Republic Steel could see reinvestment from international companies

LORAIN — A steel mill in South Lorain could see new life. Potential investments at Republic Steel could bring 500 to 1,200 jobs back to the International City, according to an announcement from Mayor Jack Bradley on Thursday. The mill's parent company, Guadalajara, Mexico-based Grupo Simec, told the mayor it had discussions with international steel producers interested in establishing operations in Lorain. Those discussions have been driven, in part, by tariffs on foreign-made steel level by President Donald Trump this summer. In June, Trump raised tariffs on imported steel from 25 percent to 50 percent. "They (Grupo Simec) feel very strongly that because of the tariff situation, it's going to be more economical to produce steel in the U.S. than to have it imported," Bradley said. "That's why there's a much bigger interest now." Grupo Simec is negotiating with two investors for either a long-term lease, sale or joint venture for the Republic Steel site, Bradley said, though he could not provide the name of the potential international investors. Bradley did not have a timeline for the potential investment. Steel production would not be the only type of investment they're looking at on that property, Bradley said, adding that other business ventures could bring additional jobs beyond the estimated 500 to 1,200 in steel production announced on Thursday. Councilman Angel Arroyo, D-6th Ward, said opportunities like those announced Thursday strengthen the local economy, support families and help move the city forward. Lorain's steel mills are in his ward. "Any time we are able to bring new businesses into our city or see operations resume with good-paying salaries, it is a win for everyone," Arroyo said. "... I remain committed to advocating for development that uplifts our neighborhoods and creates strong, sustainable jobs for our residents." He also thanked the city's administration for its continued effort to bring jobs to Lorain. The city has been in regular contact with Grupo Simec since it served a search warrant on Republic Steel in April 2024. A caravan of representatives from Lorain's building, engineering, utilities, fire and police departments, alongside Lorain County Public Health and others entered the property following drone footage that showed long-vacant buildings on the site collapsing. Since then, representatives from Grupo Simec have kept officials updated on progress to reinvest in the site, Bradley said. The company has also torn down at least three buildings the city requested be demolished due to safety concerns. The mayor said Grupo Simec did not believe it would take a "huge" investment to restart operations at the Lorain site, adding that it estimates the continuous arc furnace and rolling mill could be up and running in less than a year if an investor were to come in on the project. The project hinges, in part, on the results of a FirstEnergy load study to confirm it can support the businesses interested in the site, Bradley said. That study is expected to be complete by the end of the year. Mario Moreno, head of finance at Grupo Simec, confirmed in a statement to The Chronicle-Telegram that the company had been in conversations with several others who had shown interest in using its "steelmaking assets" in Lorain and Canton to produce products domestically. He declined to provide additional details, citing nondisclosure agreements. For years, rumors have circulated about the mill's reopening. Bradley first announced inklings of Grupo Simec's most recent reinvestment bid in February during his State of the City address. Prior to that, Bradley had announced plans for Republic to reopen its rolling mill in 2021, and during his first State of the City address in 2020 when he told attendees the company was willing to restart its furnaces for about $50 million. Prior to Bradley taking office, similar promises of investment came and went. The south side property has been home to a steel mill since the 1890s, when it was operated by Johnson Steel. Republic idled the mill in 2016 and it has been mostly vacant since then, save for a skeleton crew of employees. At most, since Bradley took office, there were about 100 employees processing lead-based steel produced at Republic's Canton facility, he said, but even they are gone now. Bradley said there was only a security crew and a sole Republic Steel employee left at the facility. As for Republic's next-door neighbor, Bradley said there had been no movement on plans for U.S. Steel. He plans to discuss the fellow East 28th Street property during meetings with officials in Washington, D.C., early next year. Nippon Steel bought out U.S. Steel earlier this year, and has pledged to invest $11 billion to upgrade U.S. Steel's facilities, The Associated Press reported. Those investments are expected by the end of 2028, but it is unclear if they include the facility in Lorain. Contact Carissa Woytach at (440) 329-7245 or cwoytach@chroniclet.com.