California breaks ground on first steel mill in 50 years, promises new jobs

Pacific Steel Group broke ground March 5 on a new steel mill in Mojave, marking the first such facility to be built in California in over 50 years.

According to state officials who joined local leaders and private sector partners at the ceremony, the 500,000-square-foot Mojave Micro Mill aims to revolutionize steel manufacturing with zero carbon emissions while creating hundreds of jobs in Kern County.

The project is expected to generate nearly 700 jobs, including positions for electricians, millwrights, welders, computer systems operators, and automation, controls, and robotics specialists.

"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," said Gov. Gavin Newsom. "In California, we are doubling down on innovative technologies to create jobs and ensure our roads, bridges, and hospitals are built with cleaner materials made right here in California."

Last year, the mill received a $30 million California Competes tax credit from the Governor's Office of Business and Economic Development, which helped Pacific Steel hire employees and invest in manufacturing equipment. In exchange, the company committed to more than $540 million in capital investments and nearly 450 new jobs during the mill's first five years of operation.

Pacific Steel is collaborating with California State University, Bakersfield, the Kern Community College District, and Antelope Valley Community College to establish pathways to employment, including a certificate program to prepare students for steel manufacturing careers.

"This is a very exciting day for our company. It represents a culmination of nearly 5 years of

work and is the first tangible step toward full vertical integration of our reinforcing steel

operations," said Pacific Steel Group CEO, Eric Benson in an interview with KGET News. "I could not be more proud of the team that we have assembled."

Officials said the facility will dedicate 63 of its 174 acres to on-site renewable energy and plan to establish new industry standards for emissions reduction by incorporating a state-of-the-art carbon capture system and secondary high-efficiency filtration.

This development aligns with Newsom's meeting with the Kern County Jobs First Collaborative last November, where he heard about local economic priorities as part of his tour to develop the statewide California Jobs First Economic Blueprint.

The Mojave Micro Mill will bring steel manufacturing back to California and localize the supply chain by supporting in-state manufacturing of materials needed for public infrastructure such as roads, bridges, and hospitals.

California leads the nation in clean energy jobs with more than 500,000 positions, twice as many as Texas, the next highest state. The clean energy sector plays a key role in meeting California's climate goals, with seven times more clean energy jobs than fossil fuel jobs in the state.

California maintains its position as the fifth-largest economy globally. According to state officials, the state continues leading the nation in new business starts, access to venture capital funding, manufacturing, high-tech, and agriculture.