NEW YORK Tube City IMS LLC is setting up a $23-million facility on the site of ThyssenKrupp Stainless USA Inc.s Calvert, Ala., plant in order to support the melt shop start-up in December.
The facility will sort, prepare and process scrap, according to Claudia Zimmerman, director of economic development for the Mobile Area Chamber of Commerce.
A spokeswoman for ThyssenKrupp Stainless confirmed the details of Tube Citys plans outlined by Zimmerman, adding that the development is "great news for job creation for our local area." She also said that supplier relationships in the area were developing "as we planned."
The facility will employ up to 68 people in its first three years of operation and is expected to expand, Zimmerman said. In return, Tube City will receive about $1.6 million in sales and property tax abatements for the facility over a 10-year period from the Mobile County Industrial Development Authority.
Tube City declined to comment.
The Glassport, Pa.-based company provides scrap purchasing, optimization and inventory management services, according to its website.
Executives from Tube Citys parent company, Pittsburgh-based scrap broker and mill services provider TMS International Corp., said during its recent first-quarter earnings call that the company had added two contracts to provide mill services worth $179 million (AMM, May 8).
One of the contracts was for stainless-steel slag services at a mill in Alabama, company executives said.
ThyssenKrupp Stainless melt shop will be able to produce between 900,000 and 1 million tonnes of stainless slabs per year (AMM, Dec. 14, 2010).
Editor's note: This story originally listed ThyssenKrupp Stainless' volume in tons rather than tonnes.