United States Steel Corporation Plans Major Upgrade at Gary, Indiana, Plant
18 August 2018
United States Steel Corporation plans to make significant upgrades at its Gary Works plant in Indiana, through a $750 million asset revitalization investment that will increase efficiencies and position the facility for long-term success in Indiana.
“We are pleased to be making this significant investment at Gary Works, which will improve the facility’s environmental performance, bolster our competitiveness and benefit the local community for years to come,” said David B. Burritt, U.S. Steel President & CEO.
“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,” he added.
Located on the south shore of Lake Michigan, Gary Works is U. S. Steel’s largest manufacturing plant and the largest integrated steel mill in North America. Gary Works has been in operation in Northwest Indiana since 1908. Comprised of both steelmaking and finishing facilities, Gary Works has an annual raw steelmaking capability of 7.5 million net tons. The facility provides more than 3,800 full-time jobs and manufactures sheet products, strip mill plate in coils, and tin products.
This includes the installation of new, state-of-the-art production equipment, machinery, and modernizing technology to better serve customers in the automotive, energy, industrial, metal building components, home construction, appliance and container industries.
With the increases in investment due to U. S. Steel’s $2 billion asset revitalization program, a minimum of $750 million in capital investments will be made over five years to modernize and enhance the company’s flagship operation in Gary, through building expansion and improvement.
Subject to the approval of the Indiana Economic Development Corporation board of directors, the IEDC will offer U. S. Steel up to $10 million in conditional tax credits over a 10-year period based on the company’s commitment to retain 3,875 Hoosier jobs. This offer of tax credits is also subject to the review of the State Budget Committee. The IEDC will also offer up to $2 million in Skills Enhancement Fund (SEF) training grants to support workforce development and training for Gary Works employees.
Additionally, the city of Gary will offer tax increment financing valued at approximately $35 million over 25 years based on a $750 million investment that will then be ameliorated through a development agreement in partnership with U. S. Steel to allow the city, the Gary Community School Corporation, the Gary Public Library and U. S. Steel to share the benefit of the company’s investment. This incentive and economic development financing method, which is subject to the Gary Common Council’s approval, will help generate immediate tax revenue for the city, create a Community Development Fund to further economic growth, and increase the city’s partnership with U. S. Steel.