July 22, 2024
Cleveland-Cliffs will convert its Weirton assets into an electric boiler production plant, reviving the region’s economy and placing a strain on 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 convention in Weirton is scheduled for 2 p. m. with corporate officials, West Virginia Governor Jim Justice, and other state and local officials.
Cleveland-Cliffs’ investment, according to the company, will 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 first-of-its-kind center of excellence for transformer production that will provide well-paying, middle-class jobs for professionals and meet our country’s electric power infrastructure needs.
Cleveland-Cliffs will redevelop 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 as a Forgivable Loan. Cliffs expects the new plant to come online in the first part of 2026.
The repurposing of the plant will result in reemployment opportunities for six hundred employees represented by USW at the idled Weirton tinplate plant. The new electrical transformer plant will also generate increased demand for American-made GOES, produced exclusively in the U. S. through Cleveland-Cliffs. , at its Butler Works metal factory in Butler, Pennsylvania.
“The former Weirton site offers significant expansion opportunities, with the mandatory infrastructure in place and a highly professional, world-class workforce in a position to be deployed. Most importantly, Weirton is located in West Virginia, a state where the legislative and executive branches prove every day that things can work very temporarily and efficiently. We thank Governor Justice for helping us carry out this critical task and the West Virginia Governor’s Department of Economic Development for offering a $50 million forgivable loan for our investment. I would also like to express my gratitude to our Weirton host network and the domain’s many elected officials for their continuity in Cleveland-Cliffs,” Goncalves said.
“This investment in Cleveland-Cliffs will provide employment opportunities for professional metal personnel at USW Local 2911,” said USW Local 2911 President Mark Glyptis. “The new plant builds on Weirton’s proud heritage in metal fabrication and will make our region a hub for the production of the transformers needed for U. S. economic and national security. “UU. de transformer production in Weirton.
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