U.S. Steel, you’ve taken a courageous step! The company in its new company strategy will continue raw steel processing at its Granite City Works plant across the Mississippi River from St. Louis. This dramatic flip flop follows closely on the heels of the company’s announcement last fall that it would stop these operations. The Granite City plant, about 30 miles outside of St. Louis, is a linchpin not only for the region’s economy, but for the steel industry as a whole.
Just earlier this year, U.S. Steel idled its last upstream (blast furnace) operation at the Granite City facility. This decision is just one piece of a broader plan to increase efficiency. This signaled an end of a trend that started in 2019 when another blast furnace was idled. The company didn’t want to fully cease processing operations, due to a desire for flexibility down the line. This intent was echoed in testimony given around that time.
Given changing market conditions and significant investment commitments to the joint venture by Nippon Steel, U.S. Steel has now chosen to backtrack. In response, Nippon Steel has increased its financial guarantees for the facilities owned by U.S. Steel. This annual bump was almost certainly a major driver of their decision. Yet due primarily to the introduction of a “golden share” provision, the federal government can now dictate some corporate decisions. This amendment addresses those past national security doubts head on.
The Granite City Works plant is one of a half dozen finishing mills owned by U.S. Steel. You can get to know other terrific green plants like our Mon Valley Works in Pennsylvania and Gary Works in Indiana. These facilities are key to the company’s continuing expansion of production capacity.
In a statement regarding the recent developments, a spokesperson for U.S. Steel remarked, “Our goal was to maintain flexibility, and we are pleased to have found a solution to continue slab consumption at Granite City.” This is a great sign of dedication to keeping things running in the face of past intentions to downsize.
The United Steelworkers union, which represents workers at Granite City, sounded a note of resolve on the fate of the company’s past. They stated, “To show management that we don’t go away without a fight – and we never will.” The depth of this sentiment illustrates the long-standing employer-labor relationship, the need for strong employee advocacy and a voice in corporate decision making.
