MOJAVE — The investment Pacific Steel Group is making in an East Kern project has grown from an estimated $540 million to roughly $800 million, according to Mark Olson, the company’s vice president of mill operations. The San Diego-based firm is privately held and specializes in steel fabrication.
When completed sometime in early 2027, its Mojave Micro Mill will be the only steel mill operating in California. Gov. Gavin Newsom recognized the project in March 2025 as an example of growing regional economies “while simultaneously taking action on climate and improving public health.” According to PSG, the project will produce seismic-grade green rebar.
Olson’s update on the investment came as part of his response to questions about a recent Kern County decision to approve a property tax rebate tied to job creation.
On Sept. 29, the Kern County Board of Supervisors unanimously approved the incentive. It is capped at $3.375 million over approximately six years, with a possible time extension.
Nancy Anderson, chief administrative officer, recommended approval of the agreement in a staff report. The agreement is retroactive to June 29. Because the agenda item was part of the board’s consent calendar, there was no discussion.
The total incentive payable under the agreement is set at $7,500 per new full-time job up to the maximum. According to Anderson’s staff report, the agreement calls for an average annual salary of $71,440. Based upon a full-time job, that average salary is equivalent to more than $34 per hour.
“We are thankful that Kern County offers the AdvanceKern Program,” Olson said, responding by email to an inquiry following the approval. “This incentive program enables Pacific Steel Group to take a risk and invest over $800 million in East Kern County. We are excited to start making steel at the Mojave Micro Mill and we can’t wait until the facility is fully operational and 450 new workers are earning family sustaining wages.”
Second District Supervisor Chris Parlier, also responding by email to a request for comment, said the tax rebate incentive is appropriate for the project.
“I am excited to see projects like Pacific Steel Group choose Kern County as their new home,” Parlier said. “The AdvanceKern incentive program is a tool we are able to use to attract major employers like Pacific Steel Group. Without tools like AdvanceKern we may lose potential projects … that are going to hire 450 new employees. The economic benefits of 450 living-wage jobs in East Kern will be transformational for all of East Kern.”
The agreement states that the incentive will be funded by property and sales taxes paid by PSG.
When the project was approved, the county estimated gross cumulative tax revenues from 2024 to 2033 would total between $63 million and $73 million. At the time, the company’s investment was estimated at $540 million. Olson did not respond to an inquiry about the basis of the increased in investment.
The county’s project approval also requires the company to pay $100,000 annually to benefit the Kern County Fire Department’s CO2 capture-related equipment and training programs.
In exchange for the property tax rebate, PSG has agreed to complete at least $500 million in capital investments at the facility by June 30, 2028, and to create a minimum of 353 new full-time permanent jobs, with benefits, available to and filled by Kern County residents during the first year of operation ending Jan. 2, 2030. A minimum of 450 new full-time permanent jobs, with benefits, are to be available to and filled by county residents by the end of the first year of full production capacity, no later than Dec. 31 of that year.
Current status
Olson said that the company has just over 40 employees working at the Mojave site currently.
“We are just ramping up our hiring and will hire many more staff in the months and year to come,” he said. “Our target is to have 450 new full-time positions.”
He added that the company hopes to hire local employees who live close to the mill.
“We will be targeting East Kern County specifically for our outreach.”
Groundbreaking for the project was in March 2025.
Olson noted that the corporate office will remain in San Diego.
About AdvanceKern
AdvanceKern is part of an economic development incentive program adopted by the Board of Supervisors in November 2017 and amended in November 2021. According to the staff report, its purpose is “to attract and grow businesses which complement existing industries, assist in the growth and diversification of the county’s economic base, provide employment opportunities for residents, and facilitate the creation of good paying jobs” in unincorporated Kern County.
Both Olson and Parlier said the county encouraged PSG to apply for the incentive. The company’s application was submitted in 2025.
“AdvanceKern prioritizes full-time, living-wage jobs with benefits, the program supports wage growth, strengthens the local economy and advances the county’s goal of becoming the best place in California to start or grow a business,” Parlier said.
About the mill
The steel mill under construction is located on 174 acres at the southeast corner of Sierra Highway and Sopp Road, south of Mojave.
The project includes a nearly half-million-square-foot main structure and accessory buildings. The completed facility will include an accessory solar array covering about 63 acres.
Approval of the project included an amendment to an element of the county’s General Plan, a change in zone classification from limited agriculture to heavy industrial – precise development, two conditional use permits, two zone variances and a precise development plan.
An environmental impact report and mitigation monitoring and reporting program were prepared, and in March 2024 the Board of Supervisors determined that the project, as approved, would have a significant and unavoidable impact on the environment. Specifically, the impacts included aesthetics, air quality, biological resources, noise and wildfire.
Job creation and tax revenue were cited as benefits when the board approved the project with a statement of overriding considerations, along with mitigation measures.
Claudia Elliott is editor and founder of The Mojave Beat. She can be reached at claudia@mojavebeat.news.