U.S. Steel released an economic report for the Hoosier state, claiming to generate $1.8 billion in economic impact and help to advance Indiana’s economy, workforce and communities.
“Indiana has been at the heart of U.S. Steel’s story for more than a century,” U.S. Steel CEO David Burritt said in a news release. “Gary Works has been a cornerstone of American steelmaking since 1908, and today it continues to power the state’s economy while supporting thousands of good-paying jobs. This report reflects not only our $1.8 billion impact on Indiana, but also our commitment to building a sustainable future for steel, for our communities and for generations of Hoosiers.”
The steel company’s report is the first done for Indiana and was conducted by Parker Strategy Group, a Philadelphia-based consulting agency. For the report, Parker Strategy Group focused on benefits from the 2024 fiscal year.
In addition to the large total economic impact, the study found that U.S. Steel supports 8,402 jobs statewide and contributed $67.4 million in state and local tax revenue, according to a news release. Total tax revenue was $245.6 million, according to the study.
“The first Indiana analysis shows just how deeply U.S. Steel shapes the state’s economy and communities — supporting more than 8,400 jobs, investing in 401 Indiana-based supplies, and generating millions in tax revenue that funds schools, infrastructure and essential services,” Nichole Parker, managing principal of Parker Strategy Group, said in a news release.
According to U.S. Steel’s website, the company has three locations in Northwest Indiana — a tin mill in East Chicago, Gary Works and its Midwest Plant in Portage. U.S. Steel has 4,341 employees in Indiana, and it’s helped create 4,061 additional positions through “supply chain activity and household spending,” according to the report.
The steel company also partnered with 401 Indiana-based vendors in 2024, according to its report. U.S. Steel also contributed about $154,000 to Indiana community programs, including Save the Dunes and sponsorships for the Gary Air Show and Portage Festival of Lights.
In a Monday email, Steve Segura, Gary spokesman, said U.S. Steel’s impact on the city is “incredibly vital” and the Gary Works facility is the city’s largest economic engine, providing the most jobs and largest tax base, which Segura said “is critical for funding our essential municipal services, schools, and infrastructure improvements.”
In its report, U.S. Steel mentions its “historic partnership” with Japanese company Nippon Steel, which makes the joint company the world’s fourth-largest steelmaker. The deal was finalized in June and includes an $11 billion investment.
“The Nippon Steel investment in U.S. Steel is a historic opportunity to enable advanced steelmaking at Gary Works, creating new livelihoods for the next generation of workers, who along with all Hoosiers will benefit from the company’s strategy of uniting economic growth, community investment, workforce opportunity and sustainability,” state Senator Hal Slager, R-Schererville, in the U.S. Steel news release.
Dan Killeen, vice president of the Gary Works facility, also praised the Nippon deal in the U.S. Steel news release, saying that the partnership will modernize the American company.
“Combining U.S. Steel’s expertise, workforce and legendary footprint with Nippon Steel’s world class technology will accelerate transformation in Indiana and across the organization — leading to another century of impact on the local economy,” Killeen said.
In December 2023, Nippon first announced it planned to buy U.S. Steel for $14.9 billion in cash and debt, and committed to keep the American company’s 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. Before he left office, Biden blocked the acquisition following a review by the Committee on Foreign Investment in the United States that 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.
According to a U.S. Securities and Exchange Commission filing, Nippon plans to invest $3.1 billion in the Gary Works facility from 2025 to 2028, starting with $400 million this year. In 2026, Nippon plans to invest $900 million, followed by $800 million in 2027 and $1.1 billion in 2028.
“The acquisition by Nippon Steel marks a new, transformative chapter for the mill and for Gary, one that is focused on modernization and expansion,” Segura said in his Monday email. “This partnership is leveling up our economy in Gary and securing its future for the next generation of steelworkers.”
The investments started with $200 million to the hot strip mill, and Nippon is expected to fund a reline of Gary Works’ blast furnace through the investment.
“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,” Gary Mayor Eddie Melton previously said in a statement.