California to Open First Steel Mill in 50 Years

The mill, which will manufacture ‘first-of-its-kind zero carbon emissions steel,’ is expected to open in 2027.

Pacific Steel Group is building California's first steel mill in Kern County. Gov. Gavin Newsom's Office

Pacific Steel Group celebrated the groundbreaking on March 5 of California’s first steel mill in 50 years, a project Gov. Gavin Newsom called “one of the cleanest mills in the world.”

The 500,000-square-foot Mojave Micro Mill planned for Kern County is expected to create nearly 700 jobs for electricians, millwrights, welders, computer system operators, and other workers, according to the governor’s office.

“Projects like the Mojave Micro Mill show how we can grow our regional economies while simultaneously taking action on climate and improving public health—all key pillars of California Jobs First,” Newsom said in a statement on Friday.

The mill is designed to manufacture reinforcing steel and will offer “first-of-its-kind zero carbon emissions steel,” the governor’s office said.

“This is a very exciting day for our company,” Pacific Steel Group CEO Eric Benson said in a statement on Wednesday. “It represents a culmination of [nearly five] years of work and is the first tangible step toward full vertical integration of our reinforcing steel operations.”

Of the 174 acres in Mojave, Calif., dedicated to the new facility, 63 acres will be set aside for onsite renewable energy, the governor’s office reported.

The facility is set to establish new industry standards for emissions reduction by incorporating a carbon capture system and a secondary high-efficiency filtration system.

According to Newsom, steel produced at the new mill is expected to stay local, supporting public infrastructure for roads, bridges, and hospitals.

The mill project received $30 million in California Competes tax credit, which the Governor’s Office of Business and Economic Development allocated last year.

The funding has helped Pacific Steel hire employees and invest in manufacturing equipment, according to Newsom’s office.

In exchange for the tax credits, the company committed to more than $540 million in capital investments and nearly 450 new jobs in the mill’s first five years of operation, the governor’s office reported.

Pacific Steel is also collaborating with California State University, Bakersfield, the Kern Community College District, and Antelope Valley Community College to help students find jobs, including adding a certificate program for steel manufacturing careers.

California Gov. Gavin Newsom speaks in Los Angeles on Sep. 25, 2024. John Fredricks/The Epoch Times

Kern County Supervisor Chris Parlier joined Pacific Steel at Wednesday’s ceremony to highlight the project’s importance for the county, the company said.

“Pacific Steel Group’s investment in Kern County is more than just the construction of a steel mill—it’s a transformational step forward for our local economy and workforce,” Parlier said in a statement. “The Mojave Micro Mill represents the future of American manufacturing, producing seismic-grade, green rebar right here in Kern County.”

The plant is expected to open in the first few months of 2027, according to Pacific Steel.

The governor’s office said the state’s California Jobs First Economic Blueprint, announced on Feb. 26, sets out a new economic vision for the state’s future.

The plan sets aside $125 million in funding for new, ready-to-go projects, $15 million for economic development projects for California’s Native American tribes, $13 million to support the economic recovery of small business in the Los Angeles region, and $92 million to fund new apprenticeship and jobs programs.