Guru
August 29th, 2008, 05:32 AM
http://myweb.cableone.net/columbuspacket/
In recent years China has taken over a great deal of the steel market from the United States. A new company in Columbus, Ms. hopes to take some of this market back.
SeverCorr Phase II Now Set to Begin
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At yesterday’s grand opening of the Mid-South Industrial Service facility, local leaders learned that SeverCorr has closed with lenders on funding for Phase II of the SeverCorr project. Phase II is expected to cost about $500 million and includes the construction of a second melt shop and expansions of the rolling mill and cold mill.
Link Director Joe Higgins said that “virtually a whole new plant will be added on to the present plant.” He said that some of the vast steel walls will be moved outward to make room for the new furnace.
Higgins said that Go-Zone incentives will allow SeverCorr to borrow money at a low rate of interest because the lenders won’t have to pay taxes on the interest. He said that the State of Mississippi will grant $7.5 million to the project for infrastructure development. The money will be spent on a new well, building “Baghouse Road” and expanding the rail network to encircle the plant. He said that a concrete road will also be added for transporting coils of steel from the plant to the nearby Heidtman and New Process plants. The steel is now being transported to these plants over a rock road, which generates dust that contaminates the rolls of steel.
Coils are carried from the plant to Heidtman and New Process on special machines that carry six coils each. The new road will have reinforced concrete 18 inches thick to support the heavy coil carriers.
Higgins said that Phase I of the SeverCorr project totaled $956 million. He said that Phase II should lead to additional investments by Heidtman, New Process, Linde and at least one other company totalling $125 million. These investments will be included with SeverCorr’s $500 million investment when calculating the annual fee the companies will pay Lowndes County and the Lowndes County School District in lieu of taxes.
Higgins said that SeverCorr made its first fee-in-lieu payment to the county and the county school district in February: $2.8 million (it will be split equally between the two entities). The SeverCorr Phase I fee-in-lieu is expected to rise to $4.3 million next year and stay at that amount through year 10. SeverCorr (and the satellite companies) will pay $2.35 million per year (at minimum) for Phase II to the county and the county school district (split evenly) beginning in 2011. So, Higgins pointed out, the county and county schools will be splitting about $6.6 million from SeverCorr Phases I and II for seven years .
In recent years China has taken over a great deal of the steel market from the United States. A new company in Columbus, Ms. hopes to take some of this market back.
SeverCorr Phase II Now Set to Begin
--------------------------------------------------------------------------------
At yesterday’s grand opening of the Mid-South Industrial Service facility, local leaders learned that SeverCorr has closed with lenders on funding for Phase II of the SeverCorr project. Phase II is expected to cost about $500 million and includes the construction of a second melt shop and expansions of the rolling mill and cold mill.
Link Director Joe Higgins said that “virtually a whole new plant will be added on to the present plant.” He said that some of the vast steel walls will be moved outward to make room for the new furnace.
Higgins said that Go-Zone incentives will allow SeverCorr to borrow money at a low rate of interest because the lenders won’t have to pay taxes on the interest. He said that the State of Mississippi will grant $7.5 million to the project for infrastructure development. The money will be spent on a new well, building “Baghouse Road” and expanding the rail network to encircle the plant. He said that a concrete road will also be added for transporting coils of steel from the plant to the nearby Heidtman and New Process plants. The steel is now being transported to these plants over a rock road, which generates dust that contaminates the rolls of steel.
Coils are carried from the plant to Heidtman and New Process on special machines that carry six coils each. The new road will have reinforced concrete 18 inches thick to support the heavy coil carriers.
Higgins said that Phase I of the SeverCorr project totaled $956 million. He said that Phase II should lead to additional investments by Heidtman, New Process, Linde and at least one other company totalling $125 million. These investments will be included with SeverCorr’s $500 million investment when calculating the annual fee the companies will pay Lowndes County and the Lowndes County School District in lieu of taxes.
Higgins said that SeverCorr made its first fee-in-lieu payment to the county and the county school district in February: $2.8 million (it will be split equally between the two entities). The SeverCorr Phase I fee-in-lieu is expected to rise to $4.3 million next year and stay at that amount through year 10. SeverCorr (and the satellite companies) will pay $2.35 million per year (at minimum) for Phase II to the county and the county school district (split evenly) beginning in 2011. So, Higgins pointed out, the county and county schools will be splitting about $6.6 million from SeverCorr Phases I and II for seven years .