Aluminum mill officials announce Louisiana site
Post Date: 25 Feb 2015 Viewed: 298
An aluminum company that based its offices in Columbus last year will locate a proposed $2.4 billion aluminum manufacturing complex in Louisiana.
American Specialty Alloys announced Friday in a news release that the site is a 1,200-acre mill complex formerly operated by International Paper in Rapides Parish near Pineville, Louisiana. The complex will employ roughly 1,500 jobs, according to ASA.
ASA officials say several states were considered for the plant, including Mississippi. An offer for 826 acres in Lowndes County was pulled by the Golden Triangle Development LINK after officials said ASA's CEO, Dr. Roger Boggs, wouldn't answer questions about the project, which ASA initially indicated would be worth $1.2 billion and employ up to 850 people.
LINK CEO Joe Max Higgins told The Dispatch last week that several Golden Triangle ASA investors had contacted him about concerns over the company's future. Higgins and anonymous sources who contacted The Dispatch said lawsuits are likely pending.
ASA on Friday said the 1.4 million square-foot plant in Louisiana would make more than 600,000 tons of aluminum sheet and plate each year, with operations planned to start in late 2016.
"When the IP mill closed several years ago, we pledged that we would work on securing a project that would bring good jobs back to that location," Gov. Bobby Jindal said in a statement. "We are excited that ASA has announced plans to invest in Central Louisiana and take advantage of Louisiana's strong business climate and world-class workforce."
The Louisiana Department of Economic Development offered ASA a performance-based grant of $34 million to offset site-related infrastructure costs, payable in installments upon the company meeting capital investment and payroll targets. State officials also approved ASA's use of the LED FastStart job-training services.
In addition, the company is expected to utilize Louisiana's Quality Jobs and Industrial Tax Exemption programs.
The Quality Jobs program provides an eligible company a cash rebate of up to 6 percent of its annual payroll for as long as a decade. The Industrial Tax Exemption offers abatement of local property taxes for a decade on its new facilities.
In addition, the Red River Waterway Commission authorized creation of a new port to serve the mill.
"We spent considerable time and resources looking at potential candidates across the Southern states, a strategic area for our operations, suppliers and customers," Boggs said in a statement.
"Our needs were specific, based on our project budget, requirements and constraints. We studied many factors essential to the project success, including property characteristics, community engagement, workforce readiness and the quality and support of local service providers. In Louisiana, we found a high level of coordination and cooperation among state agencies and with local site-service providers."