Cleveland-Cliffs Plans $200M Butler GOES Expansion
Cleveland-Cliffs is investing $200 million at Butler Works in Pennsylvania to expand U.S. grain-oriented electrical steel production by up to 25%, with the project supported by up to $75 million from the U.S. Department of Energy.
- Cleveland-Cliffs is investing $200 million in its Butler Works GOES operation in Pennsylvania.
- The U.S. Department of Energy is supporting the project with up to $75 million.
- The upgrade is expected to increase GOES production volume by up to 25%.
- Four induction reheat furnaces will replace two existing natural-gas-fired slab reheat furnaces.
- Cleveland-Cliffs targets completion in early 2028, while the DOE project schedule currently lists 2029.
Cleveland-Cliffs is moving ahead with a $200 million expansion of grain-oriented electrical steel production at its Butler Works facility in Pennsylvania, a project intended to raise production volume of the specialized transformer steel by up to 25%.
The investment is supported by up to $75 million from the U.S. Department of Energy. Cleveland-Cliffs identifies Butler Works as the sole U.S. producer of grain-oriented electrical steel, or GOES, a specialized electrical steel used in transformer cores and other power-grid equipment.
Four induction furnaces will replace gas-fired units
The project includes four new induction reheat furnaces manufactured in Warren, Ohio. They will replace two existing natural-gas-fired slab reheat furnaces at Butler Works.
Cleveland-Cliffs said the new equipment will improve heating efficiency and steel quality, reduce production losses and lower emissions associated with the hot-rolling process. The upgrade will also partially electrify the slab-reheating stage of production.
The company expects the project to support approximately 220 construction jobs at peak construction activity.
Completion schedules differ between Cliffs and DOE
Cleveland-Cliffs said in its October 5 project update that completion is expected in early 2028. The Department of Energy's current Butler Works project page, however, lists an expected completion date of 2029.
The differing schedules should therefore be treated separately rather than as a single confirmed completion date.
GOES expansion targets transformer supply chain
The investment comes as U.S. utilities increase spending on grid modernization, generation and electrical infrastructure, all of which require transformers and related equipment. Cleveland-Cliffs said additional GOES production from Butler Works is intended to support growing domestic transformer demand.
Large data-center developments are also adding significant electricity loads in parts of the United States, increasing requirements for generation, transmission, substations and transformers. That broader buildout is contributing to manufacturing investment across the electrical-equipment supply chain.
Southwire, for example, has begun a more than $256 million expansion of its Starkville, Mississippi, manufacturing campus. The project will add approximately 380,000 square feet and additional wire and cable manufacturing capacity, with full capacity expected in 2028.
Stelco capacity reductions provide a contrasting development
Separately, GMK Center reported that Cleveland-Cliffs will suspend part of its Stelco operations in Ontario, Canada, beginning October 9 for an indefinite period.
The reported reductions cover cold-rolling and coating operations and could affect up to 500 employees. GMK Center, citing Reuters, attributed the move to losses associated with U.S. trade tariffs and wider market conditions.
The Stelco action is separate from the Butler Works GOES investment and should not be interpreted as evidence of a broader reduction in Cleveland-Cliffs' U.S. electrical-steel strategy.
Source context: GMK Center reporting; Cleveland-Cliffs; U.S. Department of Energy; Southwire.
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