Cleveland-Cliffs (CLF) said Friday the US Department of Energy has established the framework to finalize negotiations and implementation plans for a $500 million grant to help pay for a planned $1 billion upgrade to its Middletown Works steel factory in Ohio.
The company said it will match the government funding and implement the upgrade over the next four years, starting in the coming weeks, without disrupting production.
The $1 billion total investment will be used to rebuild its blast furnace, improve how materials are moved, add computer-guided controls, and build a new power plant on the property to cut energy costs, Cleveland-Cliffs said.
Work on the furnace is planned to be finished by Q1 of 2030, and the whole project is expected to require more than 1,500 workers at peak construction, the company said.
Shares of the company were up around 8% in Friday trading.
Price: $11.60, Change: $+0.86, Percent Change: +7.96%