GARY — Nippon Steel plans to invest nearly $1 billion in Gary Works if its acquisition of U.S. Steel goes through.
The Japan-based steelmaker said it would invest $950 million in U.S. Steel's flagship steel mill at 1 N. Broadway in downtown Gary, and would look at reviving the idled tin mill.
Nippon Steel Representative Director and Vice Chairman Takahiro Mori announced the potential investment during a news conference at Gary City Hall Thursday.
“Nippon Steel will protect and grow U.S. Steel to secure a prosperous future for its employees, customers and communities. Gary Works has been central to the company’s history and success, and we have already committed to nearly $1 billion in investments that are specifically earmarked to maintain and upgrade its facilities so that it can thrive for years to come,” Mori said. "Our investment commitments total no less than $2.7 billion. Among these, almost $950 million, nearly $1 billion, will be allocated to Gary."
Nippon Steel pledged to invest $300 million to revamp Blast Furnace #14, which some steelworkers fear U.S. Steel would otherwise idle and not make an investment in. The company also would invest $648 million to maintain and prolong the life of equipment, spokesman Jack Coster said.
Nippon Steel would reline or repair four blast furnaces at Gary Works by 2030 and continue to operate the hot mill and cold mill.
Mori toured Gary Works Thursday as Nippon Steel presses to close the $14.9 million deal before the end of the year in the face of bipartisan political opposition.
“I’m pleased to be here today in Gary to tour the city and speak with employees about the important role that Gary Works will play in our vision. I want to thank Mayor Melton for his partnership and advocacy on behalf of his constituents, and the talented workers at Gary Works for their continued dedication to U.S. Steel’s mission,” he said.
Mayor Eddie Melton voiced his support for the merger, saying it would bring much-needed investment and help sustain the steel mill for the long term.
"I'm coming to share my perspective on this, and my support for this deal and why it's important for the city of Gary," he said. "In 1906, U.S. Steel founded the city of Gary. If it was not for that entity, we would not be here today. When you flash back over the years, when you have Eastern Europeans and individuals from all over the world who migrated to work in our steel mills, that same vibrancy is still here today in terms of that grit and determination, whether it was individuals who migrated from the south, from Mississippi and Alabama like my family that was seeking employment and seeking job opportunities for United States Steel. They put their roots down here in Gary, Indiana."
Melton called on President Joe Biden to approve the acquisition before the end of his term.
"This is not just about Gary, Indiana," he said. "There are communities like Birmingham, Alabama; Mon Valley, and Pittsburgh that are wrestling with the fate of this deal. When I first heard of this deal, I was skeptical as well. I wasn't sure what the fate was going to look like for the city of Gary. I was uncertain what the next direction it would go in. But for the city, this partnership would mean so much."
The Committee on Foreign Investment in the United States is poised to give a report to Biden about whether the acquisition would pose a national security threat to the United States.
"There shouldn't be an issue for us to allow one of our closest allies in Japan, that has been in Indiana for over 50 years," he said. "They have two plants in central Indiana."
Gary Works once had 30,000 workers but now has around 4,000, Melton said. Gary once had 200,000 residents but now has around 70,000.
"Gary has had its fair share of the impact of the downturn of the steel industry over the last several decades," he said. "As the 22nd mayor of the city of Gary, I wanted to show my support for the city of Gary. We have done our due diligence to make sure it's the right thing for the citizens, the right thing for the economy and the right thing for the United States."
Melton encouraged the United Steelworkers union to sit down with Nippon to address any issues or concerns about the sale and encouraged steelworkers to urge the union leadership to work out its differences with Nippon Steel.
Congressional Black Caucus members Bennie Thompson, Maxine Waters and Jim Clyburn, whom Melton described as champions for the city of Gary, also voiced support for the deal in a letter.
“For years, the city of Gary has shouldered the economic and environmental consequences of U.S. Steel’s operations, enduring divestment, job losses, and diminished community investment," Thompson and Waters wrote in the letter, which Melton read. “The steel industry’s decline has left a lasting mark on Gary, where citizens deserve security and assurance that their quality of life will not be further jeopardized.”
Melton also voiced fears about U.S. Steel CEO David Burritt saying he would potentially close down some of U.S. Steel's integrated facilities. He said the sale could result in job security for union steelworkers, result in local investment, ensure competitiveness, attain tax equity, facilitate community support, bring about environmental remediation and result in pollution controls that would comply with U.S. Environmental Protection Agency mandates and result in cleaner air and water.
Protestors gathered outside the steps of Gary City Hall to protest Nippon Steel's plans to reline blast furnaces, extending their campaigns.
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“We remain opposed to this deal based on Nippon Steel’s abysmal global track record on environmental issues. Nippon is currently building two outdated blast furnaces in India and is also investing heavily in coal mining operations in Australia and Canada when we must move away from coal and fossil fuels to meet global climate goals. Even their own shareholders in Japan protested these moves simply because it is not a profitable, sustainable model," Just Transition Northwest Indiana Director of Legislative Policy Susan Thomas said in a statement. “No matter who ultimately purchases USS, any buyer with plans to reline its blast furnaces will be condemning the future of Indiana steel jobs in a global industry already transitioning to sustainable steel, where buyers are rapidly emerging. Sustainable steel based on Direct Reduced Iron technologies and green hydrogen made only from renewable sources like wind and solar energy is the direction steel manufacturing in Indiana must go to preserve jobs and protect worker health and communities.”
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