U.S. Steel to Restart Granite City Furnace as Demand Strengthens
The move by the newly acquired subsidiary of Nippon Steel signals a significant reversal and a vote of confidence in the U.S. industrial economy.
United States Steel Corp., now operating as a subsidiary of Japan's Nippon Steel, announced it is restarting a key blast furnace at its Granite City Works facility in Illinois, a direct response to strengthening customer demand for flat-rolled steel.
The decision to fire up Blast Furnace B marks a significant operational pivot and a vote of confidence in the U.S. industrial sector. It comes just months after U.S. Steel’s controversial acquisition and subsequent delisting from the New York Stock Exchange in June 2025, shifting the focus of its corporate actions from shareholder value to industrial strategy.
The move is a notable reversal of the company's previous plans. Earlier this year, there was widespread concern that the Illinois plant, a major regional employer, would cease slab production indefinitely. That decision has now been overturned, a development that secures the facility's immediate future. According to reports from the Associated Press, the plant's fate has been politically sensitive, with former President Donald Trump reportedly intervening to prevent its closure prior to the acquisition.
U.S. Steel’s action provides a positive data point amid an otherwise mixed economic backdrop. While the company cited a clear rise in its order book, broader indicators for the U.S. manufacturing sector have been less decisive. Recent months have seen fluctuating durable goods orders and a manufacturing PMI that has hovered in contraction territory. Data shows that while residential building has been a bright spot, spending on manufacturing-related construction has declined.
This contrast suggests the demand U.S. Steel is experiencing may be concentrated in specific sub-sectors that rely heavily on the kind of high-grade steel produced at Granite City, such as the automotive and appliance industries. The restart is intended to provide a steady supply of steel slabs to support the company’s order book well into 2026.
For the nearly 1,000 workers at the plant, the news provides a welcome dose of stability. Local news outlet KSDK confirmed that the company had found a way to continue operations, a solution lauded by union leaders. Mike Millsap, a director for the United Steelworkers, had previously expressed optimism, stating, "There is a way to run Granite City, start these furnaces back up."
As a private subsidiary, U.S. Steel’s operational decisions are no longer scrutinized through the lens of daily stock market performance. Instead, the restart of the Granite City furnace serves as a more direct barometer of real-world industrial activity—a tangible investment in production capacity to meet concrete demand. The move will be closely watched as an indicator of resilience in America’s industrial core under the new ownership of one of the world's largest steelmakers.