The board of directors for U.S. Steel have approved the next phase of the company’s capital investment plans, which include investment at Gary Works in northwest Indiana.
Following its acquisition of U.S. Steel earlier this year, Japan-based Nippon Steel said it would invest $11 billion in U.S. Steel plants nationwide by 2028, including $3.1 billion in Gary.
The latest approval by the U.S. Steel board is for $200 million to improve the hot strip mill at Gary Works. The steelmaker said the move will optimize production costs and expand premium product offerings, including heavy gauge line pipe and automotive steel.
U.S. Steel did not specify if any jobs would be added as a result of the investment.
In addition to Gary, the steelmaker is investing $100 million to install a new slag recycler at its Edgar Thompson Plant in Pennsylvania. The company is seeking an air construction permit for the project and expects to begin construction next year after receiving permit approval and finalizing engineering planning.
“These two projects represent only a fraction of the activity underway as part of Nippon Steel’s investments in U. S. Steel,” the company said in a news release. “Across the company, multiple initiatives are advancing to upgrade infrastructure, enhance capabilities, and modernize facilities for the future.”
U.S. Steel has major operations in Indiana employing about 4,000 people. The company was founded the city of Gary in Indiana in 1906 with its Gary Works operation, which at one time employed some 30,000 people. The steelmaker also operates the Midwest Plant in Portage.
Nippon Steel in June finalized its nearly $15 billion takeover of U.S. Steel, following a deal with the Trump administration. The agreement created a so-called “golden share” provision that gives the federal government the power to appoint a board member and a say in company decisions that affect domestic steel production and competition with overseas producers.
Earlier this month, U.S. Steel said it would stop processing steel slabs at its Granite City Works plant in Illinois and “optimize” operations by focusing on processing raw steel at its Mon Valley Works facilities in Pennsylvania and Gary Works in Indiana.
However, the White House said Monday that President Donald Trump would exercise his “golden share” power to block that move. U.S. Steel then said it would continue to supply raw steel slabs to Granite City “indefinitely” and that it had “found a solution to continue slab consumption at Granite City.”
The Associated Press contributed to this report.