GARY, Indiana — Following the approval of a multi-million dollar investment into the Gary Works facility, Mayor Eddie Melton was optimistic about what it means for the local mill’s future.

“The approval of this $200 million investment in the Gary Works hot strip mill is another powerful affirmation of the future of steelmaking in our city and the entire region,” Melton’s Wednesday afternoon statement said. “This funding, the first portion of Nippon Steel’s overall commitment, is not just about equipment — it’s about optimizing production and expanding into premium automotive steel, which secures high-value jobs for our hard-working steelworkers for the next generation.”

Following the approval of a multi-million dollar investment into the Gary Works facility, Mayor Eddie Melton was optimistic about what it means for the local mill’s future.

“The approval of this $200 million investment in the Gary Works hot strip mill is another powerful affirmation of the future of steelmaking in our city and the entire region,” Melton’s Wednesday afternoon statement said. “This funding, the first portion of Nippon Steel’s overall commitment, is not just about equipment — it’s about optimizing production and expanding into premium automotive steel, which secures high-value jobs for our hard-working steelworkers for the next generation.”

The two projects are part of Japanese-based Nippon Steel’s $11 billion investment. In June, a partnership between Nippon Steel and U.S. Steel was finalized, making the combined company the fourth-largest steelmaker.

According to a U.S. Securities and Exchange Commission filing when the transaction was finalized, Nippon plans to invest $3.1 billion in the Gary Works facility from 2025 to 2028. In 2025, Nippon plans to invest $400 million, followed by $900 million in 2026, $800 million in 2027 and $1.1 billion in 2028.

In December 2023, Nippon first announced that it planned to buy the American company for $14.9 billion in cash and debt, and committed to keeping the U.S. Steel name and Pittsburgh headquarters, according to Post-Tribune archives.

President Donald Trump, former President Joe Biden, and former Vice President Kamala Harris all previously said they opposed the deal, and before he left office, Biden blocked the acquisition after a review by the Committee on Foreign Investment in the United States cited national security concerns. In February, Trump said Nippon would drop its acquisition to make an “investment, rather than a purchase,” according to Post-Tribune archives.

In late 2024, A Nippon executive said Gary Works would receive about $1 billion as part of the deal, some of which would be dedicated to relining the facility’s blast furnace.

Melton has vocalized his support for the partnership since about August 2024, when it was first announced that Gary Works would receive about $300 million, if the deal was approved, for the facility’s blast furnace, which Melton previously said would allow for higher steel production and reduced emissions. With the investment, the Gary Works’ furnace should have its life extended by up to 20 years.

A spokesperson for U.S. Steel said in an email Thursday that the investment in the Gary Works’ hot strip mill is in addition to the blast furnace relining. Details on the projects have not been announced, the email said, but the company plans to provide updates when available.

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