Key Highlights
- U.S. Steel will restart steel-slab production at its Granite City Works plant in Illinois after analyzing strong customer demand.
- The reopening comes two years after the company idled the blast furnace amid falling demand and UAW strikes.
- The move aligns with national security expectations following Nippon Steel’s $14.9B acquisition agreement and increased U.S. steel market resilience.
U.S. Steel announced that it will resume steel-slab production at the Granite City Works facility in Southern Illinois, marking a significant turnaround for a plant that saw its last blast furnace shut down in 2023.
The decision follows renewed strength in the domestic steel market, driven by industrial recovery, supportive trade policy, and rising shipment volumes across the manufacturing industry.
The Pittsburgh-based company had previously planned to wind down steel processing at the site, but pressure from the White House and a renewed spike in demand pushed the company to reconsider. Now, U.S. Steel says it will restart the idled blast furnace to meet anticipated 2026 demand.
“Customer Demand” Drives Restart as U.S. Steel Signals Market Confidence
“After several months of carefully analyzing customer demand, we made the decision to restart a blast furnace,” CEO David Burritt said. He added that while steel remains a cyclical and competitive industry, the company is “confident in our ability to safely and profitably operate the mill.”
It is expected to resume U.S. Steel Production in the first half of next year, pending worker hiring, training, and equipment restoration. The company needs 400 new hires out of the roughly 500 workers required to fully operate the site.
Improved Market Conditions, Shipments Strengthen U.S. Steel’s Position
Today, only 12 blast furnaces remain in operation across the U.S., down from about 140 in the 1970s. Yet analysts say the domestic steel sector has improved significantly due to:
- Tariffs under President Donald Trump and President Joe Biden
- Stronger construction and automaking activity
- Rising shipments across U.S. steel mills
The American Iron and Steel Institute reported that mills shipped 7.7 million net tons in October, 9% higher than a year earlier. Year-to-date shipments through October are up 5% compared to 2024.
Nippon Steel Deal Adds Strategic Context
The decision comes less than six months after Nippon Steel finalized its $14.9 billion acquisition agreement for U.S. Steel. To address national security concerns, Nippon Steel agreed to give the federal government a say in decisions on domestic production, including plant closures or idling.
It also pledged $14 billion in U.S. investments, including a new electric furnace. Protections for Granite City Works expire in 2027, while safeguards for other U.S. Steel facilities extend to 2035.
A Critical Facility for Industrial Supply Chains
Granite City Works supplies sheet steel for construction, container manufacturing, pipelines, and automotive production. Restarting operations ensures continued support for industries that rely heavily on domestic steel and strengthens the nation’s industrial resilience.