Governor Early Ray Tomblin said that the company, which would create about 60 jobs with its new facility, would use its technology to produce cokonyx, relying on coal as the main component.

“Carbonyx is a tremendous innovator in the steel-making business – and they've decided to invest right here in the Mountain State because of our top-notch workforce and winning business climate,” he said.

“This company could have chosen anywhere in the world to build this plant, and they chose Jackson County.

Following centuries of steel-making using coke, a high-carbon, hot-burning fuel source, Carbonyx has developed the cokonyx coke substitute, a carbon alloy that offers lower cost and less environmental impact than traditional coke.

CEO Dr Siddhartha Gaur said that choosing West Virginia for its carbon alloy facility was a natural fit because of the state’s coal reserves and long standing tradition with the steel industry.

“During our efforts we received unprecedented support from people of all walks of life,” he said.

Carbonyx, which will be located in Millwood, will start construction once several key elements are finalised over the next several months.

Construction is planned for a 2014 start, and new positions include management, operators and maintenance personnel.

The West Virginia Economic Development Authority gave preliminary approval to a $US15 million, 10-year loan to finance equipment at the plant.

Tomblin said the West Virginia Development Office spent over a year in discussions with Carbonyx officials to make the deal for the facility.