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California's economy forges ahead: Pacific Steel breaks ground on state's first new steel mill in 50 years

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Mar 7, 2025

California's economy forges ahead: Pacific Steel breaks ground on state's first new steel mill in 50 years

What you need to know: Pacific Steel Group's Mojave Micro Mill will be the first steel mill built in California in the last five decades, bringing economic growth to Kern County and revolutionizing the industry with first-of-its-kind zero carbon emissions steel — creating hundreds of new clean jobs and advancing California's climate goals.

MOJAVE – On Wednesday, state officials joined local leaders and private sector partners to celebrate the groundbreaking of Pacific Steel's 500,000 square foot Mojave Micro Mill, the first steel mill to be built in California in more than 50 years.

In addition to being one of the cleanest mills in the world, this project is also expected to catalyze job opportunities and economic development throughout the Kern County region. Nearly 700 jobs are expected to be created, including electricians, millwrights, welders, computer systems operators and specialists in automation, controls and robotics.

"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. 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."

Governor Gavin Newsom

Building a community-led, climate-forward economy

As part of the Governor's tour to develop the statewide California Jobs First Economic Blueprint, Governor Newsom met with the Kern County Jobs First Collaborative last November to hear more about their local economic priorities — this mill demonstrates how the region is advancing initiatives that create more good-paying jobs in climate-forward industries.

The project received a $30 million California Competes tax credit last year from the Governor's Office of Business and Economic Development (GO-Biz), which was critical to the groundbreaking and has helped Pacific Steel hire employees and invest in manufacturing equipment. In exchange for this tax credit, the company committed to more than $540 million in capital investments and nearly 450 new jobs in the mill's first 5 years of operation.

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Pacific Steel is also 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 equip students for steel manufacturing careers.

Realizing a carbon neutral future

Along with bolstering economic activity in Kern County, the Mojave Micro Mill will set the standard for steel manufacturing and demonstrate how this industry can play a leading role in moving California toward a carbon neutral future.

Approximately 63 of the mill's 174 acres will be dedicated to on-site renewable energy, and the facility is set to establish new industry standards for emissions reduction by incorporating a state-of-the-art carbon capture system and secondary high-efficiency filtration.

Moreover, this project will bring steel manufacturing back to the Golden State and localize the supply chain – supporting a transition to clean, in-state manufacturing of materials essential for public infrastructure like roads, bridges and hospitals.

California's clean energy and economic dominance

The clean energy sector is key to meeting the state's climate goals. California now has seven times more clean energy jobs than fossil fuel jobs and continues to be home to the most clean energy jobs in the nation. With more than a half-million clean energy jobs in the state – twice as many as the next state, Texas – Governor Newsom is doubling down on efforts to create even more climate-forward jobs.

California remains the fifth-largest economy in the world. With an increasing state population and recent record-high tourism spending, California is the nation's top state for new business starts, access to venture capital funding, and manufacturing, high-tech, and agriculture.

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