Nippon Steel to Reline Blast Furnace at U.S. Steel's Gary Works

The $350 million project will take 100 days and aims to improve energy efficiency and reduce emissions.

Published on Feb. 17, 2026

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U.S. Steel's Gary Works facility in Indiana will undergo a $350 million reline of its largest blast furnace, #14, through an investment by Nippon Steel. The project is set to start in May and be completed by August, with the goal of building a more energy-efficient and productive furnace that can help reduce carbon dioxide emissions. However, some local advocates are pushing for the company to instead transition to newer, greener direct reduction technology.

Why it matters

The reline of the blast furnace is a significant investment in the future of steelmaking at the Gary Works facility, which has been a major economic driver in the region for over a century. While the company touts the environmental benefits of the project, some community groups argue that Nippon Steel should be investing more in direct reduction technology, which they claim is a more sustainable long-term solution for the industry.

The details

The reline of blast furnace #14, the largest of four at the Gary Works facility, will cost $350 million and take 100 days to complete. U.S. Steel says it plans to work with Nippon Steel to implement technologies that will improve the furnace's productivity and energy efficiency, with the goal of reducing carbon dioxide emissions. However, local advocacy group Gary Advocates for Responsible Development (GARD) has voiced concerns, arguing that the company should instead invest in direct reduction furnaces, which they claim are more efficient and environmentally friendly than traditional blast furnaces.

  • The reline project is scheduled to begin in May 2026 and be completed by August 2026.
  • In December 2025, the U.S. Steel Board of Directors approved the $350 million funding for the reline project.
  • In August 2024, Nippon Steel first announced plans to invest about $300 million in the Gary Works facility to update the blast furnace.
  • In December 2023, Nippon Steel announced plans to acquire U.S. Steel for $14.9 billion, though the deal was later blocked by the U.S. government.

The players

U.S. Steel

A major American steel producer that operates the Gary Works facility in Indiana.

Nippon Steel

A Japanese steel company that is investing heavily in U.S. Steel's Gary Works facility, including the $350 million blast furnace reline project.

Gary Advocates for Responsible Development (GARD)

A local advocacy group that has voiced concerns about the blast furnace reline project, arguing that Nippon Steel should instead invest in newer, greener direct reduction technology.

Carolyn McCrady

A member of the Gary Advocates for Responsible Development group who has continued to voice concerns about the blast furnace reline and call for investment in direct reduction technology.

Ariana Criste

A representative from Industrious Labs, an organization that has raised concerns about the persistent pollution conditions in Northwest Indiana due to coal-based steelmaking.

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What they’re saying

“GARD believes that a reline of the #14 blast furnace could be a first step in the transition to substantial modernization investments, ultimately replacing coal-based blast furnaces with more modern and efficient technologies that will ensure the mill's longevity, increase its efficiency, preserve jobs and reduce pollution.”

— Carolyn McCrady, GARD member (Chicago Tribune)

“This spring, Nippon Steel will start construction on a blast furnace reline that keeps Northwest Indiana on coal-based steel for another generation, even as the company invests billions in cleaner steelmaking elsewhere. Hoosiers recognize a familiar pattern: long-term decisions about their communities made far from the people who live with the impacts.”

— Ariana Criste, Industrious Labs representative (Chicago Tribune)

What’s next

The judge in the case will decide on Tuesday whether or not to allow Walker Reed Quinn out on bail.

The takeaway

This project highlights the ongoing tensions between traditional steelmaking methods and the push for more sustainable, environmentally-friendly technologies in the industry. While U.S. Steel and Nippon Steel argue the reline will improve efficiency and reduce emissions, local advocates believe the company should be investing more in newer direct reduction furnaces that could provide a longer-term solution for the Gary Works facility and the surrounding community.