U.S. Steel to End Slab Processing at Granite City

U.S. Steel to stop slab processing at Granite City; jobs protected through 2027

U.S. Steel will stop processing steel slabs at its Granite City Works in Illinois, a move expected to be completed by November 2025. Company leaders say about 800 workers at the plant will not face layoffs or pay cuts tied to this decision and will remain on site to keep the facility ready in case operations resume.

Key details first

The decision follows the recent finalization of a nearly $15 billion buyout involving Nippon Steel and the U.S. government-level review tied to that deal. Under a national security agreement connected to that process, job protections at the Granite City facility are in place through 2027. U.S. Steel says it will shift greater focus to its Mon Valley Works in Pennsylvania and Gary Works in Indiana instead of continuing slab processing at Granite City.

What will happen on the ground

Plant staff will move from slab production duties to maintaining the site and equipment. The company describes this work as keeping the plant operational and ready to restart if future conditions justify returning to production. The United Steelworkers union has told members that the company is preparing a severance package as part of the transition, but has reiterated that no layoffs will occur under the current plan.

Why this matters

Granite City Works has not produced raw steel since 2023, when its last operating blast furnace was idled. The other blast furnace had been taken offline in 2019. Even without raw steelmaking, the plant has continued to process steel slabs used in construction, container, pipe, and automotive manufacturing. When the plant ran at full blast in earlier years, it employed roughly 2,000 workers, so the reduced hands-on workforce and the new maintenance role mark a significant shift in local employment and operations.

Union and political context

The United Steelworkers union opposed the Nippon Steel acquisition of U.S. Steel at the national level, though some local union chapters had been more supportive. The union’s local district director in Illinois is waiting for formal notification from U.S. Steel about specific details for Granite City. A local congresswoman has expressed concern about how the decision could affect jobs and attributes the change in part to policies from the current administration.

Deal conditions and oversight

The Nippon Steel acquisition moved through heightened scrutiny over national security and competition issues. As part of the oversight, U.S. Steel was placed under a provision sometimes called a golden share, which gives the federal government a voice on certain decisions about domestic steel output and competitive behavior. The broader agreement between Nippon Steel and U.S. Steel included promises for continued investment in U.S. Steel facilities across the country.

Looking ahead

With slab processing slated to end in late 2025, the next two years will be a period of maintenance, planning, and potential retooling. The protected workforce is expected to handle preservation and upkeep tasks. If market conditions or strategic decisions change, maintaining the plant in a ready state could make it easier to resume slab processing later on.

What is not yet settled

The company is developing a severance package for some employees, though the union has stressed there will be no immediate layoffs tied to the announcement. The timing and specifics of any long-term workforce changes beyond 2027 remain unclear, pending future business decisions, regulatory steps, or changes in ownership strategy.

Key facts at a glance