U.S. Steel to cut jobs, end steelmaking operations at Granite City Works as it looks to bolster iron ore supplies | Northwest Indiana Business Headlines | nwitimes.com

2022-09-02 20:41:55 By : Ms. lissa liao

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The basic oxygen furnace at the U.S. Steel Granite City Works facility in Granite City, Ill. is shown in 2018. 

Processed taconite iron ore pellets are shown.

U.S. Steel is planning to slash steelmaking jobs in Illinois as it looks to expand its domestic iron ore supply by investing in a pellet facility in Minnesota and reaching a deal with SunCoke Energy to make pig iron at blast furnaces at Granite City Works near St. Louis.

The company is looking to reduce employment from about 1,500 to about 550 at the Illinois steel mill because of the shift in strategy to focus more on iron ore production and electric arc furnaces, or EAFs.

"U.S. Steel has established a trend in recent years of shutting down operations, as it has done at the Great Lakes facility in Detroit, Lone Star Steel in Texas, tubular operations in Ohio, and the company abandoned a previously announced major capital improvement project at the Mon Valley Works and announced the closing of its West Coast operations at UPI in California," United Steelworkers Union International President Thomas Conway said. "The company continues to invest heavily in its non-union operations at Big River Steel in Arkansas, and management continues to point to their transition to EAF-produced steel as the pathway to success while they shutter operations."

U.S. Steel spokesperson Amanda Malkowski said it would be the end of the steelmaking operations at Granite City Works as both remaining blast furnaces would be converted to pig iron production. All that would remain would be finishing lines, supplied by another U.S. Steel mill, potentially Gary Works.

Displaced workers would be able to apply for a job at SunCoke or transfer to another U.S. Steel facility, Malkowski said. Those who are not placed somewhere will get severance packages.

The Pittsburgh-based steelmaker, one of the largest industrial concerns in the Calumet Region, recently announced it would invest $60 million in a pig iron caster at Gary Works that would produce up to 500,000 tons of pig iron for Big River Steel in Arkansas. That operation should go online next year, contributing $30 million a year to run-rate enterprise EBITDA and a return rate of more than 30%.

This fall, the steelmaker will build a DR-grate pellet facility at either its Keetac or Minntac iron ore mine in Minnesota. One of the two plants will start making DR-grade pellets for electric arc furnaces as well as blast furnace-grade pellets for blast finances like those at Gary Works.

The expected investment is about $150 million. U.S. Steel will have the option to sell the pellets to third-party suppliers or feed them to a direct reduced iron or hot briquetted facility of its own in the future.

It immediately plans to use the pellets for a new product line.

"Our conviction remains that steel mined, melted, and made in America is vital to our national and economic security," U.S. Steel President and CEO David Burritt said. "We are strategically investing in our raw materials that will feed the advanced steel mills of today and tomorrow, making us increasingly self-sufficient. It’s another way that we’re supporting domestic manufacturing, simplifying complex global supply chains, addressing the sustainability demands of our customers, and ultimately creating profitable steel solutions for people and the planet."

U.S. Steel has signed an agreement that would allow SunCoke to acquire the two blast furnaces at Granite City Works in Illinois. The company plans to build a 2 million ton granulated pig iron production facility, supplying U.S. Steel with 100% of the pig iron it produces for 10 years.

The project would take about two years to build. U.S. Steel would use the pig iron to supply its fleet of electric arc furnaces with iron ore from its own mines, realizing a significant cost advantage.

It would also result in the loss of about 1,000 steelworker jobs mostly represented by the USW.

"The USW and U.S. Steel concluded a successful startup of an EAF operation in Birmingham, Alabama, at the Fairfield Works, and that's where the company should have continued to place additional EAF investments," Conway said. "Instead, they chose to double down their investment in their Arkansas facility," Conway said. "In its announcement regarding Granite City's future, the company callously failed to mention a word about the massive job loss or impact the decision will have on a skilled and loyal workforce, their families or their community."

