GARY — U.S. Steel is making a major investment in its flagship Gary Works steel mill, pumping $60 million into a pig caster that will connect its legacy integrated operations along the lakeshore to its growing mini-mill division down south.
The Pittsburgh-based steelmaker is installing a new pig caster that will convert iron ore hauled by freighter across Lake Michigan into pig iron that will feed its new electric arc furnaces in Arkansas. The pig caster will be able to produce 500,000 tons of pig iron per year, also serving U.S. Steel's blast furnaces.
Construction started earlier this year.
“Mined, melted and made in America has always been important to us, and recent world events have demonstrated how critical self-reliance is,” U.S. Steel President and CEO David B. Burritt said. “This investment at Gary Works, to create the necessary material for our lower-emissions electric arc furnaces, is the perfect example of combining the best of integrated and mini-mill technologies. It’s also helping propel our transition to our ambitious best for all strategy. We’re committed to a future of driving profitable steel solutions for people and the planet.”
It's a significant capital project for the company, which has been prospering, Burritt said.
"This last year we celebrated 120 years on the New York Stock Exchange. The symbol of X is X marks the spot," he said. "Last year was a big year for us, not just because of record profit. We had record safety, record quality and record reliability. We also were named Newsweek's most loved companies and one that we were most pleased with was we were named one of Ethisphere's Most Ethical Companies."
The company is positioning itself for the future, he said.
"We're in good shape. We expect the second quarter to be all-time records. That's a good place to be," Burritt said. "Yet this r-word keeps showing up, and it's probably going to happen. There's probably going to be a recession when the Federal Reserve chair said it's going to be a softish landing. But that's okay, we're loaded with cash and going to manage through it. We will be stronger than ever. We're not without our challenges. We're not without our mishaps. But we're investing. We're investing in our employees. We're making a difference for them with all-time record profit-sharing and we want that to continue."
U.S. Steel's new pig caster will be supplied by the ships that already ferry iron ore from U.S. Steel's mines in Minntac and Keetac in Northern Minnesota's Iron Range to Gary Works. The pig machine will make as much as 50% of the metallics needed for the steelmaker's new Big River Steel Works.
“Gary Works is U.S. Steel’s largest manufacturing plant, and its role in the company and in this community is significant,” said Daniel Killeen, vice president of Gary Works. “Knowing that the nearly 4,000 employees at Gary Works are not just contributing here, but we now get to utilize our blast furnace efficiency to contribute to the company’s new, most environmentally friendly operations at Big River Steel Works, is something we’re excited about.”
Currently, the mill at 1 N. Broadway in downtown Gary, which stretches along seven miles of Lake Michigan lakefront, makes more iron than the steel shops can take away, Killeen said. The new pig machine will let the mill cast 500,000 tons a year of pig iron into a usable form to lower costs at Big River and further optimize use of the company's mines in Minnesota.
Gary Works will move the finished product via barge and railcar to fuel electric arc furnaces in Arkansas.
Company officials, politicians and other dignitaries gathered at the Gary Works steel mill Thursday where they celebrated the capital project with a whole pig roast. The new facility is expected to add about 25 more permanent full-time jobs, as well as scores of temporary construction jobs.
It's an investment into the future of the mill, United Steelworkers Local 1014 President Gus Atsas said.
"The process of pigging iron will help secure our plant in an ever-changing global market," Atsas said. "The future of Gary Works and the United Steelworkers go hand in hand. Our families and communities depend on our success, and we are proud of the work we do every day."
U.S. Steel expects that the new pig caster will come online early next year.
“U.S. Steel and their incredible workforce, including members of the United Steelworkers, are the foundation of the Northwest Indiana economy," U.S. Rep. Frank Mrvan, D-Highland, said. "I am grateful they are making this investment in the steelmaking capabilities of our region and the ability of future workers to continue to make the most environmentally friendly and efficient steel in the world."
The construction process is well underway, with walls and foundations already completed, Killeen said. The hope is it will be up and running early in 2023.
"This pig project from conception to funding to start of construction has been a very personal journey," Killeen said. "Many folks knew how impactful it would be to this community and stakeholders in this Region. When the Gary facility roared to life in 1905, it all started with a light. That was the day the first open hearth furnace was tapped. As the furnace rotated in the night sky, it illuminated the sky with opportunity. It created an opportunity for immigrants from Europe, people from the southern states and locals from the Calumet Region to work in this modern industrial wonder of the world. Gary Works was unmatched as an industrial facility before or since."
The mill on the Lake Michigan lakeshore had an outsized impact over the years and remains relevant, he said
"It gave birth to the city of Gary and was a key foundation in the formation of United States Steel, the corporation," he said. "I'm proud to say this building will once again illuminate with light on the southernmost shores of Lake Michigan, not with the fire and fury of the open hearth but with the amber glow and hypnotic flow of iron ore. In this glow, opportunity is manifested once again. It solidifies our plant goals and our best of all strategy."
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