Cleveland-Cliffs plans to establish a new electrical distribution transformer production plant in Weirton, W.Va., which is expected to be completed by 2026.

The total capital investment is $150 million, of which $50 million will be granted by the state of West Virginia to Cleveland-Cliffs through a forgivable loan.

The company said the new plant will address the shortage of distribution transformers that is stifling economic growth across the United States.

The Cleveland-based company, which employs 28,000 workers in the United States and Canada, expects the new facility will generate additional demand for specialty steel made at its mill in Butler.

In a statement, Lourenco Goncalves, Cleveland-Cliffs’ president, chairman and CEO, said distribution transformers, currently in short supply, “are critical to the maintenance, expansion, and decarbonization of America’s electric grid.”

This investment will result in reemployment opportunities for 600 United Steelworkers union-represented workers from the indefinitely idled Weirton tinplate mill.