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ThyssenKrupp selects AL site for steel plant

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this is just a copy job of what i posted in the main AL forum this morning.

. . . . . . .

well, here it is. AL gets it! the AP is reporting the plant will cost $4.19 billion, way up from the $2.9 billion that was projected during the competition.

times-picayune article:

http://blog.nola.com/times-picayune/2007/0..._steel_mil.html

AP news flash with revised cost estimate (may not be a current link for long):

http://www.al.com/newsflash/regional/index...ist=alabamanews

thyssenkrupp press release:

http://www.thyssenkrupp.com/en/presse/art_...7679_1659377840

it was smart for thyssenkrupp to play the two sites against one another for many months - who's to say that the company's board had not decided long ago that the AL site was the only one under serious consideration? the announcement of two finalists certainly sent each states' govs and legislatures scurrying to outdo the other's with incentives packages. the whole negotiation could have been thyssenkrupp's way of getting an already-decided-upon candidate to pony up as much incentive as possible before announcing the decision and entering final negotiations. if that's true, it really wouldn't have mattered if louisiana had offered $3 billion in incentives, since the competitive phase, from TK's point of view, would have already been over.

again, who will ever know? i have no complaints.

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Congrats to Mobile County and the state. The only thing that seems a bit odd is that the steel will have to be shipped up river a ways

or down to get to the big ships

I felt Alabama had won this thing a while back as well, because it seemed Louisiana was always reacting to what Alabama did.

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This will be huge for so many reasons :

* Gives metro Mobile tremendous momentum (RSA Tower + the steel plant = incredible 1-2 punch)

EDIT: I completely forgot about the aerospace deal.

* Further establishes Mobile as the "big city" along its stretch of Gulf Coast. For the most part, the rest

of the central Gulf Coast is dominated by tourism or the military. Mobile's increasingly diverse economy

gives it a distinct presence within its region.

* This is probably the biggest thing to happen to Washington County, where good jobs have been scarce

forever. The commute to the new plant in northern Mobile County is very short.

* North Mobile County (and north Baldwin) is about to see unpredecented levels of development, thanks to

Thyssen-Krupp + the Earnhardt racing complex. The timing of this is great, also, because the GOZone

is still in effect.

* The massive steel factory solidifies Alabama's strong role in the steel and automotive industries,

and sends a message that Alabama is "open for business."

I despise having to leave Alabama at a time when I feel the state is finally starting to turn the corner.

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Outstanding news for Mobile and the State. Alabama's certainly landed some major developments over the last decade or so. I hope that this makes other businesses continue to look strongly at Alabama for expansions and/or relocations. I think they've already been doing that, but this victory for Alabama bolsters that position even further.

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I despise having to leave Alabama at a time when I feel the state is finally starting to turn the corner.

i feel you on that. i was in the same situation this time last year with a move across the country. as it has turned out, i'm making an attempt to get back into the game in AL, since i feel i ought to have a stake in this state's welfare. i always care more about what happens here, and i hate being away from AL and hearing good news about its growth. there's much to complain about, but there's also much to embrace - especially once you've lived in a few of the other places in this great land that everyone considers appealing. the south rocks.

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This will be huge for so many reasons :

* Gives metro Mobile tremendous momentum (RSA Tower + the steel plant = incredible 1-2 punch)

EDIT: I completely forgot about the aerospace deal.

* Further establishes Mobile as the "big city" along its stretch of Gulf Coast. For the most part, the rest

of the central Gulf Coast is dominated by tourism or the military. Mobile's increasingly diverse economy

gives it a distinct presence within its region.

* This is probably the biggest thing to happen to Washington County, where good jobs have been scarce

forever. The commute to the new plant in northern Mobile County is very short.

* North Mobile County (and north Baldwin) is about to see unpredecented levels of development, thanks to

Thyssen-Krupp + the Earnhardt racing complex. The timing of this is great, also, because the GOZone

is still in effect.

* The massive steel factory solidifies Alabama's strong role in the steel and automotive industries,

and sends a message that Alabama is "open for business."

