Cabinet for Economic Development
Gov. Beshear Celebrates TMK IPSCO Investment, Breaks Ground for Ferrous Metal Processing in Northern Kentucky
Partnership helps retain nearly 300 Kentucky jobs, adds 20 more and creates a
$27.6 million investment in the region
WILDER, Ky. (Dec. 7, 2011) – Governor Steve Beshear today 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 a $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 $15.6 million reinvestment project is the recruitment of Ferrous Metal Processing, which will locate on an adjacent property.
“Together, the investments made by TMK IPSCO and the commitment that Ferrous Metal Processing has made to the Wilder location are a strong testimony to the diverse advantages that Kentucky’s business climate and quality of life has to offer,” Gov. Beshear said. “Companies like Ferrous Metal Processing will continue to choose Kentucky as a place to invest and expand, and companies like TMK IPSCO will continue to make investments in their Kentucky communities. We are pleased to be part of their success stories.”
TMK IPSCO and Ferrous have entered into an agreement for the installation of a new slitting line, bringing 20 new jobs and an additional $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 today on the soon-to-be constructed 43,000-square-foot building, which is expected to start commercial production in the fall of 2012.
“We are very excited to be continuing to expand our operations in Northern Kentucky,” said Vicki L. Avril, president and CEO of TMK IPSCO. “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.”
“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,” said Ferrous President Ed Gonzalez. “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.
“These investments speak to the commitment of the companies to our area and to the work ethic of our people,” said Sen. Katie Stine, of Southgate.
“This is great news for our community, and I am certainly pleased that TMK IPSCO and Ferrous are taking this step to invest in us and that the state could play a role in making it happen. This is like an early Christmas present,” said Rep. Dennis Keene, of Wilder.
“TMK-IPSCO is important to the economic well-being of Northern Kentucky, and we are grateful for their capital investment at the Wilder facility,” said Steve Pendery, Campbell County Judge-Executive and past chairman of Northern Kentucky Tri-ED. “The locating of Ferrous Metal Processing within our community and their relationship to TMK-IPSCO is meaningful.”
“The steel plant has been a part of Wilder for as long as Wilder has been a city,” said Wilder Mayor Stanley Turner. “I am pleased that this long-standing company is expanding and creating jobs during these tough economic times. Additionally, a new company, Ferrous, locates to Wilder in conjunction with IPSCO. We are fortunate to have them in our city as we continue to work together by helping our existing companies expand.”
For more information on IPSCO, visit www.tmk-group.com. For more information on Ferrous Metal Processing, visit www.ferrousmetalprocessing.com.
Information on Kentucky’s economic development efforts and programs is available at www.ThinkKentucky.com. Fans of the Cabinet for Economic Development can also join the discussion on Facebook at www.Facebook.com/ThinkKentucky or follow on Twitter at www.Twitter.com/ThinkKentucky.
A detailed community profile for Northern Kentucky can be viewed at http://thinkkentucky.com/EDIS/cmnty/index.aspx?cw=049.