California’s first steel mill in decades defies staggering obstacles

SEATTLE (Scrap Monster): It’s nice to be able to celebrate a new factory opening in California — rather than mourning one that is leaving. 

That’s why the Mojave Micro Mill in Kern County matters.

As the California Post has reported, the mill, owned by the San Diego-based Pacific Steel Group, will be the first steel production facility in the state in more than half a century when it opens in 2027.

It represents an investment of $700 million, which will have a dramatic effect on the local economy, employing hundreds of people and creating opportunities for a host of secondary industries that will spring up alongside the new venture. 

It sounds almost too good to be true: Manufacturing? In California?

It turns out that California is the largest manufacturing state in the nation in terms of total jobs (almost 1.3 million) and output (more than $400 billion). 

Gov. Gavin Newsom loves to tout California’s No. 1 status. It’s more than a little misleading, though, because in per capita terms, California is only ranked 32nd. (Louisiana is first.)

Still, California does have a large and active manufacturing sector, and it is good to see that even heavy industry, like steel production, can find a way to thrive and expand in California.

Newsom has highlighted the mill, including in his 2026 “State of the State” address. It’s somewhat ironic that the governor is proud of an investment in Kern County, a place with which he has a love-hate relationship.

Kern County is the center of California’s oil and gas industry, which Newsom has attacked relentlessly throughout his two terms as governor.

Newsom has also gone after Kern County for not implementing his “CARE courts,” which are supposed to make it easier to move mentally ill homeless people off the streets.

The problem wasn’t Kern County. Rather, it was the CARE courts themselves.

These fights with local government and local industry do no good.

Some companies are able to adapt to California’s tough business environment. 

The Mojave Micro Mill, for example, will focus on “green” technology, including carbon-scrubbing equipment that reduces emissions from the plant.

That is well and good. But think how many more companies would invest in California — or stay in the state — if they could operate without California’s uniquely crazy regulations.

Regardless, the Mojave steel mill is a hopeful sign. Let’s hope it marks the beginning of a wave of growth and opportunity for California.

Courtesy: www.nypost.com