Nippon Steel, owner of U.S. Steel, confirmed plans to revamp the aging coal-fueled facility at its Gary Works complex.
Community groups want a low-carbon steel mill. Nippon Steel is moving forward with its plans to renovate the coal-fueled furnace.
The Japan-based steel manufacturer acquired U.S. Steel in June. It will begin relining its largest blast furnace at the Gary Works steel mill in 2026, according to U.S. Steel CEO David Burritt.
The investment could extend the furnace’s operating life by up to 20 years.
Nippon Steel has committed to spending about $300 million to revamp Blast Furnace No. 14. It is the largest of four blast furnaces still operating at the Gary Works complex. The Japanese steelmaker said it will spend $3.1 billion across Gary Works as part of a $11 billion capital investment in U.S. Steel’s footprints through 2028.
“Gary Works supports a large number of jobs and demand in the Midwest, and we are moving forward with numerous investment plans to support the industry,” Burritt said in a Canary Media article.
Blast furnaces make the iron that’s turned into high-strength steel. America’s blast furnaces use specialized bricks that degrade over time. When that happens, companies can replace the bricks. Or they can put that money toward building facilities that make use of direct reduced iron technology that doesn’t require coal.
Climate advocates and community groups in Gary are urging Nippon Steel to take the second route.
“Today, the company is at a crossroads,” Toko Tomita, campaigns director at the advocacy group SteelWatch, said. “If this relining decision goes ahead, it would be a slap in the face for communities, and a coffin-nail for Nippon Steel’s reputation on climate.”
Tomita said that relining the Gary Works furnace is a short-sighted move that will leave Nippon Steel with outdated facilities at a time when automakers and other major steel buyers are signaling their demand for products made using lower-emission methods.
Along with its four Gary Works blast furnaces, U.S. Steel operates two blast furnaces at its Edgar Thomson plant in the Mon Valley Works in southwestern Pennsylvania. Nippon Steel has announced plans to schedule all six blast furnaces for relining or major repairs by 2030.