The USW said it was just the latest in a string of closures, including the indefinitely idled East Chicago Tin Mill U.S. Steel acquired from National Steel.

"It is another tale in a long string of betrayals by the company, which now has permanently closed nearly two thirds of the assets it acquired from National Steel along with other acquisitions," Conway said. "The summer is coming and bringing with it the termination of the labor agreement between the parties. We will undoubtedly be talking about investment in our plants. The company should prepare itself for those discussions. We understand the vital importance of investment in our USW plants and the obligations to our members and their communities, even if the management at U.S. Steel doesn't. We have no intention of becoming the primary pig iron suppliers to their non-union operations."

Freshly baked sweets and homemade ice cream are coming to Dyer, that's just the way the proverbial cookie crumbles.

Crumbl Cookies, a fast-growing chain of cookie shops, will open its first Northwest Indiana location on July 1.

It will celebrate with a grand opening from 8 a.m. to 10 p.m. where it will give away swag to its customers, said Derek Hincks with Crumbl.

Utah-based Crumbl moved into the 1,350-square-foot space formerly occupied by Game Stop in the shopping center anchored by Jewel-Osco at the corner of U.S. 30 and Calumet Ave.

Crumbl offers more than 130 flavors of cookies, including milk chocolate chip, blueberry cheesecake, rocky road, honey bun, galaxy brownie, cookie butter ice cream, brownie fudge and cookie dough crunch. It frequently rotates flavors and serves up cookies either warm or chilled, depending on the flavor.

The cookies come in four-pack, six-pack and 12-pack boxes that are available for takeout or delivery. The distinctive boxes are oblong and pink to be as Instagrammable as possible.

Crumbl also has half-pints of housemade ice cream in flavors like vanilla bean, cookie dough crunch and peanut butter brittle.

It was founded in 2017 by cousins Sawyer Hemsley and Jason McGowan and has since experienced breakneck growth. It now has 300 stores in 36 states, including in Fishers, Indianapolis, Greenwood, Carmel, Bloomington and Evansville in Indiana.

For more information, visit crumblcookies.com, email In.dyer@crumbl.com or call 219-440-2063.

Cycle Gear is revving up to come to Southlake Mall in Hobart.

The California-based retailer sells gears, parts and accessories to motorcyclists. The company recently signed a lease with the super-regional mall at U.S. 30 and Mississippi Street.

A spokesperson said it will open later this year, likely late in the fall, and be located next to Buffalo Wilds Winds and Red Robin outside the enclosed mall.

Founded in 1974, Cycle Gear now has 160 stores across the United States. It caters to motorcycle enthusiasts with apparel, parts and performance-oriented riding gear. It stocks a wide selection of original equipment manufacturers and aftermarket products for a variety of bikes.

A new stretching studio is coming to St. John.

StretchLab bills itself as a "unique wellness concept offering customized assisted-stretch sessions in a comfortable group setting." A trained flexologist helps people work out a customized stretch routine to remedy pain or tightness or just improve their flexibility and range of motion.

The fast-growing fitness concept is owned by parent company Xponential Fitness, a California-based company that operates Pilates, cycling, rowing, dance, running, boxing, functional training and yoga studios all around the country.

Construction is underway on the new StretchLab by La Quesadilla in Shops of Ravenwood Square on U.S. 41.

“StretchLab is a really unique concept and offers a service that doesn’t exist around here," said Brett McDermott with Crown Point-based Latitude Commercial, which represented the tenant in the transaction. "I’m excited for the community to try it out as I know they will embrace it after their first session.”

StretchLab aims to open in the next few months.

Sephora at Kohl's celebrated its grand opening at the Southlake Mall Wednesday.

The store-within-a-store is selling beauty products at 1601 Southlake Mall in Hobart. The 2,500-square-foot store offers premier makeup, fragrance, skincare, and hair brands.

Beauty advisors offer help and consultations in the "fully immersive beauty experience" in which customers can try out a rotating selection of new, trending or emerging products.

