United States Steel Corporation announced that it is advancing its metallics strategy by insourcing pig iron capabilities at Gary Works. The approximately USD 60 million investment will produce up to 500,000 tons of pig iron annually and provide a critical raw material input for its electric arc furnaces. Once complete, the Gary pig iron production is expected to provide nearly 50% of Big River Steel’s other ore-based metallics needs, contribute over $30 million of run-rate enterprise EBITDA benefits and deliver an internal rate of return in excess of 30%.The permitting process is well underway, with construction expected to commence in the first half of 2022. Pig iron production at Gary Works should begin in the first half of 2023. The company expects to maintain its previously stated 2022 capital spending budget of approximately USD 2.3 billion by offsetting the pig iron investment within the capital budget. The decision to self-fund pig iron production rather than contract is expected to further enhance Big River Steel’s cost structure while adding value at Gary Works by driving blast furnace efficiencies without reducing Gary Works’ raw steel output. The Gary Works is a major steel mill in Gary in Indiana on the shore of Lake Michigan. For many years, the Gary Works was the world's largest steel mill, and it remains the largest integrated mill in North America. The Gary Works includes both steelmaking and finishing facilities as an integrated mill, and has an annual capacity of 8.2 million tons.
United States Steel Corporation announced that it is advancing its metallics strategy by insourcing pig iron capabilities at Gary Works. The approximately USD 60 million investment will produce up to 500,000 tons of pig iron annually and provide a critical raw material input for its electric arc furnaces. Once complete, the Gary pig iron production is expected to provide nearly 50% of Big River Steel’s other ore-based metallics needs, contribute over $30 million of run-rate enterprise EBITDA benefits and deliver an internal rate of return in excess of 30%.The permitting process is well underway, with construction expected to commence in the first half of 2022. Pig iron production at Gary Works should begin in the first half of 2023. The company expects to maintain its previously stated 2022 capital spending budget of approximately USD 2.3 billion by offsetting the pig iron investment within the capital budget. The decision to self-fund pig iron production rather than contract is expected to further enhance Big River Steel’s cost structure while adding value at Gary Works by driving blast furnace efficiencies without reducing Gary Works’ raw steel output. The Gary Works is a major steel mill in Gary in Indiana on the shore of Lake Michigan. For many years, the Gary Works was the world's largest steel mill, and it remains the largest integrated mill in North America. The Gary Works includes both steelmaking and finishing facilities as an integrated mill, and has an annual capacity of 8.2 million tons.
