U.S. Steel Corp. and SunCoke Energy Inc. broke ground Monday on a $570 million joint capital project at the steel company's Granite City Works in Granite City, Ill.
Pittsburgh-based U.S. Steel (NYSE: X) will provide $280 million in the joint capital investment program, according to a release.
As part of the project, SunCoke's subsidiary, Gateway Energy and Coke Co., will construct, own and operate heat recovery coke ovens with an annual coke-making capability of 650,000 tons. The project, announced in 2006, also includes the construction of a cogeneration facility to be owned and operated by U.S. Steel.
Construction of the facilities is expected to take 18 months and call for about 900 temporary construction jobs at its peak, according to the release. The facilities are expected to create 88 full-time jobs when they're completed.
"Our more than 2,000 dedicated employees and their predecessors have made this facility a key contributor to the local economy for more than 100 years, while supplying high-quality flat-rolled carbon sheet steel to the construction, container, pipe and tube, service center, and electrical industries," John Goodish, U.S. Steel executive vice president and chief operating officer said in a statement. The new investment demonstrates the company's environmental stewardship and highlights its commitment to Granite City and the surrounding communities, he said.
The new coke facility will use SunCoke Energy's low-emission technology to process coal into coke, a key ingredient in steelmaking. The energy generated in the coke-making process will be used in a cogeneration plant that will provide electricity to Granite City Works.
Among those participating in the groundbreaking ceremony were Goodish; Illinois Gov. Rod Blagojevich; U.S. Rep. John Shimkus; Illinois Reps. Tom Holbrook, Jay Hoffman, and Daniel Beiser; Illinois Sen. William Haine; Ed Hagnauer, mayor of Granite City; Mike Thomson, executive vice president and chief operating officer of SunCoke Energy; and Sharon Owen, general manager of U.S. Steel Granite City Works.
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