Photo by WARREN SCOTT U.S. Sen. Sherrod Brown, D-Ohio, standing, received thanks from Lourenco Goncalves, president and chief executive officer of Cleveland-Cliffs, left, and John Saunders, staff representative for United Steelworkers Local 2911, for pushing for regulations supporting the future operation of a transformer plant on former Weirton Steel property.

WEIRTON — Management and union leaders at Cleveland-Cliffs Thursday praised U.S. Sen. Sherrod Brown, D-Ohio, for influencing a change in federal regulations they said will support the development of a transformer production facility in the city.

Lourenco Goncalves, president and chief executive officer of Cleveland-Cliffs, and John Saunders, staff representative for United Steelworkers Local 2911, joined Brown at a press conference in the former Weirton Steel warehouse at the Half Moon Industrial Park that will be used for the new plant.

Goncalves said the plant is expected to begin production in the second half of 2026 and employ 600 workers, with its initial output likely to include pad-mounted transformers used in underground electrical lines.

But he said he also sees the plant supplying transformers for other applications, including artificial intelligence.

“Probably 20 to 30 years down the road, people will see Cleveland-Cliffs as a transformer producer. I can see a lot of opportunities,” said Goncalves.

He said the plant will represent a $150 million investment by the company, including a $50 million loan through the West Virginia Economic Development Authority.

Goncalves said until Thursday he hadn’t publicly endorsed any political candidate but will endorse Brown for his efforts to change federal regulations hindering the plant’s development and the steel industry as a whole.

“He is the one that sees the big picture. The big picture is about the next generation,” said Goncalves.

He said such efforts by Brown and others helps to ensure the United States won’t be reliant on imports.

Addressing the media and about a dozen Cleveland-Cliffs employees in attendance, Brown said he and U.S. Sens. Bob Casey, D-Pa., and Joe Manchin, I-W.Va., worked with steel leaders to push the U.S. Department of Energy to change “a misguided rule” for transformer production.

The department initially called for almost 90 percent of all transformers to include amorphous steel cores but later revised that to allow 75 percent of distribution transformer cores to rely on grain-oriented electrical steel.

In addition to creating American jobs, the move is expected to save utilities and industrial and other commercial entities millions of dollars in electrical costs.

Brown said he last met with Cleveland-Cliffs officials in Weirton following the U.S. International Trade Commission’s denial to an appeal by domestic tinplate producers for tariffs on subsidized foreign imports.

The decision led Cleveland-Clfifs to close its tinplate plant in Weirton.

Efforts by Brown and others to overturn the decision were unsuccessful.

During the press conference, John Saunders, staff representative for United Steelworkers Local 2911, noted the picture then was bleak but said he’s now optimistic about the transformer plant’s role not only in the local economy but in the nation’s energy production.

“This is a great opportunity to bring workers back, but more than that, to use American steel to make transformers that will enable us to produce energy without reliance on foreign countries,’ he said, noting plans call for steel produced in Butler and Zanesville to be used in the transformers.

Saunders said the new plant’s staff, including returning laid off workers, will need to undergo training in manufacturing the new product, but he’s confident the plant will be successful.

“We’re going to make this the most efficient production facility in the world,” he said.

Asked if his efforts clash with the energy platform of the Democrat Party, Brown said it’s not the first time he’s tangled with the current administration.

“I’ve fought with presidents of both parties,” he said, adding he opposed the North American Free Trade Agreement when it was supported by President Bill Clinton.

“I’ll disagree with them. I don’t really care when fighting for the working class,” said Brown.

Brown, who faces Republican challenger Bernie Moreno in his bid for re-election in November, was asked if it was unusual for him to make a West Virginia stop on his campaign trail.

Brown said many employed by Cleveland-Cliffs in Weirton have been Ohioans, and even if they weren’t, the transformer plant’s development will benefit both states and the nation as a whole.

“I’m here because this is something we need to do,” he said.

(Scott can be contacted at wscott@heraldstaronline.com.)