U.S. Steel to make $277.5 million capital investment into Jefferson County area facilities
18 March 2015
A Jefferson County Commission committee today approved tax abatements on $277.5 million in capital investments on two U.S. Steel projects that have the potential to save hundreds of jobs, county officials said.
The first project would allow U.S. Steel Corp. to invest $230 million in an electric arc furnace technology for an existing steel mill just outside of Fairfield.
Electric arc furnaces are being used instead of the antiquated blast furnaces.
The tax abatement would be $775,000 annually in state and county property taxes over 10 years, according to county data.
The second project, by U.S. Steel's Oilwell Services, would create a coupling manufacturing facility for tubular products in Fairfield with a capital investment of $47.5 million.
The tax abatement would be $162,000 annually in state and county property taxes over 10 years, according to records.
The full commission will vote Thursday on the proposals.
"US Steel's decision to invest more than $275 million to install new technology at Fairfield Works is a testament to the progress Jefferson County is making in successfully competing for jobs with other states," Commissioner David Carrington said.
U.S. Steel announced in January it would lay as many as 1,840 Alabama workers off at it idles a furnace at its Fairfield operations. It has also announced layoffs in Texas and Minnesota.
The company attributed the layoffs to changing market conditions and a drop in oil prices.
The county competed with Arkansas, Texas, Ohio and other states for the projects, Carrington said.
"The alternative would have been U.S. Steel in Jefferson County would have gone down to some 300 employees" from the 2,100 currently there, he said.
Source : http://www.al.com/