GRANITE CITY — U.S. Steel announced Tuesday, Sept. 9, 2025, it will cease processing steel slabs at its Granite City Works plant in Illinois by November 2025, shifting operations to other facilities following the recent $15 billion acquisition by Japanese company Nippon Steel.
The decision comes three months after Nippon Steel finalized its purchase of the iconic American steelmaker. U.S. Steel said it will focus on processing raw steel at its Mon Valley Works in Pennsylvania and Gary Works in Indiana.
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Despite ending slab processing at Granite City, the company stated it will not lay off any of the roughly 800 workers at the plant or reduce their pay. Employees will maintain the facility to keep it operational in case circumstances change.
Granite City Mayor Michael C. Parkinson has expressed frustration over the lack of clear investment plans for the plant, which reopened in 2018 after President Donald Trump’s visit.
The plant had ceased raw steel production in 2023 after idling its last blast furnace; the other was idled in 2019. Parkinson highlighted deteriorating coke ovens and layoffs affecting workers and urged Trump in a direct letter to secure investment and restore jobs.
In a recent letter to President Donald Trump's office, Mayor Parkinson wrote, “I cannot seem to get any answers concerning the current deal you have brokered with Nippon Steel and how that will benefit the laid-off workers here in our city.”
He also noted the deal’s benefits to Mon Valley near Pittsburgh but said, “I have yet to hear one word spoken by anyone as to what investment will be made here in Granite City, Illinois, and how many of my workers will be brought back to work.”
The acquisition included a national security agreement between former President Trump and Nippon Steel, guaranteeing that Granite City workers will keep their jobs at least until 2027. The federal government also holds a “golden share” provision, allowing it to appoint a board member and influence company decisions affecting domestic steel production.
The United Steelworkers Local 1899 called the announcement a blow to workers.
After October, the Granite City plant will no longer receive any slabs from sister plants that currently run through finishing mills, and the future does not look optimistic, the union said in a statement.
In another statement, the United Steelworkers district director in Illinois, Mike Millsap, said it had yet to receive anything in writing from U.S. Steel about its plan for Granite City Works.
“As we continue to push U.S. Steel for details on how this impacts our members, we intend to hold Nippon accountable to the promises it made over the past year and a half to secure its deal,” Millsap said.
The plant’s future remains uncertain amid questions about a potential sale.
