Trump Administration Halts U.S. Steel’s Illinois Mill Shutdown

President Donald Trump's administration has stopped U.S. Steel from idling operations at its Granite City, Illinois, plant. The intervention marks the first use of "golden share” rights, which were a condition of the over $14 billion takeover by Japan's Nippon Steel that cleared in June. This national-security agreement gave the White House veto power over plant closures and other strategic decisions.

U.S. Steel had announced plans to cut steel slab production at its Granite City Works mill. The company informed the mill's nearly 800 workers that the plant would close in November. Now a subsidiary of Nippon Steel, U.S. Steel said the original shift was part of an effort to "optimize” operations.

New Directives and Past Agreements

Following the government's action, U.S. Steel has changed its course. A company spokesperson confirmed, "U. S. Steel will continue to supply slabs to Granite City”. Employees at the mill will keep their jobs, continue to maintain the facility, and run auxiliary operations with no changes to pay.

When President Trump approved Nippon Steel's acquisition of U.S. Steel, he told workers that Nippon had agreed to keep the blast furnaces operating at full capacity for at least 10 years. The president also said the deal would not result in layoffs and promised there would be "no outsourcing whatsoever”.

Granite City Works Deal

Following a union strike, Granite City Works?awhich can produce 2.8 million tons of raw steel annually?aidled its steel and ironmaking production in November 2023. The plant currently processes slabs into sheets for construction, piping, containers, and automotive markets.

Since the strike, the Nipon Steel?deal?includes a national security agreement with $11 billion in new investments by 2028, and commitments to retain and create 100,000 jobs. Under that agreement, Granite City employees are expected to keep their positions through 2027.

Implications and Reception

While the immediate intervention may sound reassuring, workers and lawmakers remain concerned. The planned production cut raises questions about long-term job security. Past layoffs at the mill heighten anxiety, and union leaders worry about the future of the factory. United Steelworkers District 7 Director Mike Millsap said the union is seeking more information from the company and intends to hold Nippon Steel accountable to its commitments. U.S. Steel has not yet responded to the union's requests for information on the long-term plan for slab production at the site.

Image credit: kasarp studio/Shutterstock

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