Company Announcements
July 30, 2026
U.S. Steel flags concerns with Gary Common Council proposal
Written by Kristen DiLandro
U.S. Steel has flagged job loss among its concerns with a proposal presented by the Gary Common Council (GCC) in Indiana.
In a statement to SMU, the Pittsburgh-based steelmaker applauded the ongoing efforts by Gary, Indiana’s elected nine-member legislative body but had some disagreements.
Gary Common Council recommends
The council’s modernization proposal calls for a direct-reduced iron (DRI) function at Gary Works. It suggested ending blast furnace operations and called for the company to comply with updated federal hazardous air pollution standards. The resolution encouraged further investment in job training programs.
The proposal requested USS continue consideration of future greenfield steel manufacturing development in the state of Indiana.
USS reacts
USS defended its existing modernization plans. It highlighted the tradeoffs required of the community if the proposal were to be enacted as outlined.
“Direct Reduced Iron, or DRI, is an important steelmaking technology, but a DRI facility alone does not make steel. Using DRI at Gary Works as envisioned in the resolution, would require U. S. Steel to build an entirely new electric arc furnace-based steel shop from the ground up,” a USS spokesperson said in a statement. “This would mean shutting down the entire plant, demolishing it, and building new facilities which could take years.”
The statement also noted, “Certain grades of steel cannot be produced at scale yet at EAF facilities.”
In addition, USS explained that using an EAF would reduce the number of jobs at Gary Works.
“EAF-based facilities run with fewer employees than integrated facilities like Gary Works,” the statement explained. “This would mean fewer jobs for the Gary community.”
USS told GCC its investment plans at Gary Works aim to retain jobs, reduce consumption of water and natural gas, and reduce emissions.
“The billions being invested will update equipment, allowing for new products to be created and enabling us to use less coke in the steelmaking process, reduce emissions, reduce natural gas consumption, and reduce water use,” the statement said.
Background
Nippon Steel committed to invest $11 billion in U.S. Steel by the end of 2028 as part of its purchase agreement for USS.
In December 2025, the board at USS approved funding the full $350-million Gary Works blast furnace (BF) reline project. It noted that relining BF #14 was “critical maintenance.”
SMU was unable to reach the GCC for comment by the time of publication.
