Weirton hears from an existing manufacturer.
Cleveland-Cliffs Inc. announced today that it will identify a new power distribution transformer production facility in Weirton, breathing new life into a site that was previously unused.
An announcement from Cleveland-Cliffs says that direct investment in Weirton will address the critical shortage of distribution transformers that is stifling economic expansion in the United States.
“Today’s announcement is news to Cleveland-Cliffs, the United Steelworkers, the rest of the people of Weirton, and all of West Virginia,” Sen. Joe Manchin, IW. Va. , said in a press release.
“Distribution transformers are undoubtedly critical parts of our nation’s electric grid and this assignment is an excellent opportunity to position our state as a global leader in their production while also rehiring West Virginia’s hardworking workforce who lost their jobs earlier this year. I am grateful to everyone who has worked tirelessly to find a solution for this and I am thrilled to see West Virginia continue to play a critical role in our strength and production industries. “
The West Virginia Economic Development Authority is scheduled to hold a special meeting today at 11 a. m. m. to authorize up to $50 million for an allocation in Hancock County.
Lourenco Goncalves, chief of Cleveland-Cliffs, will host a press convention with West Virginia Gov. Jim Justice and other elected officials in Weirton. The Justice Department, at a press conference last week, outlined an upcoming announcement in terms of economic development.
“The former Weirton site offers significant growth opportunities with the necessary infrastructure and a highly professional, world-class workforce ready to deploy. Most importantly, Weirton is located in West Virginia, a state where the legislative and executive branches “The branches operate every day so that things can happen very temporarily and efficiently,” Gonçalves said today in a statement about the announcement.
The court referred last week to an announcement.
“Okay, on Monday we will have a big economic progression announcement. You know, I hope you’ll certainly stay tuned for everything that’s going on there,” Justice said, referring to his role in chairing the upcoming State Economic Development Authority assembly.
“Great day on Monday. Stay tuned: more news is coming to West Virginia.
The financial incentive program comes with what the state calls a “high-impact progression award. ” State code specifies that the governor has requested, in writing, that the allocation be approved through the authority for $50 million or more, that the company making the allocation will privately invest $50 million or more, and that the allocation meets or exceeds a state loan. . -for work.
The announcement in Weirton will highlight Cleveland-Cliffs’ investment in repurposing its Half Moon warehouse in Weirton to begin production of three-phase distribution transformers used in electric power distribution systems. Cliffs expects the new plant to come online in the first part of 2026.
The U. S. Department of Energy’s recently published power criteria for distribution transformers include the long-term use of highly effective, American-made grain-oriented electrical metal (GOES), which which offers a greater chance for investment in Weirton to prosper.
The total capital investment is $150 million, one-third of which is provided to Cliffs through the state of West Virginia in a forgivable loan.
Weirton has a storied reputation as a metal town, but the industry has fallen on hard times. Weirton Steel Corp. was once one of the world’s largest tinplate brands. The metal company filed for bankruptcy and went through several ownership adjustments and consolidations. In 2020, the plant was part of the Cleveland-Cliffs organization; however, Cleveland Cliffs announced last February that it would close the plant due to foreign industry conditions.
Last spring, a job fair for Cleveland-Cliffs’ 900 employees included opportunities with brands like Form Energy, the Weirton battery plant and Nucor Steel.
Now, the new investment will result in reemployment opportunities for six hundred employees represented through the United Steel Workers at the indefinitely idled Weirton Tin plant.
“This investment through Cleveland-Cliffs will provide employment opportunities for professional steelworkers and the United Steelworkers Local 2911 worker. The new plant builds on Weirton’s proud metal production heritage and will make our region a hub for the production of the transformers needed for the metal industry. economic and national security of the United States,” said Mark Glyptis, president of USW Local 2911.
I thank Lourenco Goncalves for remaining committed to this network and Governor Justice for the strength of the State of West Virginia. Finally, I reaffirm USW Local 2911’s commitment to the good fortune and long-term expansion of transformer production in Weirton.
The new electrical transformer plant will also generate increased demand for United States-made products, produced exclusively in the United States through Cleveland-Cliffs, at its Butler Works metal factory in Butler, Pennsylvania.
In addition to Cliffs’ GOES, the new processing plant in West Virginia will also consume stainless metal and carbon metal produced through Cliffs at several of its metal generators in Ohio, Michigan and Indiana.
“Distribution transformers are critical to the maintenance and expansion of the U. S. power grid. “U. S. These transformers are scarce and this shortage is stifling economic expansion across the country. The shortage will continue to be exacerbated by the widespread adoption of synthetic intelligence in virtually every country. sector of the economy, leading to an exponential increase in electricity consumption, whether in the U. S. or in the U. S. , or in the U. S. “We are committed to the U. S. and around the world,” said Goncalves, president and CEO of Cleveland-Cliffs.
“In other words, there will be no AI without electrical power, and there will be no electric power without transformers. Our vision for Weirton is to expand a first-of-its-kind center of excellence for transformer production that will provide well-paid middle-class jobs for professionals and meet our country’s electrical infrastructure needs. “
Last April, Cleveland-Cliffs officials hinted that the disused tin plant could be converted into a plant that would produce metal for transformers on the power grid.
Goncalves, in a discussion about the effects of the first quarter with the Pittsburgh Business Times at the time, claimed that the company was in talks to remodel the Weirton plant.
Glyptis later told MetroNews that the discussions had dragged on for several weeks. Glyptis is positive, although he acknowledges at the time that there is no agreement.
“These (transformers) are desperately needed. The country can only meet approximately a portion of its needs,” Glyptis said this spring. “Discussions are underway. It’s exciting.