Cleveland-Cliffs has announced a $50 million investment to establish a new electrical distribution transformer production plant in Weirton, West Virginia. The project, part of a larger $150 million capital investment, aims to address the critical shortage of three-phase distribution transformers, essential for the U.S. electric grid.

The investment will repurpose the existing Half Moon Warehouse in Weirton to produce these vital transformers, with the plant expected to begin operations in early 2026. The project is anticipated to create 600 jobs for former employees of the Weirton tinplate mill, which has been idled.

This development will also drive demand for American-made Grain Oriented Electrical Steel (GOES) from Cleveland-Cliffs' Butler Works steel mill in Pennsylvania. Additionally, the new plant will use stainless and carbon steel from other Cleveland-Cliffs facilities in Ohio, Michigan, and Indiana.

Lourenco Goncalves, Chairman, President, and CEO of Cleveland-Cliffs, emphasized the importance of transformers for maintaining and expanding the U.S. electric grid, particularly as Artificial Intelligence drives increased electricity consumption.

Governor Jim Justice and the West Virginia Department of Economic Development have supported the initiative with a $50 million forgivable loan. Mark Glyptis, President of United Steelworkers Local 2911, praised the investment for revitalizing the region and creating middle-class jobs.

U.S. Senator Sherrod Brown highlighted the project's role in revitalizing the Ohio Valley's steel industry, attributing it to efforts to correct regulatory issues affecting transformer production.

Source: clevelandcliffs.com