After U.S. Steel announced its partnership with Nippon Steel, a Japanese investor, Gary Mayor Eddie Melton wanted to ensure more investments for the city’s plant.
Nippon Steel plans to invest at least $300 million into the Gary Works facility, Melton said in a Wednesday statement. The investment will benefit steelworkers in northwest Indiana, the environment and Gary citizens.
“As a child of a steelworker, I want to make sure the current steelworker’s contract was honored, and that Gary remained a priority among the other plants across the United States,” Melton said.
In the past several months, the mayor had multiple meetings with Hiroshi Ono, president and CEO of Nippon Steel North America, Melton’s statement said, advocating for more investment in the Gary Works facility.
The $300 million will be invested in the facility’s blast furnace, which Melton said will allow for higher steel production and reduced emissions. With the investment, the Gary Works’ furnace should have its life extended by up to 20 years.
The investment will strengthen the industry and jobs, according to a statement from U.S. Steel.
In December, it was announced that Nippon Steel would buy the American company, according to U.S. Steel’s website. The deal hasn’t officially closed, but U.S. Steel expects it to be official in the second half of the year.
“For our employees, this is the best future for them and the communities where they live,” U.S. Steel’s Wednesday statement said. “Nippon Steel has a long-standing and deep respect for its employees and understands the critical role that the company’s dedicated workforce plays in its future success.”
Nippon Steel previously announced it would allocate $1.4 billion toward maintenance and other necessary capital investments. The Gary Works investment is in addition to the company’s previous amount, according to a Nippon Steel news release.
The Japanese company also plans to invest about $1.3 billion in U.S. Steel union-represented facilities, said a statement from David B. Burritt, president and CEO of U.S. Steel. The additional investment could affect both Gary Works and its Midwest Plant in Portage.
The two facilities employ about 4,500 steelworkers, according to U.S. Steel. The company had more than 20,000 employees at the end of 2023.
Nippon Steel’s commitment to Gary Works and U.S. Steel will benefit the entire American steel industry, Burritt’s statement said.
“The bottom line is these are investments in the future of integrated American steelmaking and the employees, families and communities that rely on it,” Burritt said. “U.S. Steel will be a much stronger company as a result of the transaction and these investments — the entire American steel industry will be stronger and more globally competitive, too.”
mwilkins@chicagotribune.com
