Cleveland-Cliffs Inc. (NYSE:CLF) stock rose Friday after the steelmaker announced a $1 billion investment in its Middletown Works facility in Ohio. The project will receive $500 million in support from the U.S. Department of Energy.
The DOE established a framework for Cleveland-Cliffs to finalize negotiations and implementation plans for the project. The funding rescopes a previously awarded $500 million DOE grant. The company and the agency will each fund half of the investment.
$1 Billion Steel Plant Upgrade
Cleveland-Cliffs plans to deploy the investment over four years while maintaining uninterrupted steel production.
The project includes upgrades to the plant’s blast furnace and material-handling infrastructure. It will also add artificial intelligence-enabled process control technology.
In addition, Cleveland-Cliffs plans to build a cogeneration facility. The system will capture blast furnace gas and use it to generate electricity and steam for the plant. The company expects the technology to improve energy efficiency and reduce operating costs.
Work is expected to begin in the coming weeks. The company plans to complete the blast furnace rebuild in the first quarter of 2030.
Investment Supports Jobs And Auto Steel Production
Middletown Works produces about 3 million tons of raw steel annually. The facility specializes in automotive-grade steel used in exposed parts of cars, trucks and SUVs.
The project is expected to preserve 2,300 jobs. At peak construction, it will also employ more than 1,500 workers, including local union building trades.
CEO Lourenco Goncalves said the investment will improve the plant’s efficiency and competitiveness while strengthening domestic steel production.
Vice President JD Vance and Energy Secretary Chris Wright are scheduled to visit Middletown Works on Friday to highlight the investment.
Cleveland-Cliffs Price Action
CLF Price Action: Cleveland-Cliffs shares were up 8.43% at $11.64 at the time of publication on Friday, according to Benzinga Pro data.
Photo via Shutterstock
