At a glance
• U.S. Steel's new owner, Nippon Steel, plans to invest $3.1 billion in the Gary Works steel mill over the next few years.
• U.S. Steel disclosed in a U.S. Securities and Exchange Commission filing that it would invest $3.1 billion in Gary Works between 2025 and 2028. That's more than triple the previous pledge of $980 million in investment.
• Nippon Steel originally pledged to invest nearly $1 billion in Gary Works, but then the sale was blocked by the previous administration over national security fears that little domestic steelmaking would be left if it were ever needed during wartime. The Tokyo-based steelmaker, the fourth largest in the world, bumped its promised investment up to $14 billion in order to get the deal done with the current administration.
• U.S. Steel disclosed in the SEC filing it plans to invest $400 million at Gary Works this year, $900 million next year, $800 million in 2027 and $1.1 billion in 2028.
• Nippon Steel plans to invest more in Gary Works than in any of U.S. Steel's other facilities in the country. The steelmaker disclosed in the SEC filing it would invest $3 billion in Big River Steel in Arkansas, $2.4 billion in Mon Valley in Pennsylvania, $800 million in the Keetac and Minntac mines in Minnesota, $500 million in Alabama Fairfield Works and $1 billion on a new mini mill at an undisclosed location.
U.S. Steel's new owner, Nippon Steel, plans to invest $3.1 billion in the Gary Works steel mill over the next few years.
U.S. Steel disclosed in a U.S. Securities and Exchange Commission filing that it would invest $3.1 billion in Gary Works between 2025 and 2028. That's more than triple the previous pledge of $980 million in investment.
Randy Palmateer, business manager of the Northwestern Indiana Building and Construction Trades Council, said an investment of that magnitude would guarantee a significant amount of work for skilled tradespeople along the lakefront.
"$3 billion, that's crazy. That's awesome," he said. "That's great news."
U.S. Steel plans to spend $300 million to reline Blast Furnace No. 14, the largest at Gary Works. Nippon Steel Vice Chairman Takahiro Mori said during the visit to Gary that the steelmaker may revive the tin mill at Gary Works, which was idled indefinitely due to market conditions but which Mori said may be viable again due to 50% tariffs on nearly all imports of foreign steel.
The steelmaker declined to comment on what the rest of the money would be invested in. U.S. Steel spokesman Andrew Fulton said no other projects have been publicly identified at this point.
Nippon Steel originally pledged to invest nearly $1 billion in Gary Works, but then the sale was blocked by the previous administration over national security fears that little domestic steelmaking would be left if it were ever needed during wartime. The Tokyo-based steelmaker, the fourth largest in the world, bumped its promised investment up to $14 billion in order to get the deal done with the current administration.
U.S. Steel disclosed in the SEC filing it plans to invest $400 million at Gary Works this year, $900 million next year, $800 million in 2027 and $1.1 billion in 2028.
"We're glad it's spread out as opposed to one big project," Palmateer said. "We often have big projects ending at the same time. We run around to get all the manpower and then the projects just end. It can be feast or famine in the trades. But this is spread out over three years so it will be steady work for the contractors and the workforce."
Nippon Steel plans to invest more in Gary Works than in any of U.S. Steel's other facilities in the country.
The steelmaker disclosed in the SEC filing it would invest $3 billion in Big River Steel in Arkansas, $2.4 billion in Mon Valley in Pennsylvania, $800 million in the Keetac and Minntac mines in Minnesota, $500 million in Alabama Fairfield Works and $1 billion on a new mini mill at an undisclosed location.
"We're already seeing the dividends from Nippon Steel coming in," Palmateer said. "They're keeping their word. It's awesome news for Northwest Indiana and the city of Gary. The lakefront is our bread and butter. It's a big provider of capital projects and maintenance projects."
U.S. Steel had been skimping on capital projects at Gary Works in recent years, cutting back on maintenance and upkeep as a cost-saving measure.
"This is a great big investment. It's the biggest in years. It's the biggest in some time at Gary Works," Palmateer said. "I can't think of the last time they made an investment of this size."
Gary Chamber of Commerce President Chuck Hughes said the investment should secure the future of Gary Works for some time to come.
"Any investment of that magnitude cements their existence here in the city of Gary with their proximity to the lake, infrastructure already in place and the multiple modes of transportation for shipping and moving their product," he said.
Hughes said that he was never worried that Gary Works would close, but that the city welcomed the investment. He said he hopes the city will reap the benefits.
"The tax advantages afforded to U.S. Steel by the state of Indiana may not necessarily be made available in another locale," he said. "Economically, the most important factor would be if some form of new job creation would be part of the agreement to provide a proportionate number of employment opportunities for Gary residents. Secondly, as a good corporate citizen, the company would support the city of Gary and its affiliate groups and organizations."
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