U.S. Steel said today it will invest $277.5 million at its Fairfield, Ala., mill to build a new steel-making furnace and a plant that will produce couplings that link tubing used in the energy industry.

Construction of both projects is scheduled to begin in the second quarter. The coupling plant will be completed in the first quarter of next year while the furnace is expected to be built by the third quarter of 2016.

“These investments will directly support U.S. Steel’s ongoing transformation journey,” president and CEO Mario Longhi said in a statement issued by the Pittsburgh steel producer.

The $230 million furnace will replace an aging blast furnace, that uses iron ore and coke to produce iron that is converted into steel. The new electric furnace will melt steel scrap.

U.S. Steel said officials from Jefferson County, where the mill is located, provided economic incentives for the projects.

Construction of the facilities will create 650 temporary jobs, the company said.

Shortly before noon, U.S. Steel shares were trading at $22.26, down $1.57.