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US Steel announces USD 750 million in Gary Works

Steel News - Published on Fri, 17 Aug 2018

Image Source: US-China Investment News
Indiana Governor Eric J Holcomb and Gary Mayor Karen Freeman-Wilson joined David B Burritt, president and CEO of US Steel Corporation, as the company announced plans to make significant upgrades at its Gary Works plant through a $750 million asset revitalization investment that will increase efficiencies and position the facility for long-term success in Indiana. 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. 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.

Subject to the approval of the Indiana Economic Development Corporation board of directors, the IEDC will offer US 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 US Steel to allow the city, the Gary Community School Corporation, the Gary Public Library and US 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 US Steel.

Gov Holcomb said “Today’s news is a major step forward that will have a lasting positive impact on the city of Gary, the northwest region and the state of Indiana for years to come. US Steel has a rich history in Indiana, producing steel for customers around the world while providing quality career opportunities for Hoosiers and supporting their families here in northwest Indiana. We look forward to U. S. Steel’s continued success and growth right here in Gary, Indiana.”

Mr Burritt said “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. 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.”

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.

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Posted By : Ratan Singh on Fri, 17 Aug 2018
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