The steel maker said the investment will be used to upgrade Middleton Works’ blast furnace, advanced material-handling infrastructure, and AI-powered process-control technologies.
- The blast-furnace rebuild is scheduled for completion in the first quarter of 2030.
- Cleveland-Cliffs plans to construct a cogeneration facility to capture gas and use it to generate electricity and steam for the plant.
- The project is expected to employ more than 1,500 workers at peak construction.
Shares of Cleveland-Cliffs (CLF) jumped 8% on Friday after the steel maker announced a $1 billion investment to modernize its flagship Middletown Works plant in Ohio, with the U.S. Department of Energy (DOE) expected to provide half of the funding.
The Department of Energy established a framework with Cleveland-Cliffs to finalize a revised plan for the use of a previously awarded $500 million grant.
CLF shares are on track to reverse a three straight session of losses.
Cleveland-Cliffs To Upgrade Blast Furnace
The company said the investment will be used to upgrade its blast furnace, advanced material-handling infrastructure, and AI-powered process-control technologies. The investment is expected to be deployed over four years.
Cleveland-Cliffs also plans to construct a cogeneration facility that will capture blast-furnace gas and use it to generate electricity and steam for the plant. The system is expected to improve energy efficiency, reduce dependency on externally supplied electricity, and lower operating costs.
Work is expected to begin within weeks, with the blast-furnace rebuild scheduled for completion in the first quarter of 2030.
Project Expected To Employ More Than 1,500 Workers
The project is expected to employ more than 1,500 workers at peak construction, including members of local building-trade unions, while preserving 2,300 existing jobs.
Middletown Works produces about 3 million tons of raw steel annually and is a major supplier of automotive-grade steel used in cars, trucks and SUVs.
“This investment strengthens domestic steelmaking, preserves 2,300 jobs and ensures that Middletown Works remains one of the premier steelmaking facilities in North America for decades to come,” said CEO Lourenco Goncalves.
Meanwhile, retail sentiment surrounding CLF on Stocktwits remained ‘bearish’ over the past 24 hours.
The stock has declined 15% so far this year.
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