From bonds to newest grant, JSW Mingo moves forward

Partnerships integral to company’s continued expansion

MINGO JUNCTION -- The Ohio Rail Development Commission Thursday announced it had awarded JSW Steel USA Ohio a $1 million assistance package for its facility in Mingo Junction, joining JSW's efforts to invest in the location with help from public partners for the state and region's economic benefit.

Comprised of a $500,000 grant and $500,000 loan, the assistance package will help finance two rail expansion projects in the Mingo Junction facility. The $5.1 million projects will bolster JSW's rail transportation network, a "vital part" of the steel industry, said Jonathan Shank, chief operating officer of the local plant.

According to a briefing from the ORDC, an independent commission within the Ohio Department of Transportation, the first project will be the expansion of 167 rail car spots -- 184 to 351 -- at the Norfolk Southern/Wheeling & Lake Erie shared yard, as well as the creation of an interplant loop track and rehabilitation of Wheeling & Lake Erie's internal plant crossings.

The second project will see JSW's south end scrap and iron storage handling yard increased to 30 acres from its original 8.5 acres. Including about 3,360 linear feet of track and four rail switches, the briefing said, the project is needed "to maintain the scrap processing volumes required to support 125,000 tons of slab production monthly."

Shank said these projects go "hand-in-hand" with other upgrades connected with JSW's $145 million investment plan that was announced in May and "expected to be completed and commissioned in the fiscal year 2025-2026."

Three months after the May announcement, the Jefferson County commissioners approved JSW's planned issuance of tax-exempt conduit revenue bonds in an amount not to exceed $145 million by the Jefferson County Port Authority, the county's economic development agency.

The bonds will help facilitate improvements to a slab casting machine at the plant and installation of "one of the largest vacuum tank de-gassers in the world," Shank said. He added that the proposed degasser "has substantially lower carbon emissions profile compared to a traditional steam ejector vacuum technology.

"The renewable energy and infrastructure market sectors have a growing demand. The upgrades to the caster and (VTD) will produce a wide range of high-quality and sophisticated grades of steel slabs in the United States (and) help JSW to meet the growing needs of the renewable energy customer segment by providing 'Made in USA' products they need."

Shank thanked Robert Naylor, executive director of the port authority, who initiated JSW's connection with the ORDC, leading to the assistance package being awarded.

Naylor said late 2020 marked the port authority's partnership with JSW Steel USA, which is owned by the JSW Group, based in Mumbai, India. JSW Steel USA, which acquired the Mingo Junction location in 2018, worked with the port authority in 2020 on its first bond issuance to upgrade the electric arc furnace.

The partnership continued, leading to the port authority securing brownfield grant funding from the Ohio Department of Development in 2022 to help JSW "assess legacy environmental issues that predated its ownership of the facility," Naylor said.

JSW officials brought Naylor on a site visit in February to discuss the brownfield program. It was during that site visit, Naylor said, that they informed him of other capital expenses and needs the company had, including rail.

The port authority's working relationship with the ORDC, Naylor said, allowed the agency to help JSW seek rail-related funding programs it might be eligible for. Subsequent meetings followed between JSW officials, the ORDC, the port authority and JobsOhio and OhioSE, which covers Jefferson and 25 other counties in Ohio's Eastern and Southern region.

Last week's finalization of the ORDC's grant and the bond issuance show the "successful public-private partnership" that has helped JSW to continue its expansions that will benefit the community through job retention and creation, Naylor said.

He added that the ORDC's grant "reflects JSW Steel's commitment to Jefferson County and our region."

JSW itself committed to retaining 400 jobs and creating 26 new jobs by the end of its expansion projects, a commitment that Shank reaffirmed.

"The Ohio Valley has a long and proud legacy in the steel industry," Shank said. "We are looking for highly motivated experts in their field to join a team of those who are passionate about how they can contribute to the legacy. I encourage anyone interested to meet with (our human resources officials) at a hiring event."

Naylor said that in addition to its full-time employees, JSW hires paid contractors, who have their own companies and employees. With contractors buying supplies in the area and their employees earning money, the area sees more money being spent in the local economy and the tax base increases.

JSW is making the right moves in a time when President Joe Biden's administration is moving toward renewable energy and coal-burning power plants are being decommissioned, Naylor said. By creating "high-quality steel for the emerging renewable energy sector, JSW will be poised to provide steel products that can target these surface-critical applications, which will only add to economic sustainability in Jefferson County in our region."

Mingo Junction Mayor Ed Fithen, a former Wheeling-Pittsburgh Steel employee, thanked Naylor for his work. He said JSW's improvement initiatives make the business continue to look "brighter and brighter."

Bob Smith, Mingo Junction village administrator, said the village strives to be a "good neighbor" with JSW. The relationship is mutually beneficial, with the creation of more jobs and adequate wages bringing individuals into the village and increasing its tax base through the wage tax.

Having been elected as Mingo Junction's mayor on Nov. 7, Judy Ruckman said she was "overjoyed" at the news of JSW's rail expansion and its potential for jobs in the village.

Ruckman said JSW will have her "full, 100 percent" support upon her installation as mayor. She added, "I want to work with every department and every agency -- anyone who can help us be in a better place in Mingo. ... I'm ready and willing to work."