U.S. Steel has announced plans to restart steel production at its Granite City Works plant in Illinois, a facility that has been idle for two years. This decision comes as demand for steel increases, prompting the company to reopen the blast furnace that was closed in 2023. The Granite City facility, located just across the Mississippi River from St. Louis, previously ceased operations amid strikes by the United Auto Workers.
In a statement released on Thursday, U.S. Steel’s CEO, David Burritt, cited “customer demand” as the driving factor behind the decision to restart production. “After several months of carefully analyzing customer demand, we made the decision to restart a blast furnace,” Burritt noted. He expressed confidence in the company’s ability to operate the mill safely and profitably to meet projected demand levels for 2026.
The company plans to resume steel production in the first half of 2025. To achieve this, U.S. Steel will need to hire and train approximately 400 of the 500 workers required to operate the plant effectively. Currently, there are only 12 operating blast furnaces in the United States, according to the American Iron and Steel Institute, a significant decrease from around 140 in the 1970s due to increased foreign competition.
Economic conditions in the steel industry have shown signs of improvement over the past few years. Analysts attribute this resurgence in the U.S. steel market to the tariffs established under former Presidents Donald Trump and Joe Biden. Additionally, the revival of the automotive and construction sectors has contributed to the uptick in demand for steel. In October 2024, domestic steel mills shipped 7.7 million net tons, marking a 9% increase compared to the same month the previous year. Year-to-date shipments through October also rose by 5% compared to the same period in 2023.
The decision to restart production follows a significant acquisition move in the industry. Less than six months ago, Japan-based Nippon Steel reached a deal to acquire U.S. Steel for $14.9 billion. To address national security concerns regarding the acquisition, Nippon Steel agreed to allow the federal government a role in certain decisions affecting domestic steel production, including the closure or idling of U.S. Steel’s plants. In addition, the company committed to investing around $14 billion in U.S. steel production, which includes plans to build a new electric furnace.
Under the terms of the national security agreement, protections for Granite City Works will expire in 2027, while safeguards for U.S. Steel’s other facilities will remain in place until 2035. The Granite City Works plant primarily produces rolls of sheet steel utilized in construction, container manufacturing, pipe production, and the automotive industry.
As U.S. Steel prepares to ramp up operations at Granite City Works, the industry will be watching closely to see how this decision impacts the broader steel market and employment in the region.