I despise having to leave Alabama at a time when I feel the state is finally starting to turn the corner.

I think your right on there Druid, especially for Washington County, Clarke and north Baldwin Counties.

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Between the Mobile mega-projects and the incredible Huntsville boom, it's hard to imagine much

hotter cities in that size category anywhere. I know one professor here who just got a job in

Huntsville making triple the salary.

Most of the state's "little cities" seem to have it together pretty well, too, compared to similar-sized cities

elsewhere. It's no longer rare to see places like Auburn,Decatur, Dothan, or Tuscaloosa on

one of those "lists."

I'm still waiting for Birmingham's big breakthrough, though. If it gets rolling, too, then

the whole state will be charged up.

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Congrats to Mobile County and the state. The only thing that seems a bit odd is that the steel will have to be shipped up river a ways

or down to get to the big ships

I felt Alabama had won this thing a while back as well, because it seemed Louisiana was always reacting to what Alabama did.

If they choose the LA, it's even further up a river than the site in Mobile. It was north of NO in LA and NO is already a long ride up the river from the Gulf of Mexico.

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I'm still waiting for Birmingham's big breakthrough, though. If it gets rolling, too, then

the whole state will be charged up.

Depends on what you look at... some magazines have rated Birmingham among the Top 25 cities for business expansion... others have Birmingham sub 200 in the rankings.

What I do know is that even Birmingham is (economically speaking) doing far better than in years. I know Birmingham is one of the Top 10 for increasing income over the last decade or so. Birmingham also has one of the lowest unemployment rates in its history. There are billions of dollars in projects and development just in Birmingham city limits (not including the whole metro). So really, the whole state is on fire. I am anxious to hear more about the Isuzu plant in Birmingham and also to know whether Birmingham will land the $400-million biomedical vaccine plant (Birmingham's one of about 3-4 finalists).

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Here's a graphic for where it will be located...

051107alabamasite.jpg

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thanks for the graphic, blazer. the TK site is right off U.S. 43?

to add to your comments about birmingham, the bham news did a story on sunday about home values in the metro area surging ahead at a time when many of the artificially 'hot' regions throughout the country have cooled off or crashed.

and another very successful small town in alabama is cullman, whose city economic development agency for a decade now has been rated highly in annual assessments by site selection magazine. its organization of its industrial parks - specifically its commitment to aggressive spec building and infrastructure development - has landed the city a lot of newer industries, many of which fill crucial roles in the automotive manufacturing supply chain. cullman's economic development officials, peggy smith and dale greer, are true professionals who defy the preconceptions of outsiders who expect ignorant hick representation for the state's rural communites.

watching the press conference for the thyssenkrupp plant just now, i was struck by the quality of leadership in the mobile region. i had never heard jo bonner speak publicly before - what a thoughtful man (or maybe it's just his speech writer). as i watched the mayor and one of the county commissioners speak (and know just what to say), i wondered if birmingham-region residents could imagine similar words coming out of collins' or kincaid's mouths. leadership is so crucial to bham's success, and this press conference was a nice little snapshot of how far bham has yet to go. most of bham's progress happens because it abounds in so many other important ingredients for success - just about all the other elements are in place. the city's success often happens in spite of its poor leadership. imagine what could happen in bham if it had a core of leaders who put the region first and knew how to interact with other key figures.

what a ringmaster bob riley is. if you hate him for other reasons, you still can't fault him when it comes to his emphasis on economic development in this state. on this TK deal, he really had to scurry to build good will among a lot of different groups and individuals, and often had to go back and put out fires after he thought he had gotten all parties to agree (witness the 11th hour negotiations with our asinine legislators a couple of days ago). he's a consensus builder in a state where that seems, at times, impossible.

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Depends on what you look at... some magazines have rated Birmingham among the Top 25 cities for business expansion... others have Birmingham sub 200 in the rankings.

What I do know is that even Birmingham is (economically speaking) doing far better than in years...

