U.S. Steel 'Renaissance' Spurs $750M Gary Works Investment

Posted: Updated:
(Image courtesy of the Indiana Economic Development Corp.) (Image courtesy of the Indiana Economic Development Corp.)
GARY -

Pittsburgh-based U.S. Steel Corp. (NYSE: X) has announced a $750 million investment in its Gary Works operations. The company says the funds are part of a $2 billion asset revitalization effort that will take place over the next five years. Last year, U.S. Steel detailed plans that involved pumping $35 million into Gary Works, which followed the $23 million first phase of its Hot Strip Mill Restoration Plan. The latest investment, the Indiana Economic Development Corp. says, won't create additional jobs at the massive Lake County operation, but will retain more than 3,800 full-time positions.

Gary Works has been running in the region for 110 year. It is considered the steelmaker's flagship and largest production plant and is the largest integrated steel mill in North America. U.S. Steel Chief Executive Officer David Burritt says the investment will "improve the facility’s environmental performance, bolster our competitiveness and benefit the local community for years to come. Through the skill and determination of our employees, support from the state and city, without which this project would not be possible, and favorable trade policies with the strong Section 232 national security action on steel imports, we are experiencing a renaissance at U. S. Steel."

The plant can produce 7.5 million net tons of raw steel each year and it includes steel making and finishing capabilities. Plans for the modernization initiative include new production equipment, machinery and technology. The facility serves customers in automotive, energy, industrial, metal building components, home construction, appliance and container industries.

"We are pleased about this investment in the plant and even more encouraged by a deepened partnership with the company of the city's origin," said Mayor Karen Freeman-Wilson. "This is also consistent with our development plan which builds on our strong manufacturing history and allowing us to diversify commerce in the areas of education and medicine; recreation and gaming; logistics and technology."

Earlier this month, U.S. Steel reported net earnings through the first half of the year of $232 million, compared to $81 million during the first six months of 2017.

The IEDC, pending approval from its board, will offer the company up to $12 million in conditional tax credits and training grants. The city of Gary is set to offer some $35 million in tax increment financing over 25 years as part of an arrangement that includes a yet-to-be approved Community Development Fund.

You can connect to more about the announcement by clicking here.

  • Perspectives

    • 3 Ways to Hire For a Cultural Fit

      While the vast majority of companies long for a strong work culture, not all are willing to put in the extra effort that it requires. Instilling culture in new team members isn’t a task that can simply be checked off a list. Rather, it’s a series of things company leadership must do that begins with the hiring process. It doesn’t end there either, though. Companies must be devoted to protecting their culture at all costs. Culture doesn’t happen on it's..

    More

Subscribe

Name:
Company Name:
Email:
Confirm Email:
HTML
INside Edge
Morning Briefing
BigWigs & New Gigs
Life Sciences Indiana
Indiana Connections
INPower
Subscribe
Unsubscribe

Events



  • Most Popular Stories

    • Photo of Gary City Hall courtesy of the City of Gary

      Gary Bank Partnership Awards First Microloan

      The city of Gary is partnering with First Financial Bank to offer small business loans to local businesses who enter the Gary Micro-Enterprise Initiative. The city has named Joslyn Kelly, owner of J’s Breakfast Club, the first recipient of funding through the program.

    • (photo courtesy of Aisin USA Manufacturing Inc.)

      Council Approves Seymour Projects

      Two companies in Seymour are planning expansion projects. The Seymour Tribune reports the city council has approved tax abatements for more than $47 million in investments from Aisin USA Manufacturing Inc. and The Andersons Inc.

    • (rendering courtesy city of Kokomo)

      Kokomo Hotel Could See New Developer

      City officials say a new developer for a proposed $26 million hotel and conference center in downtown Kokomo could be announced soon. The Kokomo Tribune reports the project continues to move forward despite Fishers-based Dora Hotel Co. LLC pulling out of the project earlier this month.

    • NIBCO is headquartered in Elkhart. (photo courtesy of NIBCO)

      Companies Detail Closures, Layoffs

      Four companies have announced plans to lay off a total of nearly 300 employees. In separate notices filed with the state, the companies say the moves will affect workers in Indianapolis, Fort Wayne, Charlestown and Peru.

    • Indiana Rail Operator to be Acquired

      The owner of several Hoosier short-line railroads will soon be under new ownership. Illinois-based Pioneer Railcorp has announced an agreement to be acquired by BRX Transportation Holdings LLC.