News

Jun 13, 2023

Why leave, Budzinski asks US Steel about Granite City

U.S. Rep. Nikki Budzinski, D-Springfield, on Wednesday asked why U.S. Steel

U.S. Rep. Nikki Budzinski, D-Springfield, on Wednesday asked why U.S. Steel Corp. is planning to sell two Granite City Works furnaces and possibly eliminate 1,000 jobs.

WASHINGTON — Officials with U.S. Steel on Wednesday were questioned about their plans for the Granite City facility.

During the Congressional Steel Caucus’ annual "State of Steel" meeting, U.S. Rep. Nikki Budzinski, D-Springfield, asked Richard Fruehauf, Senior Vice President, Chief Strategy & Sustainability Officer, for U.S. Steel Corp., why it was planning to sell two Granite City Works furnaces to SunCoke, a raw materials processing company that has a footprint adjacent to the steel mill.

The planned sale was announced last year. SunCoke has offered to repurpose the current furnaces to create a production facility for pig iron, a material that would be used for electric arc furnaces. Budzinski urged U.S. Steel to continue its Granite City furnaces.

"Just the other week, I had the opportunity to meet with a constituent whose father and grandfather both worked at the mill," she said. "That's how he was put through college, and he then went on to start his own healthcare business which is profitable and now provides for his own family. "And yet, despite years of good fortune and record profits for U.S. Steel, you’re ready to pack up and leave — leaving hundreds of families behind," Budzinski said. "The proposed sale to SunCoke is forecasted to cut 1,000 jobs in the community of Granite City — which will be a death blow to an industrial community like Granite City.

"Why leave?" she asked. "Why would U.S. Steel choose to abandon high-skilled labor? Why would U.S. Steel be uninterested in pursuing the litany of tax credits?" She said SJ 18, a lightweight hard steel used in automotive production, is only made in Granite City.

"There are capabilities of high-grade production at Granite City no other integrated facility can match in the United States," she said. "So how could the answer be to get rid of these blast furnaces in Granite City?"

Budzinski said U.S. Steel has decided moving its operations to "Right to Work" states to help its profit margins.

"Cheaper labor, with fewer protections, means an exit strategy out of the industrial Midwest," she said. "And I have to say, quite frankly, Granite City is not alone in this trend. We shouldn't stand for this."

In his testimony, Fruehauf said U.S. Steel is facing a "very real threat" from global steel overcapacity and the actions of foreign governments and producers that feed the overcapacity.

"Our U.S. industry is investing to grow stronger, to create jobs and to continue to meet our nation's needs," he said.