Governor Mr Steve Beshear joined community leaders and officials from TMK IPSCO and Ferrous Metal Processing to celebrate a partnership that will retain nearly 300 Kentucky jobs, bring 20 new jobs and entail USD 27.6 million capital investment in Northern Kentucky.
With the assistance of state tax incentives approved earlier this year, pipe producer TMK IPSCO is making a number of new investments at its Wilder facility that will support the retention of 298 Kentucky jobs. The latest success of the company’s USD 15.6 million reinvestment project is the recruitment of Ferrous Metal Processing, which will locate on an adjacent property.
TMK IPSCO and Ferrous have entered into an agreement for the installation of a new slitting line, bringing 20 new jobs and an additional USD 12 million investment to the region. Ferrous will own and operate the new facility and slit steel coils for TMK IPSCO on a toll basis. The companies have entered into a 12 year contract in which Ferrous will provide 100 percent of TMK IPSCO’s slitting needs for the production of pipe at the Wilder plant.
Officials broke ground on the soon to be constructed 43,000 square feet building, which is expected to start commercial production in the fall of 2012.
Mr Vicki L Avril president & CEO of TMK IPSCO said “We are very excited to be continuing to expand our operations in Northern Kentucky. Between the government support and the talented workforce here, we should be able to turn what has been a struggling operation into one that is financially viable, superior in quality and competitive in our industry. It’s a win for the state, for this community, for our company and for these employees.”
Mr Ed Gonzalez president of Ferrous said “Our long experience in toll processing for IPSCO makes this a natural step for us and for TMK IPSCO. We are proud to have an opportunity to enhance TMK IPSCO’s reputation as a premier supplier of ERW pipe. We are also very pleased with the efforts and assistance provided by our hosts in Kentucky, as they have worked hard to make our entry into the Wilder location go smoothly.”
To encourage the economic development opportunities in Northern Kentucky, the Kentucky Economic Development Finance Authority (KEDFA) preliminarily approved TMK IPSCO for tax incentives up to $5 million through the Kentucky Reinvestment Act. Ferrous Metal Processing received preliminary approval by KEDFA for up to $400,000 in tax benefits through the Kentucky Business Investment Program.
