California Poised to Open First New Steel Mill in Over 50 Years

California is set to inaugurate its first new steel mill in more than half a century, a development expected to bring approximately 700 jobs and a substantial $700 million investment to Kern County. The Mojave Micro Mill, currently under construction in Mojave, is slated to commence commercial operations in late August 2027.

Pacific Steel Group, based in San Diego, broke ground on the facility in March 2025. The project spans 174 acres and will feature a 500,000-square-foot main building along with several smaller structures. The initial cost estimate of $540 million has since increased to $700 million, according to company officials.

Once operational, the mill will be the sole facility in California capable of both melting and rolling steel products. The diverse workforce is expected to include welders, electricians, millwrights, computer systems engineers, and specialists in automation and robotics.

The Kern County Board of Supervisors has approved a property tax refund agreement designed to incentivize local hiring. This deal could provide over $3 million in incentives across six years, with approximately $7,500 allocated for each qualifying new job created. Kern County Supervisor Chris Parlier highlighted the project as a transformative development for the region, stating, "The Mojave Micro Mill represents the future of American manufacturing, producing seismic-grade, green rebar right here in Kern County."

The project has also received financial backing from the state. Governor Gavin Newsom's administration previously granted Pacific Steel Group a $30 million California Competes tax credit, contingent on investments exceeding $540 million and the creation of nearly 450 jobs within the first five years of operation. Newsom noted in a March 2025 statement that "Projects like the Mojave Micro Mill show how we can grow our regional economies while simultaneously taking action on climate and improving public health."

The facility is incorporating advanced green technologies, with about 63 acres dedicated to on-site renewable energy. The mill will also feature carbon capture technology and high-efficiency filtration systems aimed at reducing emissions. Mark Olson, Pacific Steel Group Vice President of Mill Operations, told SFGATE, "Our state-of-the-art facility will demonstrate that large-scale industrial manufacturing can thrive in California while leveraging the state’s commitment to renewable energy and a more sustainable industrial future."

Pacific Steel Group is collaborating with local colleges to establish training programs to prepare students for careers in steel manufacturing. CEO Eric Benson described the groundbreaking as a milestone achieved after nearly five years of effort.