The new $150 million facility at Coshocton Works employs 100% hydrogen technology, enhancing product quality and sustainability for high-end automotive and appliance sectors.
Cleveland-Cliffs Inc. today marked a significant milestone with the official commissioning of its state-of-the-art Vertical Stainless Bright Anneal Line at its Coshocton Works facility in Coshocton, Ohio. This substantial $150 million capital investment is set to revolutionize the production of premium stainless steel, specifically targeting high-end automotive and critical appliance applications.
The newly operational annealing line represents a leap forward in sustainable steel manufacturing. Diverging from conventional acid-based processing, the innovative system utilizes a 100% hydrogen atmosphere. This not only eliminates the need for harsh chemicals but also incorporates a hydrogen recovery unit, designed to recycle hydrogen and maintain a balanced 50/50 mix of new and used hydrogen in the process.
To commemorate this pivotal achievement, Cleveland-Cliffs will host a ribbon-cutting ceremony on Wednesday, July 2, at 11:00 a.m. ET at the Coshocton Works facility. The event is expected to draw a distinguished gathering, including key elected officials, Cleveland-Cliffs executives, dedicated employees, and valued customers, all eager to witness the launch of this advanced manufacturing capability.
Lourenco Goncalves, Cliffs’ Chairman, President, and CEO, expressed strong confidence in the new line's impact on the company’s strategic direction and profitability. “Since acquiring AK Steel in 2020, our stainless steel business has been the most consistent profit generating unit for Cleveland-Cliffs,” Goncalves stated. “This new line at Coshocton only enhances that, with an expected quick payback on this major investment.”
Goncalves further emphasized the strategic advantages derived from this technological upgrade. “By using hydrogen and advanced automation, we’re dramatically improving the quality and productivity of this critical product that our customers rely upon Cleveland-Cliffs for. As we embrace the new competitive landscape in the domestic steel industry, our profitability prospects are only getting stronger.” This statement highlights Cleveland-Cliffs' proactive approach in strengthening its market position through technological innovation and a focus on high-value products.
The investment reflects Cleveland-Cliffs' broader strategy of enhancing its capabilities in value-added steel products, particularly for the demanding automotive sector, where stringent quality standards are paramount. The Coshocton facility, now equipped with this cutting-edge technology, is poised to solidify Cleveland-Cliffs' leadership in the domestic stainless steel market, ensuring a consistent supply of superior materials for crucial industries.
