ThyssenKrupp said Wednesday it is proceeding with the development of a $2.9 billion steel and stainless steel manufacturing and processing facility in the United States and has narrowed the search to Alabama and Louisiana.
During construction, the facility will create approximately 29,000 jobs, and when fully operational the plant will employ 2,700 people. The complex is expected to begin operations in 2010.
The German industrial conglomerate said it had been conducting due diligence and negotiations with Alabama, Arkansas and Louisiana during the last several months. Arkansas was eliminated from consideration based on the criteria the company had been using during the site selection process.
The new facility will manufacture and process carbon steel and stainless steel for manufacturers throughout North America. The plant will serve industries including automotive, packaging, construction, electrical and utility, appliances, precision machinery and engineered products.
The company’s decision to narrow the search to Alabama and Louisiana was based on several factors, including geological characteristics that would impact plant design and construction costs, energy costs and logistical considerations.
“Arkansas made an excellent proposal, and has many important and valuable attributes for business development,” said Peter Urban, Vice Chairman of the Executive Board of ThyssenKrupp Steel. “However, based on the criteria we developed after much study, we are moving forward with Alabama and Louisiana at this time.”
The facility will have an annual capacity of 4.5 million metric tons of end products. Additionally, a stainless steel melt shop will be built with an annual capacity in the first phase of up to one million metric tons of slabs. A cold rolling facility will be built, which will initially produce 325,000 tons of cold strip and 100,000 tons of pickled hot strip.
ThyssenKrupp has not yet made a decision about the final site, but expects to complete the site selection process soon.
“We are still reviewing a wide range of factors,” Juergen Fechter, Chairman of the Executive Board of ThyssenKrupp Stainless said. “Public officials in all three states have been extraordinarily cooperative and responsive as we have conducted our review and analysis.”