U.S. Steel plans to close its Gary Works coke plant in May, displacing about 300 workers. It will mark the end of a coke-making era at the steel plant that once operated three coke batteries.
U.S. Steel spokeswoman Courtney Boone said Thursday the company notified United Steelworkers of America officials on Wednesday of the permanent shutdown. She said it was a strategic decision based on market conditions and the company's long-term coke strategy.
It's unclear where Gary Works will obtain its coke once the plant closes.
U.S. Steel applied for a permit last year to construct an electric arc furnace at its Fairfield Works plant in Birmingham, Ala., to replace an existing blast furnace. U.S. Steel officials say the electric arc furnace will improve its operations so it can adapt to global demand, while reducing its capital spending and maintenance costs related to running a blast furnace.
Made from crushed coal cooked at extremely high temperatures, coke is a key raw material in iron-making, providing heat for the blast furnace. It comes with costly environmental challenges, however, and steel industry experts say coke-making could become obsolete in the future as the steel industry turns to cleaner technology.
USW District 7 director Mike Millsap said he hopes displaced workers can land new jobs in the mill.
"Obviously, it's not something that we want, but they've been slowly taking it down. It's old." He pointed to new $1.2 billion coke plant upgrade at Clairton Plant, in Clairton, Pa., near Pittsburgh.
"They haven't made investments in this facility," said Millsap of Gary Works.
Millsap agreed with steel analysts who say the steel market is softening, as prices are going down while competition from low-priced imports continues.
Last month, U.S. Steel notified state officials it was idling operations at its East Chicago tin plant and laying off 397 workers. The layoffs will begin March 22. The company said it was taking the action because of a significant decline in customer orders due to low-priced imports of tin mill products.
Source: Chicago Tribune
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