It’s officially over between the State of West Virginia and Cleveland-Cliffs.
Cleveland-Cliffs had announced a transformer production plant for Weirton last summer. West Virginia political leaders hailed the announcement at the time.
The plan had been for Cleveland-Cliffs to repurpose its Half Moon Warehouse in Weirton to start production of three-phase distribution transformers used in electric power distribution systems. Cliffs had expected the new plant to come online in the first half of 2026.
The total capital investment had been $150 million, with one-third granted by the state of West Virginia to Cliffs through a forgivable loan of $50 million.
On May 7, Cleveland-Cliffs announced it would be abandoning those plans, part of several cost-cutting moves the steelmaker is undergoing up against millions of dollars in losses across the company.
When that announcement was made, several state political figures wanted assurances that West Virginia would retain the $50 million that had been offered as a forgivable loan.
On May 15, attorneys for Cleveland-Cliffs officially declined the state’s financial incentives that were in a memorandum of understanding.
West Virginia MetroNews obtained the document through a Freedom of Information Act request to the state Development Office, asking for status reports related to the arrangement with the state. The declination of funding was the only responsive document, according to the Department of Economic Development.
In it, lawyers for Cleveland-Cliffs wrote that the company would no longer pursue the goals outlined in the terms with the state.
“After careful consideration of its current business strategy and operational priorities, Cleveland-Cliffs hereby formally notifies the WVDED that Cleveland-Cliffs respectfully declines the funding offered under the terms of the MOA,” wrote Sarah Ellis, an attorney with Steptoe & Johnson, representing the steelmaker.
“This decision was not made lightly, and Cleveland-Cliffs greatly appreciates WVDED’s support and our shared interest in fostering industrial growth in West Virginia.”
That letter added, “Cleveland-Cliffs remains grateful for the WVDED’s partnership and looks forward to the possibility of future collaboration under different circumstances.”