The state of California is building its first new steel mill in more than 50 years, on a 174-acre site in Kern County, roughly 70 miles southeast of Bakersfield.
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The mill is being built by San Diego-based Pacific Steel Group, which broke ground on the project last year, according to the SF Gate.
The Mojave Micro Mill project will will feature a massive 500,000-square-foot main building and several smaller structures and is anticipated to create some 700 new jobs and to usher in a new era of steel manufacturing for the state.
“California’s economy forges ahead: Pacific Steel breaks ground on state’s first new steel mill in 50 years”
50 years spent writing climate regulations while building zero new steel mills in California.
Pacific Steel just ended the drought. Zero carbon emissions, 700 jobs, $540M investment.
Industrial civilization doesn’t maintain itself through policy papers.
— Zane Hengsperger (@zanehengsperger) May 16, 2025
According to the NY Post, local officials are sweetening the deal with a lucrative $3 million tax incentive that could reward the company with approximately $7,500 for every new job created.
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Democrat Gov. Gavin Newsom’s office released a statement saying, “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.”
The construction of the new mill is surprising to many, considering the state’s Democratic lawmakers and residents lean more toward green energy over that produced by fossil fuel.
Mark Olson, Pacific Steel’s vice president of mill operations, told the SF Gate that the project will deliver “the only steel plant in California that both melts and rolls steel products.”
Olson added, “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 officials confirmed this week that although the project is running on time, the cost has ballooned from $540 million to about $700 million.
The manufacturing powerhouse is expected to employ welders, electricians, millwrights, computer systems engineers and specialists in automation and robotics.
