Friday, May 11, 2007

German steelmaker chooses Alabama for plant

Steelmaker ThyssenKrupp AG said Friday it will build a new $4.19 billion steel plant in Alabama, which has attracted other German companies including DaimlerChrysler AG in recent years.

The plant -- scheduled to open in 2010 and employ as many as 2,700 workers when fully operational -- will be near Mobile. The company was lured by several tax breaks and a $400 million incentives package.

The Duesseldorf-based company chose Alabama over Louisiana, which also had offered tax breaks.

It would be the company's first steelmaking operation in the United States, processing carbon steel and stainless steel for automakers, electrical companies, appliance manufacturers and more.

The new plant would be "an integral part of the company's plan to increase growth in the steel and stainless steel division in North America and Europe," supervisory board chairman Ekkehard Schulz said in a statement.

The company said that once the plant is up and running, it could create as many as 38,000 new jobs related to the mill, from suppliers to transportation to dining and entertainment.

Low-cost slabs will be supplied from a new steel mill in near Rio de Janeiro that is scheduled to start production in 2009 with a capacity of 5 million tons of slabs per year.

Link to Business week.


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