Citing Steel Tariffs, U.S. Steel Announces $750 Million Reinvestment In Gary, Ind., Plant
United States Steel Corporation announced August 16 that it was investing $750 million to revitalize and modernize a 110-year-old, barge-served steel plant in Gary, Ind. Located on the south shore of Lake Michigan, Gary Works is U.S. Steel’s largest manufacturing plant and the largest integrated steel mill in North America and has been in operation since 1908. The reinvestment would not add new jobs other than temporary contractor jobs but would preserve 3,875 jobs at the Gary Works.
Including both steelmaking and finishing facilities, Gary Works has an annual raw steelmaking capability of 7.5 million net tons. The facility manufactures sheet products, strip mill plate in coils, and tin products.
Indiana Gov. Eric J. Holcomb and Gary Mayor Karen Freeman-Wilson joined David B. Burritt, president and CEO of U.S. Steel, in Gary for the announcement.
Burritt had said in an earlier press release. Earlier in the year, U.S. Steel had announced that it was reopening an idled plant in Granite City, Ill. The Granite City reopening ceremony was attended on July 26 by President Donald Trump, who touted the reopening as a sign that his steel tariffs were working.
“Today’s news is a major step forward that will have a lasting positive impact on the city of Gary, the northwest region and the state of Indiana for years to come,” Holcomb said. “U.S. Steel has a rich history in Indiana, producing steel for customers around the world while providing quality career opportunities for Hoosiers and supporting their families here in northwest Indiana. We look forward to U.S. Steel’s continued success and growth right here in Gary, Ind.”
“We are pleased to be making this significant investment at Gary Works, which will improve the facility’s environmental performance, bolster our competitiveness and benefit the local community for years to come,” said Burritt. “Through the skill and determination of our employees, support from the state and city, without which this project would not be possible, and favorable trade policies with the strong Section 232 national security action on steel imports, we are experiencing a renaissance at U.S. Steel.”
With the increases in investment due to U.S. Steel’s $2 billion asset revitalization program, a minimum of $750 million in capital investments will be made over five years to modernize and enhance the company’s flagship operation in Gary, through building expansion and improvement. This includes the installation of new, state-of-the-art production equipment, machinery, and modernizing technology to better serve customers in the automotive, energy, industrial, metal building components, home construction, appliance and container industries.
U.S. Steel spokeswoman Meghan Cox told The Waterways Journal, “This announcement is a minimum commitment, as we deploy the $2 billion asset revitalization program in our North American flat-rolled facilities, the amount could very well grow. The investment covers a wide range of assets, and hundreds of projects, with a strong emphasis on seven critical assets: the four blast furnaces, the steel shop, the casters and the hot strip mill. This is a complex effort that will be marshaled over a period of years with individual projects of varying size performed by both internal expertise and external contractors–-all timed to minimize impact to production.”