Sunoco Inc said that its Gateway Energy and Coke Co. subsidiary will build a plant to supply coke and steam to US Steel Corp's steel works at Granite City in Illinois.

As per report the plant will have 120 heat recovery ovens capable of producing 650,000 tons of coke per year, which will be sold to US Steel under a 15 year contract. The plant also will supply steam to a cogeneration plant that US Steel will build and run.

Gateway expected to begin work on the plant and take 18 months to complete it. The plant will cost USD 290 million, excluding capitalized interest, to build.

Gateway is a subsidiary of SunCoke Energy Inc, Sunoco's coke business, which is located at Knoxville in Tennessee and sets up subsidiaries to build and run each of its plants. The Granite City plant, a second Haverhill, Ohio, plant that it expects to complete later this year and a plant it plans to build in Middletown, Ohio, will give SunCoke seven plants producing more than 6 million tons of coke per year.