Fresh Contracts Bring In $5.6 Billion Investment To U.S. Steel Industry

SEATTLE (Scrap Monster): The domestic steel sector in the U.S. is likely to witness significant investment boost over the forthcoming years. The contracts that United Steelworkers (USW) union has entered with steel giants in the country predict investment of up to $5.6 billion by ArcelorMittal and U.S. Steel over the contract period of four years. These investments are likely to benefit steel mills along the Northwest Indiana lakeshore.

Pittsburgh-based U.S. Steel has committed to investment of $2.5 billion over the four-year contract period. Further, it has agreed to invest nearly $750 million over the next several years, as part of its earlier announced $2 billion asset revitalization program for Gary Works plant. It must be noted that the collective bargaining agreement, which had recently obtained final approval from USW union will extend up to September 1, 2022.

Also, ArcelorMittal USA pledged to invest over $3.1 billion over the next four years, raising the investment into its U.S. operations from earlier announced $2.5 billion. The contract summary states that the proposed investments will help the company remain profitable over the long term. Furthermore, it offers job security to hundreds of steelworkers in various company facilities spread across the country. The 4-year labor agreement with ArcelorMittal was overwhelmingly ratified by the USW union in late-November this year.

The fresh investments in U.S. steel industry will likely reduce the country’s dependence on imported steel.