Steel Mills

Gary Works Coke Plant to be Shut Down

February 28, 2015

US Steel told union workers it will permanently shut down coke-making operations at the Gary Works facility in Indiana. The closure will affect 300 employees and take place in mid May.

A US Steel spokesperson said, “This strategic decision was made in light of the company’s long-term coke position and the future anticipated steelmaking operations, including the inclusion of an electric arc furnace.”

The Gary Works No. 5 and No. 7 coke batteries were closed in 2013. The mill is old and has not been updated said USW District 7 director Mike Millsap. The currently operating No. 2 battery produced around 593,000 tons of coke over the past two years. US Steel plans to discuss with union members and officials whether workers will be transferred or laid off.

Last month, US Steel announced coke operations at Granite City Works in Illinois would be closed in March, affecting 176 employees. In addition, layoffs will begin March 22 at the soon to be idled Chicago East tin plant.

US Steel’s Clairton Coke Works, near Pittsburgh, was upgraded in 2012 and is currently the largest coke manufacturing plant in the U.S. Annual production is estimated at 4.7 million tons. US Steel said future coke needs will be sourced from Clairton as well as purchased from outside sources.

US Steel plans to replace the blast furnace in Fairfield, Ala. with an electric arc furnace. The EAF would have an annual steel production capacity of 1.1 million tons and be fired by natural gas rather than coke.

According to the most recent earnings conference call with analysts, US Steel management advised that as of the end of March the company will have three of their blast furnaces off-line: the only one at Fairfield, one at Granite City and one at Gary Works.