California plots jobs boom with first manufacturing facility of its kind in 50 years

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California is preparing to fire up a massive new steel mill for the first time in more than half a century, bringing hundreds of jobs and a whopping $700 million investment to the Golden State. 

The Mojave Micro Mill, currently under construction in Kern County, is expected to create roughly 700 jobs while ushering in a new era of steel manufacturing in California.

And local officials are sweetening the deal with a lucrative tax incentive that could reward the company with approximately $7,500 for every new job created.

San Diego-based Pacific Steel Group broke ground on the sprawling facility in March 2025, marking the first steel mill built in California in more than 50 years.

The ambitious project, located on 174 acres in Mojave, will feature a massive 500,000-square-foot main building and several smaller structures, according to SFGATE.

But the price tag has skyrocketed.

Initially projected to cost $540 million, the facility’s estimated construction costs have ballooned to approximately $700 million, company officials confirmed to the outlet.

Despite the hefty increase, construction remains on schedule, with commercial operations expected to begin in late August 2027.

Once operational, the facility will become “the only steel plant in California that both melts and rolls steel products,” Pacific Steel Group Vice President of Mill Operations Mark Olson told SFGATE.

The manufacturing powerhouse is expected to employ welders, electricians, millwrights, computer systems engineers and specialists in automation and robotics.

In September, the Kern County Board of Supervisors unanimously approved a property tax refund agreement designed to encourage the company to hire local workers.

The deal could deliver more than $3 million in incentives over six years, with approximately $7,500 tied to each qualifying new job.

Kern County Supervisor Chris Parlier praised the project as a game changer for the region.

“Pacific Steel Group’s investment in Kern County is more than just the construction of a steel mill—it’s a transformational step forward for our local economy and workforce,” Parlier said during the groundbreaking.

“The Mojave Micro Mill represents the future of American manufacturing, producing seismic-grade, green rebar right here in Kern County.”

The project has also received a hefty helping of financial support from Sacramento.

Gov. Gavin Newsom’s administration previously awarded Pacific Steel Group a $30 million California Competes tax credit in exchange for commitments to invest more than $540 million and create nearly 450 jobs during the facility’s first five years.

“Projects like the Mojave Micro Mill show how we can grow our regional economies while simultaneously taking action on climate and improving public health,” Newsom said in a March 2025 statement.

The facility is also betting big on green technology.

Approximately 63 acres will be dedicated to on-site renewable energy, while advanced carbon capture technology and high-efficiency filtration systems are intended to slash emissions.

“Our state-of-the-art facility will demonstrate that large-scale industrial manufacturing can thrive in California while leveraging the state’s commitment to renewable energy and a more sustainable industrial future,” Olson told SFGATE.

Pacific Steel Group is also partnering with local colleges to develop training programs and prepare students for careers in steel manufacturing.

CEO Eric Benson called the groundbreaking a milestone nearly five years in the making.

“I could not be more proud of the team that we have assembled,” Benson said. “Their collective efforts in achieving this milestone is truly an extraordinary accomplishment.”

For Kern County, the project promises more than a return to old-school manufacturing, it could deliver hundreds of new paychecks and a major economic boost.

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