U.S. Steel plans to invest $750 million in its 110-year-old Gary Works plant.
David Burritt, president and CEO of U.S. Steel, announced Thursday the company planned to invest a minimum of $750 million to upgrade the Gary Works plant – a plan that local and state leaders said not only shows a commitment to the steel mill and its employees but the community.
“We so appreciate this investment. We’re going to stay laser-focused and make sure that days like today pay off well, well, well into the future, not just in Lake County, not just for the Region but for the state of Indiana as a whole,” said Indiana Gov. Eric Holcomb.
Burritt said the new investment renews the company’s commitment to the future of steel making. U.S. Steel, which is headquartered in Pittsburgh, Pa., is making a companywide $2 billion investment in its facilities. The Gary Works plant has an annual steel making capacity of 7.5 million net tons, according to U.S. Steel, and has more than 3,800 employees on site.
“Today, we are committing this portion of funds to projects at Gary Works,” Burritt said. “We’re proud to be investing in the United States, in Indiana, and of course in the City of Gary.”
Burritt said the project wouldn’t be possible without adjustments to trade policy and federal action that imposed a 25 percent tariff on imported steel.
The new investments at the facility will allow U.S. Steel to become more competitive by upgrading technology and equipping workers with new tools, Burritt said.
“U.S. Steel has recently faced several very challenging years, with waves of unfair trade battering our company and the American industry,” Burritt said. “It took its toll on our employees and limited our engagement in the local community.”
U.S. Steel’s capital investment plan calls for new production equipment, machinery and modernizing technology at the Gary plant.
Gary Mayor Karen Freeman-Wilson said people are going to want to know what the announcement means to them.
“It means stability at the flagship. Those of you who are shoppers know what it means to have the flagship store in a community,” Freeman-Wilson said. “We have the flagship of U.S. Steel here in the City of Gary. It means stability for the workforce here at Gary Works. But it also means stability in a tax base or certainly assistance in a tax base in a community that has struggled.”
People call and want a pothole filled, want a house torn down, want something built, Freeman-Wilson said.
“We share those desires and dreams,” Freeman-Wilson said. “Unless you have the resources to get that done, then all of those are simply just that, desires and dreams.”
The city put together an incentive package of roughly $35 million for 25 years, according to a press release, and that will yield $2 million to support Gary, the Gary Community School Corp, and the Gary Public Library. The city’s Common Council must still approve the agreement.
The Indiana Economic Development Corp. is reviewing $10 million in tax incentives for U.S. Steel for 10 years based on the company retaining 3,875 jobs, according to the state. The package will include up to $2 million for workforce development programs.
Holcomb said during his trip to the Region, he has helped break ground for a new data center in Hammond on Wednesday, and now got to share U.S. Steel’s news.
“I hope this isn’t lost on anyone. I’m a little bit giddy about this right now. There’s not another county not just in the state, there’s not another county in the country that is celebrating two major game-changing projects and investments,” Holcomb said.
Holcomb said Indiana’s low cost of business, available workforce and history of partnerships is attracting new businesses and investment in the state.
“To paraphrase one of Gary’s own. Someone who went global. A legend. The King of Pop himself,” Holcomb said. “…If you’re thinking about starting a business or relocating a business, wherever you are in the world, Gary wants to rock with you.”