Steel Mills
U.S. Steel Announces Major Investment at Gary Works
Written by Sandy Williams
August 19, 2018
U.S. Steel announced on Thursday that it will invest a minimum of $750 million for asset revitalization at its Gary Works facility in Indiana.
“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 President and CEO David 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.”
U.S. Steel will spend the $750 million at Gary Works over the next five years for building expansion and improvements. The company plans to install new production equipment, machinery and technology at the integrated steelworks.
State and local governments are teaming up to offer incentives to U.S. Steel to continue to grow in Indiana.
The Indiana Economic Development Corporation will offer U.S. Steel up to $10 million in conditional tax credits over a 10-year period based on a commitment by the steel producer to retain 3,864 jobs. IEDC will also offer up to $2 million in Skills Enhancement Fund training grants for workforce development and training for Gary Works employees.
The city of Gary will offer tax increment financing, valued at approximately $35 million over 25 years, to U.S. Steel in return for an agreement to share the benefit of the company’s investment with the city, Gary Community School Corp. and Gary Public Library. Subject to Gary Common Council’s approval, the incentive will generate immediate tax revenue for the city and create a fund to further economic growth.
The Gary facility has been in operation since 1908 and is the company’s largest production plant and the largest integrated steel mill in North America. The plant has four blast furnaces and an annual raw steelmaking capability of 7.5 million tons. The mill produces steel sheet, strip mill plate in coils and tin products.
Earlier this year, U.S. Steel credited improved demand, pricing and President Trump’s trade policies as drivers for its decision to restart two blast furnaces at Granite City Works in Illinois.
Sandy Williams
Read more from Sandy WilliamsLatest in Steel Mills
Nucor earnings slump in first quarter, but better times seen ahead
Nucor’s profits fell precipitously in the first quarter, but the company has a rosier outlook for the following quarter.
Nucor names Batterbee, Bledsoe to HR roles
Nucor Corp. has promoted Thomas J. Batterbee to the position EVP of human resources and talent and appointed Elizabeth Bledsoe to the newly created position of president of human resources and talent.
Millett sees tariffs, CORE case benefiting SDI
Steel Dynamics' top exec thinks Trump’s tariff policies, as well as the results from the recent CORE case, will prove advantageous to the Fort Wayne, Ind.-based steelmaker and aluminum company.
USW digs in on opposition to USS-Nippon deal
“We remain deeply concerned about the national and economic security implications of the subject transaction,” the union stated in the letter dated April 21.
SDI’s Q1 earnings slump on-year, but up sequentially
SDI earnings slip in first quarter year over year, but are up sequentially.