It was a big week for Houston steelworkers.
The city announced a new contract with the United Steelworkers (UWS), which will allow it to hire a third of its employees in a steel plant by 2020.
Houston also announced it was going to hire more steelworkers this year.
The news came as part of a major investment by the Houston Economic Development Corp. (HEDC), the city’s economic development arm, to bolster steel production in the city, according to The Houston Chronicle.
The new contract will create 7,000 steelworkers in the state and bring in $2 billion for the city.
HEDC will hire nearly half of them, the Chronicle reported.
“We’re investing $2.5 billion to create more jobs,” Mayor Sylvester Turner said on Monday.
“There are many more jobs to come.”
In November, the Houston Chronicle reported that the UWS had given Houston a $5 million bonus for keeping its steel plants open through 2021.
That is in addition to an initial $3 million bonus that the city had agreed to pay the U.S. Steel Corp. earlier this year to help the company meet its 2025 deadline to keep its Houston plants open.HEDc also announced that the state will now provide $7.2 million to support the construction of two new steel mills in Texas.
The new plant in New Braunfels, Texas, will have the capacity to produce about 2 million tons of steel per year.
The company said it will build two additional mills in the next year in Dallas and Houston.
In a statement, UWS CEO and president Mark McNally called the news “a major step in our mission to transform the steel industry in the United States.”
“These are good news for Houston and for the steelworkers,” McNally said.
“The UWS will continue to invest in the steelmaking and jobs of the state of Texas.
We’re also committed to supporting the recovery of the steel sector in the Houston metropolitan area.”