Spanish Fort to benefit from German steel mill

By Kathy Ferniany
Sun Staff Writer
Posted 8/29/07

German steel maker ThyssenKrupp Steel and Stainless USA will employ approximately 2,700 workers at its state-of-the-art facility being built in Mt. Vernon, and area officials say Spanish Fort, as well as surrounding municipalities, should see an …

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Spanish Fort to benefit from German steel mill

Posted

German steel maker ThyssenKrupp Steel and Stainless USA will employ approximately 2,700 workers at its state-of-the-art facility being built in Mt. Vernon, and area officials say Spanish Fort, as well as surrounding municipalities, should see an increase in smaller support businesses.

The new facility, which will be on approximately 3,500 acres, will process carbon steel and stainless steel for high-value applications by manufacturers in the U.S. and North America.

Gov. Bob Riley said in May that perhaps only once in a generation will a project of this magnitude come along.

TK announced May 11 it will invest $3.7 billion in the facility.

It is expected to be one of the largest private industrial development projects in the United States over the next decade.

Bill Sisson, vice president of the Mobile Area Chamber of Commerce said, “This project will affect a large region and adjoining areas — Spanish Fort in particular — because it is so close to the site, and it provides a great opportunity for this county.”

“Baldwin County and Spanish Fort stands a chance to get some smaller support business that would be driven by the steel mill,” said Spanish Fort Mayor Joe Bonner.

Bonner said he anticipates that more people may want to live on this side of Mobile Bay due to the excellent school system.

Bonner said he had not heard of anyone working on the construction phase of the TK plant from Spanish Fort yet.

”The economic impact of TK on the Eastern Shore area of Baldwin County will be significant, as will its impact on North Baldwin County,” said Robert Ingram, president and CEO of the Baldwin County Economic Development Alliance.

Extremely high paying jobs with annual wages estimated at more than $30 million will be paid to Baldwin County employees, he said. Ingram said according to several impact studies involvement in the construction of the plant will include as many as approximately 500 residents of eastern and northern Baldwin County.

The project has gigantic proportions, Sisson said, and is the largest project that has ever come to south Alabama. The Mobile Chamber of Commerce has helped to facilitate the process from a local level, after having been contacted by the state of Alabama to participate in the process, he said.

Ingram said new tax dollars for local governments will be created by high paying jobs. Because of a large amount of shopping areas, money will also come in from TK employees from other areas to Baldwin County, he said.

Furthermore, a higher standard of living and more new jobs will will occur because there will be more customers and suppliers attracted to the area by TK, he said.

Darrelyn Bender, president of the Eastern Shore Chamber of Commerce, said TK is already moving management over here from Germany. Executives are already looking at houses on the Eastern Shore.

Because it is a huge industry, there will be small spin-off businesses, she said.

“This can only have a positive impact for the Eastern Shore including housing, businesses and retail sales,” Bender said.

Bender hopes that the community will accept the project. Since this is such a friendly area, she said she is sure the community will rally and welcome the staff from Germany and make them feel at home. The economic impact will start early when workers are hired for the construction of the facility, she said.

Bender said the starting pay at TK is higher than average for this area. “This area needs to train the work force for the existing businesses that are already here,” she said.

Bonner said because of rising gas prices, people from Spanish Fort may not want to drive for 45 minutes to an hour to get to work.

However, Bender said the pay scale would probably be the determining factor for some people to travel that distance to work.

The Eastern Shore chamber is already working on obtaining grants for technical training for the work force for existing businesses. Tens of thousands of indirect jobs over a 20 year period is also expected, according to the TK Web site.

The search for where the plant would be housed was narrowed to Louisiana and Alabama. Mt. Vernon was chosen based on TK’s logistical considerations of the company’s supply chain, operating costs, such as electricity and labor and site specific capital expenditures, officials said.

The plant site, which is on the Tombigbee River in northern Mobile County and southern Washington County, will have river, rail and road access and the plant layout will be sensitive to the environment, officials said.

The new state-of-the-art steel and stainless steel processing facility will start operations in 2010, Ingram said, “but site preparation is going on as we speak.”

For those who are interested in employment or vendor opportunities should visit the Web site ThyssenKruppNewUSPlant.com.