$108M steel tubing facility to create 58 jobs - The Dispatch

2022-07-16 02:07:07 By : Mr. Edwin Cheng

A steel tubing manufacturer broke ground Thursday on a $108 million facility on the Steel Dynamics Inc. campus in west Lowndes County.

Altex Tube will build a manufacturing plant and house its corporate headquarters at the site on Airport Road. The operation is expected to create 58 jobs, paying employees an average of $72,000 annually, according to Altex Tube President and CEO Zach Smith.

“We’re doing the best of the best and it’s going to be a first-class facility, putting out first-class products and we are looking forward to servicing our customers,” Smith told a crowd of about 130 gathered Thursday for the groundbreaking ceremony.

Construction is expected to begin this fall and manufacturing should be underway by mid-2023. The project received a $1.7 million grant from the Mississippi Development Authority to aid in site preparation. The Lowndes County Industrial Development Authority will grant an additional $150,000 for water and sewer improvements at the plant.

The structural steel tubing that Altex will produce has a variety of uses in architecture, construction and equipment manufacturing, Golden Triangle Development LINK CEO Joe Max Higgins said. It can be used in anything from the frame of a bike to water pipes running underneath a house or even the metal tubing in agricultural equipment like tractors.

Altex will use black and pre-galvanized steel coil products from SDI to manufacture the tubing. Black steel has not been coated with zinc or paint. Pre-galvanized steel is processed and coated before being sized and cut into tubes.

Smith said he and his team have been interested in the Lowndes County location for a few years. The company contacted SDI about a proposed partnership and construction of the facility in mid-2021. SDI leadership then asked the LINK for assistance with the deal. The site for the Altex Tube steel tube manufacturing plant. The site is right next to the Steel Dynamic steel mill and has been under preparation for plant construction. Grant McLaughlin/Dispatch Staff

“We started talking about where we were going to locate it, what we were going to do, working with the governor’s office and started working on all of the training,” Higgins said.

Gov. Tate Reeves, along with state legislators, county supervisors, MDA and company officials attended the groundbreaking. Multiple speakers addressed the positive environmental impact the site’s proximity to SDI will bring, since it will reduce freight and fuel costs associated with moving product.

“There are no more shipping costs, which is good for the environmental footprint for making steel-making tubes,” SDI general manager Dan Keown said. “The advantage for us is we now have an on-site customer where we can ship directly without having to arrange trucks or having to arrange rail cars, so it helps our logistics a lot.”

Keown said he is thankful for the attendance drawn to the groundbreaking.

“There are lots of business partners here to support. We appreciate everything you’re bringing to this,” Keown said. “It’s a great day for us but we’re looking forward to the day a year from now.”

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