Cleveland-Cliffs Schedules Groundbreaking Ceremony for its HBI Production Plant in Toledo, Ohio
April 02 2018 - 7:00AM
Business Wire
Cleveland-Cliffs Inc. (NYSE:CLF) announced today that it will be
holding a groundbreaking event on April 5, 2018 to celebrate the
construction of its first hot-briquetted iron (HBI) production
plant.
The company is investing $700 million to build one of the
world’s most modern and efficient iron making plants, generating a
total of 130 new jobs in Toledo, Ohio. At peak construction, 1,200
people will be working on the site. The Toledo plant will produce
1.6 million metric tons per year of customized high-quality HBI,
and will make Cleveland-Cliffs the sole producer of high-quality
customized feedstock for the domestic electric arc furnace (EAF)
steelmakers located in the Great Lakes region. Cliffs’ domestically
produced HBI will supply a Great Lakes market currently estimated
at 3 million metric tons, which is currently supplied exclusively
by imports of commercial quality pig iron and HBI from countries
such as Russia, Ukraine, Brazil and Venezuela, among others.
Start-up of the plant is expected to happen in the summer of
2020.
Lourenco Goncalves, Chairman, President and Chief Executive
Officer, said, “Today we are launching a new era for the iron and
steel industry in the United States. As Cleveland-Cliffs begins the
construction of the first hot-briquetted iron (HBI) production
plant in the Great Lakes region, we are taking the initial steps to
enable EAF steelmakers to produce the specs associated with high
margin steels for sophisticated end markets, such as automotive and
others.” Mr. Goncalves added: “For several decades,
Cleveland-Cliffs has been supplying the American steelmakers in the
Great Lakes with customized pellets to feed their blast furnaces.
With the growth in participation of EAFs, it was just a matter of
time for Cliffs to become a supplier of these important
steelmakers. Our HBI will be for the EAFs the same great feedstock
our taconite pellets are, and will continue to be, for our blast
furnace clients.”
“We’re excited that Cleveland-Cliffs is expanding their presence
in Ohio by building the very first hot-briquetted iron plant in the
Great Lakes region,” said Ohio Governor John R. Kasich. “The great
work of JobsOhio, their local partners and the company’s trust in
the Toledo workforce will create hundreds of new jobs and greater
economic opportunities for families throughout this region.”
Cleveland-Cliffs will be live streaming the groundbreaking event
from the project’s construction site on April 5, 2018. Interested
viewers can pre-register to view the live broadcast via Cliffs’
website at www.clevelandcliffs.com/RegisterHBI
Lourenco Goncalves, Cliffs' Chairman, President and Chief
Executive Officer will be speaking at the event along with the
following dignitaries:
- Congresswoman Marcy Kaptur
- Toledo Mayor Wade Kapszukiewicz
- Dean Monske, President and CEO,
Regional Growth Partnership
- Paul Toth, President and CEO of the
Toledo-Lucas County Port Authority
About Cleveland-Cliffs Inc.
Founded in 1847, Cleveland-Cliffs Inc. is the largest and oldest
independent iron ore mining company in the United States. We are a
major supplier of iron ore pellets to the North American steel
industry from our mines and pellet plants located in Michigan and
Minnesota. Additionally, we operate an iron ore mining complex in
Western Australia. By 2020, Cliffs expects to be the sole producer
of hot briquetted iron (HBI) in the Great Lakes region with the
development of its first production plant in Toledo, Ohio. Driven
by the core values of safety, social, environmental and capital
stewardship, our employees endeavor to provide all stakeholders
with operating and financial transparency. For more information,
visit http://www.clevelandcliffs.com.
Forward-Looking Statements
This release contains statements that constitute
"forward-looking statements" within the meaning of the federal
securities laws. As a general matter, forward-looking statements
relate to anticipated trends and expectations rather than
historical matters. Forward-looking statements are subject to
uncertainties and factors relating to Cliffs’ operations and
business environment that are difficult to predict and may be
beyond our control. Such uncertainties and factors may cause actual
results to differ materially from those expressed or implied by the
forward-looking statements. These statements speak only as of the
date of this release, and we undertake no ongoing obligation, other
than that imposed by law, to update these statements. Uncertainties
and risk factors that could affect Cliffs’ future performance and
cause results to differ from the forward-looking statements in this
release include, but are not limited to: uncertainty and weaknesses
in global economic conditions, including downward pressure on
prices caused by oversupply or imported products, the impact of
barriers to trade, the outcomes of trade cases, reduced market
demand and any change to the economic growth rate in China;
continued volatility of iron ore and steel prices and other trends,
including the supply approach of the major iron ore producers,
affecting our financial condition, results of operations or future
prospects specifically, the impact of price-adjustment factors on
our sales contracts; our ability to successfully diversify our
product mix and add new customers beyond our traditional blast
furnace clientele, specifically successful completion of our HBI
production plant; our level of indebtedness could limit cash flow
available to fund working capital, capital expenditures,
acquisitions and other general corporate purposes or ongoing needs
of our business; availability of capital and our ability to
maintain adequate liquidity; risks related to former and current
international operations, including our ability to successfully
conclude the CCAA process in Canada and plan for the end of mine
life in Australia in a manner that minimizes cash outflows and
associated liabilities; our actual economic iron ore reserves or
changes in current mineral estimates, including whether any
mineralized material qualifies as a reserve; the impact of our
customers reducing their steel production due to increased market
share of steel produced using other methods or lighter-weight steel
alternatives; the ability of our customers, joint venture partners
and significant suppliers and service providers to meet their
obligations to us on a timely basis or at all; the outcome of any
litigation or arbitration, including any contractual disputes with
our customers, joint venture partners or significant energy,
material or service providers; our ability to maintain satisfactory
relations with unions and employees; impacts of existing and
increasing governmental regulation and related costs and
liabilities, including failure to receive or maintain required
operating and environmental permits, approvals, modifications or
other authorization of, or from, any governmental or regulatory
entity and costs related to implementing improvements to ensure
compliance with regulatory changes; problems or uncertainties with
productivity, tons mined, transportation, capital spending,
mine-closure obligations, environmental liabilities, employee
benefit costs and other risks of the mining industry; our ability
to cost-effectively achieve planned production rates or levels,
including at our HBI production plant; our ability to successfully
identify and consummate any strategic investments or development
projects, including our HBI production plant; changes in sales
volume or mix; our ability to reach agreement with our customers
regarding any modifications to sales contract provisions, renewals
or new arrangements; events or circumstances that could impair or
adversely impact the viability of a mine and the carrying value of
associated assets, as well as any resulting impairment charges;
uncertainties associated with natural disasters, weather
conditions, unanticipated geological conditions, supply or price of
energy, equipment failures and other unexpected events; adverse
changes in currency values, currency exchange rates, interest rates
and tax laws; uncertainty relating to restructurings in the steel
industry and/or affecting the steel industry; and the potential
existence of significant deficiencies or material weaknesses in our
internal control over financial reporting.
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version on businesswire.com: https://www.businesswire.com/news/home/20180402005260/en/
MEDIA:Patricia Persico, 216-694-5316Director, Corporate
CommunicationsorINVESTOR CONTACT:Paul Finan,
216-694-6544Director, Investor Relations
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