A big shot in the arm for Lorain. Canton-based Republic Steel says it will invest more than $85 million dollars in new equipment at it's Lorain steelmaking plant. The investment protects 489 jobs -- and adds another 449.
Republic says the investment is subject to ratification of a new contract with union workers. Republic also operates plants in Canton and Massillon in Ohio.
News release - Republic Steel
Republic Steel, the nation’s leading provider of special bar quality (SBQ) steel, today announced it will invest $85.2 million in an electric arc furnace and associated equipment at its steelmaking facility in Lorain, Ohio, to meet growing customer demand for the company’s SBQ steel. The location was chosen for its proximity to customers and its skilled workforce.
The announcement was made at the site by Republic Steel President and Chief Executive Officer Jaime Vigil, and is subject to finalization and ratification of a new labor agreement with the United Steelworkers. It is estimated that the project will bring 449 new jobs and more than $1 billion dollars in annual economic activity to Ohio. The existing 489 jobs at the Lorain facility will be retained.
“This investment in our Lorain plant will help Republic Steel maintain its position as the industry leader in SBQ manufacturing,” Vigil said. “The additional capacity created by the new furnace will allow us more flexibility and efficiency in delivering the highly engineered products our customers require.”
On hand for the announcement were Ohio Governor John Kasich and local dignitaries showing support for the project’s role in bringing jobs and prosperity to Lorain and positioning the state of Ohio to be a leader in tomorrow’s economy.
The new furnace is expected to increase the company’s steel production by one million tons annually and will account for Lorain’s first significant growth in steelmaking in the 21st century. It will also enable production of bloom cast for the production of SBQ bar and the production of seamless tube rounds.
Construction of the electric arc furnace is scheduled to begin in 2012 and be complete in mid 2013.