That's very true. I'm thinking mainly in terms of that one "big" thing that makes people all over the country

really take notice, like Huntsville with its BRAC gains or Mobile with its signature tower and the $4-billion

steel plant.

I love Birmingham and its potential (and all of the really good small-to-pretty-large improvements

going on), but I think its really big breakthrough, in whatever form it takes, has yet to arrive.

Whenever it does, Birmingham should resume its rightful place in the region alongside the Nashville,

Charlotte, Jacksonville level cities.

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Another shot in the arm for Alabama, and a gigantic boost for Mobile!

According to a vice-chair of TK's board, factors that played a role in the decision included:

  • better transportation from the Brazilian slab mill and to end users in the US, Canada and Mexico
  • lower utilities, labor and operating costs
  • lower site preparation costs

Mobile Press-Register blog: Governor, ThyssenKrupp executives hail new steel mill

earlier Press-Register post: Mobile County wins ThyssenKrupp plant

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Congrats to the Mobile area for landing this big fish! :thumbsup:

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Depends on what you look at... some magazines have rated Birmingham among the Top 25 cities for business expansion... others have Birmingham sub 200 in the rankings.

What I do know is that even Birmingham is (economically speaking) doing far better than in years. I know Birmingham is one of the Top 10 for increasing income over the last decade or so. Birmingham also has one of the lowest unemployment rates in its history. There are billions of dollars in projects and development just in Birmingham city limits (not including the whole metro). So really, the whole state is on fire. I am anxious to hear more about the Isuzu plant in Birmingham and also to know whether Birmingham will land the $400-million biomedical vaccine plant (Birmingham's one of about 3-4 finalists).

Birmingham has done an outstanding job at turning itself around. It's not easy for a city to digest itself and turn itself inside out and nearly completely change the type of economy that operates in an entire region.

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what a ringmaster bob riley is. if you hate him for other reasons, you still can't fault him when it comes to his emphasis on economic development in this state. on this TK deal, he really had to scurry to build good will among a lot of different groups and individuals, and often had to go back and put out fires after he thought he had gotten all parties to agree (witness the 11th hour negotiations with our asinine legislators a couple of days ago). he's a consensus builder in a state where that seems, at times, impossible.

According to an article in today's Montgomery paper, Riley's behind the scenes troubleshooting and salesmanship played a substantial role in TK's decision. ThyssenKrupp vice chairman Peter Urban said Gov. Riley distinguished himself with his rapid response to the company's questions and concerns. "It was much faster than in every other state," Urban said.

Having to transfer the Brazilian steel slabs onto barges and haul them upriver to the plant site added an extra step and expense, and could have been a deal-breaker. Riley pointed out that the additional cost could be recouped by the ships hauling steel slabs north being reloaded with Alabama coal, used in the Brazilian plant, for the trip back south.

Montgomery Advertiser: Riley's support key to landing plant

---

From today's Mobile Press-Register:

German steelmaker picks Mobile for 2,700-worker plant

An Alabama record $811 million incentive package doesn't include a 30-year corporate income tax credit of up to $185 million per year, which could push the package into the billions. The city of Mobile promised $33.5 million, and Mobile County could pay up to $53.5 million, though Mobile County Commissioner Stephen Nodine said the county's total could be much higher.

Louisiana offered even more incentives, close to $2 billion, to offset the extra cost of building on Louisiana's weak soil.

Incentives to steelmaker break state record

The new plant will bring major changes to the small town of Calvert in north Mobile County.

At Bee-Hive Cafe, ThyssenKrupp news creates buzz

What is now ThyssenKrupp dates to 1811, when Friedrich Krupp began making cast steel. Krupp's stainless steel was used in the construction of NYC's Chrysler Building and Empire State Building. Krupp merged with the Thyssen Group in 1999. More company info in the article below.

ThyssenKrupp built on decades of innovation

---

Video links:

Thyssen Krupp chooses Alabama

Thyssen Krupp unveils plans for South Alabama plant

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This is good news for the entire region. I guess all of us look forward to the development of north Mobile County, after all the new racetrack and the steel mill will push growth into the next decade.

