Tenaris SAs new seamless oil country tubular goods mill
in Bay City, Texas, has been approved for an incentive package
by the states Matagorda County.
Under the agreement,
the company wont have to pay property tax on the plant,
including "machinery, equipment, inventory and supplies
installed, added, replaced, upgraded or used on the premises by
or for (the) company" beyond "the assessed value of such land
for the 2013 tax year" for the first 10 years after the start
of plant construction.
The base value for the
land is given as roughly $3.89 million. The tax abatement is
subject to the company employing 600 people by the end of 2017,
paying combined wages of $39.6 million annually and spending
more than $1.31 billion in project outlays, according to the
The county can claw
back taxes if the Luxembourg-based pipe and tube maker fails to
meet its employment goal, as well as employment marks along the
Tenaris also will get
all ad valorem taxes on inventory and base year taxes,
as well as 50 percent each of replacement asset taxes and new
asset taxes, rebated by the county for a further 15 years if it
continues to meet employment marks, according to county
attorney Denise Fortenberry.
The county also has
committed to apply for infrastructure grants to the tune of
$2.5 million that "will support and benefit the project," the
Matagorda County also
has opted to exempt from export duties goods that stay within
the state in the "short term," Fortenberry said.
Tenaris, which has
committed to finishing the 600,000-tonne-per-year operation by
the end of 2017, declined to comment.