Board OKs USS/ Nippon Steel investments at Edgar Thomson, Gary

Gary Works Hot Strip Mill upgrade 

USS’s largest manufacturing facility, Gary Works, on the south shore of Lake Michigan in Gary, Indiana, will receive $200 million for innovations to its hot strip mill. The project aims to optimize production costs and expand premium offerings, including heavy-gauge line pipe and automotive-grade steels. Gary Works includes both steelmaking and finishing operations. 

Edgar Thomson project advances 

Nine miles outside of Pittsburgh, in Braddock, USS is moving forward with a plan to install a new slag recycler at its Edgar Thomson Plant. The company is submitting an air construction permit to the Allegheny County Health Department for approval. Finalized engineering and construction will begin next year upon the department’s approval. The $100 million project will recycle byproducts from steelmaking. It will supply those byproducts for use in cement and other materials, cut emissions, and reduce landfill waste. It also is expected to create new revenue streams.

Nippon Steel investment milestone 

This week’s announcement represents $300 million of the $11 billion commitment Nippon made for the government’s approval to buy USS. The investments focus on upgrading infrastructure, improving operational efficiency, and preparing facilities for future demand. 

Industry context 

The US government approved the acquisition of U.S. Steel earlier this year under an agreement giving the U.S. government a “golden share.” The U.S. government holds the power to block any closure or sale of key assets without its approval. President Donald Trump championed the deal. He framed it as a way to secure American steelmaking capacity and attract foreign investment to upgrade legacy plants.

Earlier this week, USS announced the reversal of its plans to end slab processing in Granite City. The president maintained terms of the USS/Nippon agreement with the government which explicitly stated that the facility must not be idled, closed, or sold before June 2027.