MIDDLETOWN, Ohio – A nearly $2 billion investment in the Cleveland-Cliffs Middletown Works could mean big business for the city.
The steel mill will receive a federal grant of up to $500 million to replace its coal-fired blast furnace with a hybrid plant that burns hydrogen and natural gas. This project is expected to create 1,200 construction jobs and dramatically reduce CO2 emissions. Cleveland-Cliff is investing $1.3 billion of its own funds in the project.
Middletown City Manager Paul Lolli said this investment will allow the city to create a tax base to meet various city needs.
“This tax base allows the city to do what cities are supposed to do. It allows us to have a strong infrastructure. This allows us to have a good public safety department,” Lolli said. “Since about 2008, public safety has taken a hit.”
He said the city employed about 98 police officers and 92 firefighters at its peak. These numbers have declined in recent years. At its lowest point, the city employed 65 officers and 64 firefighters.
Lolli said with the tax dollars they should be able to increase public safety staffing in the city.
“It's great for Middletown, especially the workers at the factory, you know, something happens at the factory, they're the first responders. Everywhere the first responders are, they're running into a house that's burning while everyone else is running out,” said Shawn Coffey, Local 1943 factory workers' union president.
Coffey is also excited about what this facility upgrade means for surrounding businesses.
“Money in your pocket is money in the community, right? People work here, spend money here, it’s beneficial all around,” he said.
Lolli said over the last 50 years, many businesses have moved out of the city.
“These paper mills no longer exist. ARMCO has still grown from a steel mill with 7,000 employees to just over 2,500 currently,” he said.
Lolli and Coffey said this investment will ensure employment for people living in the city for years to come.
“I chose Middletown Works as the location for this [hydrogen-ready] You know, it shows that the steel mill is here to stay for the next 5th, 6th and 7th generation of Middletown workers,” Lolli said.
“It gives people a sense of comfort knowing we’re going to be here for a long time. Right now we have generations of employees working here,” Coffey said.
And they will do this work in a more environmentally friendly way, Coffey said.
Lolli said construction is expected to begin in 2025 and be completed in 2029.
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