Gary Mayor Eddie Melton has welcomed a landmark agreement between U.S. Steel and Nippon Steel, calling it a transformative step toward renewed investment in the city’s steelmaking legacy and a victory for thousands of working families in Northwest Indiana.
In a statement issued Friday, May 23, Melton praised former President Donald Trump’s announcement affirming a new partnership between the two steel giants. The mayor said the transaction ensures steel jobs will remain on American soil and “directly impacts thousands of families in our region,” particularly in Gary, home to the largest mill in U.S. Steel’s portfolio.
“For communities like Gary who have suffered from decades of disinvestment, this is a historic moment,” Melton stated. “I fought to ensure that not one steelworker job would be lost. Today, Nippon has committed not only to maintain the current level of union jobs, but has also agreed to an increase in the number of good, well-paid steelmaking jobs in America.”
The agreement follows months of intense discussions and opposition in some corners of Washington and the labor community, especially amid growing concern over foreign ownership of U.S. strategic industries. Nippon Steel is Japan’s largest steelmaker and one of the top global producers. Its $14.1 billion bid to acquire U.S. Steel was announced in December 2023, sparking fears over job security, national security, and the preservation of labor rights.
Mayor Melton said he spent months conducting due diligence and listening to concerns from steelworkers, union leaders, and members of the Congressional Black Caucus. “I stuck to my guns even when others opposed this deal because I knew it was good for our citizens,” he said.
He credited Indiana Senator Todd Young and Representatives Bennie Thompson and Maxine Waters for their support and coordination during the negotiation process. According to the mayor, Nippon Steel has committed to honoring the existing labor agreement with United Steelworkers and will make significant investments in Gary Works—the city’s flagship mill employing roughly 4,000 workers.
Gary Works has long been the economic engine of the city, but it has also borne the brunt of deindustrialization and corporate downsizing over the last four decades. Once one of the largest integrated steel mills in the world, the plant saw steep employment declines as automation, globalization, and offshoring reshaped the American steel industry. Between 1979 and the early 2000s, thousands of jobs were lost as U.S. Steel shed costs and cut operations to remain competitive in a changing global market.
This latest announcement, however, offers a rare glimmer of resurgence. While details of the agreement continue to emerge, Mayor Melton emphasized that the transaction was shaped in part by assurances that national security concerns raised by federal officials were addressed. Nippon’s commitments, he said, “promise significant investments in Gary Works.”
The deal also marks a new chapter in a long and often turbulent history of steel production in the United States. For much of the 20th century, cities like Gary thrived because of steel. Founded in 1906 by U.S. Steel, Gary was a company town from its inception, rapidly growing into a hub of American industrial power. But starting in the 1970s, as foreign competition increased and domestic plants aged without modernization, the industry contracted. The decline devastated the economies of Rust Belt cities—including Gary—leading to population loss, tax base erosion, and chronic underinvestment.
Over the past decade, city and state leaders have worked to reverse the tide by leveraging Gary’s industrial infrastructure, strategic location near Lake Michigan, and its proximity to Chicago. The U.S. Steel-Nippon deal, Melton said, could finally anchor those revitalization efforts with long-term employment and reinvestment.
Still, the transaction has not been without controversy. The United Steelworkers union initially opposed the sale, citing fears over foreign control and the potential erosion of collective bargaining power. The Biden Administration opened a national security review under the Committee on Foreign Investment in the United States (CFIUS), which remains ongoing. However, Friday’s announcement from Trump signals a potential political shift in favor of the deal should he return to office.
For now, Mayor Melton has pledged to keep the public informed as the city learns more about the terms of the agreement. “We will continue to update the public and work with all stakeholders to ensure the best outcomes for our residents and steelmaking families,”
he said.