Cleveland-Cliffs (CLF) Status Update summary

Strategic Investment and Job Creation

• Announced a $150 million investment to establish a new state-of-the-art distribution transformer plant in Weirton, West Virginia, creating 600 union jobs for skilled steelworkers, with $50 million provided as a forgivable loan by the state.

• The plant repurposes a previously idled tinplate facility, specifically the Half Moon Warehouse, to produce three-phase distribution transformers and address the acute national shortage.

• The facility is expected to be operational in the first half of 2026, aligning with new U.S. Department of Energy efficiency standards.

• The project will create reemployment opportunities for 600 USW-represented workers from the idled Weirton tinplate mill.

• Increased demand for American-made Grain Oriented Electrical Steel (GOES) will support job growth at the Butler Works mill in Pennsylvania and other Cliffs steel plants in Ohio, Michigan, and Indiana.

National Energy and Supply Chain Impact

• The new facility addresses a critical gap in the U.S. electric grid, reducing reliance on imported transformers and supporting grid resilience.

• Increased electricity demand, especially from AI and technology growth, underscores the urgency for domestic transformer production.

• The initiative is positioned as a catalyst for a broader manufacturing renaissance in the U.S.

• The project is positioned as a center of excellence for transformer manufacturing, providing middle-class jobs and supporting U.S. infrastructure needs.

Community and Stakeholder Engagement

• Strong collaboration between management and United Steelworkers Local 2911 is highlighted as a model for labor-business relations.

• The project restores good-paying, unionized jobs to a region hit hard by previous plant closures and trade policy impacts.

• Local and national leaders, including Governor Jim Justice, senators, and state officials, express bipartisan support for the project and its economic significance.

• United Steelworkers Local 2911 leadership emphasized the project's role in revitalizing Weirton's manufacturing legacy and supporting national security.