Dive Brief:
- U.S. Steel said it will resume making steel slabs at its Granite City Works plant in Illinois to meet rebounding demand.
- The Pittsburgh-based company said Thursday it has begun to “restart” one of the plant’s two idled blast furnaces. It shut down its steel and ironmaking facilities in November 2023 following a United Auto Workers union strike to reduce costs.
- The decision to resume operations comes after U.S. Steel sought to redirect its slab production to other plants near Pittsburgh and Gary, Indiana, in September. AP News reported that the White House had intervened to block the company’s decision to idle the Granite City Works plant.
Dive Insight:
In June, the Trump administration greenlit Nippon Steel’s acquisition of U.S. Steel valued at $14.9 billion. As part of the deal, the companies signed an agreement that allows the president to intervene in “any covered transaction that threatens to impair the national security” of the United States. They also pledged to spend $14 billion on U.S. investments.
After the acquisition, U.S. Steel said it would “optimize” its operational footprint and wind down slab production at Granite City Works as part of the changes. However, the plant would be “maintained” in an operational state with no layoffs or adjustments to worker pay, a spokesperson said in an email Sept. 9.
Following pushback from city and union officials, U.S. Steel has reversed its plans for Granite City Works and begun to restart slab production. The move would bring back between 400 and 500 jobs to operate the blast furnace, AP News reported. A spokesperson did not immediately respond to a request for comment.
“Steel remains a highly competitive and highly cyclical industry, but we are confident in our ability to safely and profitably operate the mill to meet 2026 demand,” U.S. Steel President and CEO David Burritt said in a statement. “We look forward to partnering with all stakeholders…to ensure a safe and efficient start up and to discuss support for Granite City Works.”
The United Steelworkers labor union praised the move, saying it looks forward to “seeing production return” and its members resume steelmaking. Rep. Nikki Budzinski, D-Ill., also applauded the move, but expressed a need for a long-range commitment or investment to ensure jobs for the area.
“While this is good news for production on a temporary basis, we need more than short-term fixes,” Budzinski said in a statement Friday.
As domestic production ramps up for U.S. Steel, foreign manufacturers continue to weather the United States’ 50% tariffs on steel and aluminum imports. In August, Nippon Steel EVP Takahiro Mori said in an earnings call that Trump’s tariffs have been bad for China’s economy, but its acquisition of U.S. Steel would help the company grow amid trade uncertainty.
Last week, Canada-based Algoma Steel announced it will shut down its blast furnace and coke-making operations in early 2026 due to tariff pressures. The move is expected to affect more than 1,000 workers in Sault Ste. Marie, Ontario.
