MIDDLETOWN, Ohio — A nearly $2 billion investment in the Cleveland-Cliffs Middletown plant could mean big business for the city.
The steel mill will receive up to $500 million in federal funding to replace its coal-burning blast furnace with a hybrid unit that burns hydrogen and natural gas. The project is expected to create 1,200 construction jobs and dramatically reduce carbon emissions. Cleveland-Cliffs is investing $1.3 billion of its own money into the project.
Middletown City Manager Paul Lori said the investment will allow the city to build a tax base to fund a variety of city needs.
“Having this tax base allows cities to do what cities are supposed to do. It allows us to build strong infrastructure. It allows us to have a great public safety department. You can have it,” Lori said. “Since around 2008, public safety has been suffering.”
At its peak, the city employed about 98 police officers and 92 firefighters, he said. In recent years, their numbers have decreased. The city employed at least 65 police officers and 64 firefighters.
Lori said the tax money could be used to increase the city's public safety personnel.
“It's great for Middletown, and I mean especially the factory workers. When something happens inside the factory, they're the first responders. First responders everywhere are the ones who help other people. They're running through a house on fire as they flee,” said Sean Coffey, president of Local 1943's factory union.
Coffey is also excited about what the plant upgrades will mean for surrounding businesses.
“The money in your pocket is community money, right? People work here, they spend money here, and it's beneficial in every way,” he said.
Rory said many businesses have moved out of the city over the past 50 years.
“That paper mill is gone. ARMCO has grown from a steel mill with 7,000 employees to a little over 2,500 today,” he said.
Rory and Coffey said the investment would keep people living in the city employed for years.
“We chose Middletown Works for this location.” [hydrogen-ready] The furnace, you know, it shows that the steel mill is here for the next fifth, sixth and seventh generation of workers in Middletown,” Lori said.
“It gives people peace of mind knowing that we're going to be here for a long time to come. We have generations of employees working here now,” Coffey said.
And they will do that work in a more environmentally friendly way, Coffey said.
Lori said construction is expected to begin in 2025 and be completed in 2029.
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