According to local newspaper the Pueblo Chieftan, EVRAZ is considering an estimated $480 million in improvements at its Pueblo, Colorado steel mill to produce longer rails and transform the plant into “the most modern rail-rolling facility in North America.” The project also would reportedly allow the mill to maintain its employment of around 1,000 workers.
A final decision on the project is expected next year, and construction could begin as early as the end of 2019 and be completed in 2021. Once completed, the plant would produce new rails that are four times longer than the 25-meter rail sections currently produced at the mill.
EVRAZ vice president of developer Christian Messmacher told the newspaper that the company considered several sites around the US for investment, eventually choosing Pueblo due to “tremendous support” from community leaders.
The Pueblo City Council is scheduled to review numerous local economic development incentives as part of project. The incentive package includes a grant of $15 million from the city's half-cent sales tax fund for economic development, along with other incentives including property and sales tax breaks.
Additionally, the state Public Utilities Commission approved in early October an agreement between EVRAZ and power supplier Xcel Energy to provide the steelmaker a fixed low-cost rate for power if a plant expansion goes through. The EVRAZ-Xcel agreement also calls for the construction of a solar farm on EVRAZ's property.