It's designed to resemble a free-standing Sephora store. It carries brands like Murad, Clarins, Jack Black, Living Proof, Versace, Voluspa, Rare Beauty, NARS, Charlotte Tilbury, Kiehl’s, Giorgio Armani, Olaplex, Clinique and Sephora Collection.

Wisconsin-based Kohl's is in the process of opening 400 new Sephora at Kohl’s shops nationwide and says it is on track to open 850 total shops by 2023.

Umi Sushi and Lounge recently underwent a complete renovation in downtown Crown Point.

Theo's Dining Group overhauled the urbane sushi lounge at 109 W. Joliet St. It sits on the second floor above Prime Steakhouse with window views overlooking the historic Old Courthouse Square.

Owner Peter Klideris said it has a more electric feel with bright colors and neon based on pictures and videos of friends visiting Asian cities.

"It's reopened and revamped with new flooring, a new bar, new tables, new chairs and new glassware," he said. "It kept creative sushi rolls like the Godzilla roll with vodka that's set aflame right at your table to partially cook it so it has a warm flavor. It has shaved ribeye steak from Prime right on top of the roll, and it cooks it a little bit. We have adult beverages with a scented bubble on top that's popped tableside. We have a flavor blaster gun that pops bubbles tableside right on top of the cocktail."

The menu includes a variety of fresh fish and sticky rice marinated in oranges, limes, lemons and non-alcoholic rice wine. Top sellers include the Rock Lobster and the Mamacita that features yellow tail tuna, asparagus, cilantro, jalapeño, mango, cucumber, spicy mayo, eel sauce and spicy crunch.

The dining room now has a more chic flair.

"Everybody's been loving it," Kilderis said. "We've never been busier. Patrons were super-excited to go from the old to the new look."

Umi is looking at adding new menu items in the future, including noodles and Wagyu or Kobe steak.

"We've been in downtown Crown Point for years and both restaurants were coming due for renovations," he said. "We felt we had to not because these new restaurants are coming to town but to be fair to our guests and provide a more classy experience."

The more, the merrier on the Old Courthouse Square, he said.

"We encourage different restaurant concepts to come to the square," he said. "So long as we're all doing something different to distinguish it, it makes downtown more of a dining destination. People come to try one place and then might come back to come to Prime or Umi."

Theo's Dining Group sold the Chop House On Wicker to the owners of the neighboring Shrine of Christ's Passion, which razed the former Dick's Restaurant at 10808 Wicker Ave. in St. John.

"The Shrine made an offer we couldn't refuse," Owner Peter Klideris said. "I don't know what they plan to do but it will be great for the community. So many people go to the Shrine. As the owner of Avgo, I'm happy to have them in the community."

St. John Town Manager Joseph Wiszowaty said redevelopment plans were in the works. He said it would "definitely be a commercial development."

"We are working with the Schillings on that, however, nothing has been finalized," he said. "But definitely stay tuned."

White Sox fans are very familiar with the Bridgeport Restaurant at 3500 S Halsted St. in Chicago.

The historic diner with the uber-vintage facade has been in business for more than 60 years. It's slated to close at the end of June. 

The owners are looking for an entrepreneur who wants to take over the restaurant. They're looking for a tenant to lease it for $40 per square foot for at least a three-year term.

Rainbow Cone, a staple in Chicago's far South Side Beverly neighborhood for more than 95 years, announced its summer locations.

It will serve its famous ice cream at Lincoln Park Zoo, Shedd Aquarium, Navy Pier and roaming trucks this summer. Rainbow Cone, which has the slogan "life's too short for just one flavor," also opened a stand at Guaranteed Rate Field this season.

For more information, visit https://www.rainbowcone.com/truck-finder/.

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Joseph S. Pete is a Lisagor Award-winning business reporter who covers steel, industry, unions, the ports, retail, banking and more. The Indiana University grad has been with The Times since 2013 and blogs about craft beer, culture and the military.

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The basic oxygen furnace at the U.S. Steel Granite City Works facility in Granite City, Ill. is shown in 2018. 

Processed taconite iron ore pellets are shown.

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