U.S. Steel Gary Works to Invest in Advancing Metallics Strategy

SEATTLE (Scrap Monster): Pittsburgh-based steelmaker United States Steel Corporation (U.S. Steel) advanced its metallics strategy by insourcing pig iron production capabilities at Gary Works. The company plans investment of approximately $60 million, which in turn will lead to production of up to 500,000 tons of pig iron every year.

The successful implementation of the project will result in Gary Works providing nearly half of Big River Steel’s other ore-based metallics needs. Furthermore, it is likely to contribute over $30 million of run-rate enterprise EBITDA benefits and deliver over 30% internal rate of return.

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The permitting process for the project is currently underway, with construction expected to commence in during the initial half of the current year. The pig iron production at Gary Works is expected to begin in the first half of 2023. The pig iron investment will be offset within the previously announced capital spending budget of nearly $2.3 billion.

Commenting on the investment, David B. Burritt, President and CEO, U.S. Steel said that the company’s low-cost iron ore is an important strategic advantage for the company. The investment in pig iron is an important first step to translating its low-cost iron ore advantage to its EAF footprint while driving efficiencies at Gary Works, he added.