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The stories in today's papers focus on job creation and the affect on the area labor pool, the role the port authority played in the deal, and the efforts of Gov. Riley and state industrial recruiters.

Neal Wade at the Alabama Development Office predicted that the plant would generate a total of about 7,000 permanent jobs with spinoffs included. There won't be as many supplier jobs as with the auto plants.

Mobile Press-Register:

Montgomery Advertiser:

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Everyone in the ADO should be given a 20% raise.

They ranked 1st in the nation in 2005.

They ranked 1st in the nation in 2006.

With this project they will rank 1st in the nation in 2007.

And with the projects lined up they may be first in 2008.

If we are not doing so already we should tie their compensation to results, and as of now they are producing.

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Everyone in the ADO should be given a 20% raise.

They ranked 1st in the nation in 2005.

They ranked 1st in the nation in 2006.

With this project they will rank 1st in the nation in 2007.

And with the projects lined up they may be first in 2008.

If we are not doing so already we should tie their compensation to results, and as of now they are producing.

Wow, I didn't know they were THAT good. Apparently they are though, lol. I agree, give them all a raise. Take the legislature's raises and give it to them. If that doesn't give them a big enough raise. Just take a bit of money out of the department that's killing Alabama, ALDOT, it's not like their using any money anyways.

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ThyssenKrupp will have to employ 2,000 people for two years to reap the entire $811 million incentives package from state and local governments. The incentives package includes $461 million upfront -- $314 million in cash, $67 million for training, $45 million for land purchases and $25 million for road building.

The agreement also includes a provision that appears to be a commitment from state government to never seek the kinds of legislation that have been proposed elsewhere to deal with global warming: "In the event that state legislation is introduced that adds a new tax on energy, (carbon dioxide) or the use of electricity, natural gas, coal or industrial gases, the state shall use its best efforts to (1) defeat such legislation or (2) seek an amendment to such legislation providing the company an exemption therefrom."

Mobile Press-Register: Steel mill incentives bargain signed

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Experts have different ideas about how ThyssenKrupp will find 2,700 qualified workers for the steel plant that will open in three years, but none doubt that they will find them, despite Alabama's 3.3 percent unemployment rate.

Some experts see workers coming from rust belt states where the steel industry is in decline. Some may be Alabama residents pushed out of textile and other manufacturing jobs when industries left the state. Some might be workers at other Alabama companies, who see an opportunity for better wages and benefits. Others may come from neighboring states.

The Mobile Chamber of Commerce says it has already received more than 500 resumes for jobs at the steel mill, even though hiring won't begin for another couple of years. Almost a third of those resumes are from outside the Mobile area.

Details in the article.

Montgomery Advertiser: Low unemployment rate shouldn't hinder hiring process

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According to a new report from state economic development officials, five out of every six dollars that the ThyssenKrupp steel mill will pay in wages and expenses in Alabama will end up in Mobile County. About 11 percent would end up in Baldwin County, and less than 2 percent in Washington, Clarke, Monroe and Escambia counties.

The study shows that more than 19,000 of 24,000 construction workers will live in Mobile County. The plant and related companies will create about 7,000 permanent jobs, with more than 5,500 of those workers living in Mobile County. Baldwin County will see more than 2,500 construction workers and nearly 750 permanent workers.

The six counties in the report account for over 96% of the total construction and permanent workforce projected to be generated by the plant. The remaining workers will live in Mississippi, Florida or other Alabama counties.

Details in the article.

Mobile Press-Register: Report: Mobile County will gain most from steel plant

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Alabama voters on overwhelmingly approved an amendment to allow an additional $400 million in bond money to recruit employers to the state, including $195 million for the Thyssen-Krupp steel mill in north Mobile County. Ninety percent of Mobile County votes were in favor of the amendment.

Mobile Press-Register: Voters approve bond amendment to help fund steel mill

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