The new plant complex, which is scheduled to begin operations in 2010, is expected to be one of the largest private industrial development projects in the US over the next decade.
Earlier this month, ThyssenKrupp AG announced that it has selected Alabama as the home for its new state-of-the-art steel and stainless steel processing facility. The facility, a cooperative effort between ThyssenKrupp Steel and ThyssenKrupp Stainless, will be located in Northern Mobile and Southern Washington counties. The decision was approved by ThyssenKrupp AG's Supervisory Board during its meeting in Dusseldorf, Germany. Initially planned as a $2.9 billion investment, ThyssenKrupp also announced today that it will now invest $3.7 billion in this facility. The increased investment primarily results from a rise in both steel and stainless steel capacity, as well as the installation of additional equipment to allow further diversification of the product portfolio.
"This facility represents the largest investment in the history of ThyssenKrupp Stainless,” said Michael Rademacher, vice chairman and CFO of ThyssenKrupp Stainless. “While our direct entry to the US market is perhaps a bold step, it is also a logical and forward-looking one. The stainless steel market throughout the NAFTA region offers significant potential, and we are now poised to further strengthen our position.” ThyssenKrupp conducted extensive due diligence and negotiations to select a location for the construction of a new facility in the US.
The process began in February 2006 with 67 potential sites in 20 states. From the initial sites, ThyssenKrupp confined its search to locations in three states: Alabama, Arkansas and Louisiana. In February of this year, the company announced that it narrowed its search to two states, Alabama and Louisiana. The decision to select Alabama was made based on the criteria the company has been using in the site selection process. Decisive factors included logistical considerations of the company's supply chain from Brazil to our projected customers; operating costs such as electricity and labor; and site-specific capital expenditures.
The new plant complex, which is scheduled to begin operations in 2010, is expected to be one of the largest private industrial development projects in the United States over the next decade. Approximately 29,000 jobs will be generated during the construction phase. When it is fully operational, the plant will employ 2,700 people. Over a 20-year period, the facility is also expected to yield tens of thousands indirect jobs. Construction is expected to begin by the end of the year. The new facility will process carbon steel and stainless steel for high- value applications by manufacturers in the US and throughout North America. The plant will serve industries including automotive, construction, electrical and utility, in addition to serving manufacturers of appliances, precision machinery and engineered products. (expansionmanagement.com)