U.S. Steel ‘Renaissance’ Spurs $750M Gary Works Investment
(Image courtesy of the Indiana Economic Development Corp.)
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As a subscriber you can listen to articles at work, in the car, or while you work out. Subscribe NowPittsburgh-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.
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