 75% by 2029.
Foreign steel producers like Nippon (Japan) and ArcelorMittal (Great Britain) are expanding their U.S. presence to take advantage of these domestic production requirements.