U. S. Steel-Nippon steel partnership offers Gary a second chance
By Randy Niemeyer, Lake County Coucilman, District 7
Gary, Indiana is a city built on steel. Soon it could be rebuilt on steel, if a landmark partnership deal wins approval from Washington.
The iconic U. S. Steel company built the city of Gary from the ground up starting in 1906, establishing it as a major hub for American steel manufacturing.
But in recent years, Gary has struggled. So has U. S. Steel. Already grappling with aging plants, U. S. Steel has been further hurt by foreign competition from countries like China that engage in unfair trade practices enabled by weak US trade policies. In recent years, U. S. Steel has fallen to #24 on the global ranking. The company that once employed 340,000 Americans during World War II is now only able to support around 20,000 jobs. Some of its core facilities have been forced to temporarily pause operations or even close permanently, including a coke production plant at the Gary Works.
The United States has been offered a chance to alleviate these struggles through an investment partnership between U. S. Steel and Nippon Steel. This landmark deal would change the game for U. S. Steel, restoring the strength of American steel manufacturing and helping re-energize communities like Gary.
In the early 1900s, Gary, Indiana was a booming American city. Gary became a reliable destination for jobseekers, a commercial hub for the region and a city known for its beautiful buildings and architecture. People called it “The Magic City.”
Its flagship steel plant, Gary Works, was at the heart of its growth and appeal. The Gary Works plant was built to supply the Midwest with iron and steel for automotive and other manufacturing industries. By 1960, the giant plant employed 30,000 workers. With the steady employment provided by the mill, those workers were able to buy homes, support their families and create tight-knit communities. The city’s population surged to more than 178,000.
Unfortunately, today’s Gary is not the same city it was sixty-five years ago. Gary Works now employs around 2,000 people, even though it remains the largest integrated steel mill in North America. The city’s population is less than half of what it was in 1960. Homes, churches, theaters, schools and more have been abandoned, their facades left to crumble into the ground.
As things stand now, the city needs a second chance. Luckily, the U. S. Steel-Nippon Steel partnership is offering one.
The proposed U. S. Steel-Nippon Steel partnership would breathe new life into Gary. Nippon would revitalize Gary Works by investing hundreds of millions to refurbish an aging blast furnace. Its investments would preserve the remaining jobs at Gary Works and likely create new ones too, including in construction, to support major plant renovations.
Nationwide, the investment deal would bolster U.S. manufacturing. It would bring billions of dollars of new investments and technology into American steel production. In addition to Indiana’s Gary Works, U. S. Steel mills in Pennsylvania and Arkansas would see major investments, with the prosperity overflowing into surrounding communities. American industries dependent on steel production could also grow, using American-made steel to create American-made products, such as automobiles.
The investments from the U. S. Steel-Nippon partnership will bring back the strength of American-made steel. In fact, the deal would turn U. S. Steel, currently ranked #24 in the world, into part of the world’s third-largest steel maker.
President Trump has promised to bring a new era of job growth and manufacturing to the United States in his second term. With its wide-ranging positive impacts, this historic partnership will usher us into that era and begin to return cities like Gary to greatness too.
President Biden made the mistake of blocking this investment deal. The consequences could be devastating to the City of Gary and the thousands of workers who make a living making American Steel. I know President Trump will not make the same mistake. By reversing President Biden’s decision and allowing this landmark partnership deal to go through, President Trump can bring back the Midwest’s “Magic City” and make American steel great once again.