July 22, 2024
Cleveland-Cliffs will convert its Weirton assets into an electrical machine production facility, revitalizing the region’s economy and offering a boost to a region that has been one of the world’s largest metal manufacturers for generations.
The company made the announcement early Monday morning; A news conference in Weirton is scheduled for 2 p. m. today with corporate officials, West Virginia Gov. Jim Justice, and state and local officials.
The Cleveland-Cliffs investment, according to the company, will help address the critical shortage of distribution transformers that is stifling economic expansion in the United States.
“Distribution transformers are imperative to the maintenance and expansion of the U. S. power grid. These transformers are in short supply and this shortage is stifling economic expansion across the country,” said Lourenco Goncalves, president and CEO of Cleveland- Cliffs. “The shortage will continue to be exacerbated by the widespread adoption of synthetic intelligence in virtually every sector of the economy, leading to an exponential increase in electrical energy consumption, in the United States and around the world. In other words, there will be no AI without electrical power and there will be no electrical power without transformers.
“Our vision for Weirton is to expand a one-of-a-kind center of excellence for transformer production that provides well-paying jobs for middle-class professionals and meets our nation’s electrical infrastructure needs.
Cleveland-Cliffs will transform its Half Moon warehouse in Weirton to begin production of three-phase distribution transformers used in electric power distribution systems. The total investment is $150 million, of which $50 million will be provided through the state of West Virginia to Cliffs through a forgivable loan. Cliffs expects the new plant to be operational in the first part of 2026.
The reuse of the plant will generate reemployment opportunities for six hundred USW-represented employees of the idle Weirton tin plant. The new electrical processing plant will also generate increased demand for U. S. -made GOES, produced exclusively in the United States through Cleveland-Cliffs, at its Butler Works metal factory in Butler, Pennsylvania.
“The former Weirton site offers significant growth opportunities as it has the necessary infrastructure and a highly professional, world-class workforce ready to deploy. Most importantly, Weirton is located in West Virginia, a state where legislative and executive branches operate every day so things can get into place very temporarily and efficiently. We thank Governor Justice for helping us advance this critical task and the West Virginia Governor’s Department of Economic Development for providing a. $50 million forgivable loan for our investment. “I would also like to express my gratitude to our Weirton host network and the many elected officials in the domain for their continued tenure at Cleveland-Cliffs,” Goncalves said.
“This investment in Cleveland-Cliffs will provide employment opportunities for the professional metal staff in USW Local 2911,” said USW Local 2911 President Mark Glyptis. “The new plant builds on Weirton’s proud heritage in metal manufacturing and will make our region a hub for the production of transformers needed for U. S. economic and national security from transformer production at Weirton.
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