< Previous146 JANUARY 2024 SITE SELECTION BY THE NUMBERS ALABAMA Higher Ed. R&D Expenditure in $000s:1,434,118 Number of NCRCs:357,079| Percent Improved 2022–23: 11.90% Business Tax Climate Rank Change 2023–2024: +2 Industrial power cost per kWh: $7.72 Total Rev. as Share of Total Expenses, FY 2007-21: 102.8% 2023 Workers’ Comp Index Rate: 1.38 Selected Top Projects by Capital Investment COMPANY CITY INVESTMENT $M Ingka Investments B.V. Walker County 525 Anovion Colbert Cnty. 400 Kronospan Oxford 350 Walmart Cullman 350 Hyundai Montgomery 290 Source: Conway Projects Database Nucor plans to expand its Tuscaloosa operations to begin production of a new type of steel plating. Image courtesy of Nucor Corporation Advancement of production and R&D capabilities. Advancement of new product off erings and renewable energy solutions. And most importantly, advancement of workforce development. Trust and support are at the heart of many long-term business investment decisions and show why global industry leaders have chosen to have it “Made in Alabama.” Fits The Strategy It’s not Alabama’s fi rst rodeo when it comes to landing manufacturing investments, regardless of industry sector. Within the metals manufacturing sector specifi cally, the state carries a rich history tied inextricably to the state’s rich mineral deposit history. As of , Alabama boasts more than , primary metal companies throughout the state and supports a workforce of over , between primary and fabricated metal manufacturing. 148 JANUARY 2024 SITE SELECTION Industry leaders like Novelis and Steel Technologies have flocked to construct and operate here, anchoring their trust in the state’s capabilities. In 2022 alone, the Alabama Department of Commerce reported that Alabama was the ideal location for nearly $2.9 billion in sector investment and saw $1.8 billion for exports of primary and fabricated metal products. Nucor Corporation is not new to the neighborhood by any means, having operated in Tuscaloosa since acquiring Corus Tuscaloosa in 2004. Almost 20 years later, Nucor plans to bring new life and purpose to its facility. In November 2023, the company announced that its board of directors had approved a $280 million expansion at its Tuscaloosa steel plate mill. The company has strategic plans for the East Coast with the recent opening of its $1.7 billion Brandenburg, Kentucky, steel mill as well as its 23-year-old plate mill in Hertford County, North Carolina. “The modernization upgrade here in Tuscaloosa supports our overall plate strategy with the commissioning of our new plate in Brandenburg and with the offerings from our plate mill in Hertford County. This upgrade supports both of those and allows us to as a Plate Mill Group to really capture all of the available plate markets that are out there,” says Nucor Tuscaloosa Project Manager Alex Farinelli. Main markets for the company include power transmission, the railcar industry, highway trailers and heavy equipment in general, according to Farinelli. Customers within these markets are on the hunt for a new material that strays from traditional steel plates they use today, and Nucor is making that wish a reality. “What we’re seeing across multiple markets is that our customers are wanting their product to be as strong or stronger than it is today, but they want it to be lighter. So, with this upgrade, we will have the ability to produce a lighter-gauge, stronger material than what we currently produce today,” says Farinelli. Leveraging the production capabilities shared among these three locations, Nucor’s Plate Mill Group will have a capacity of 3 million tons of steel plating per year. The expansion is expected to be complete and operational by mid-2027. “This upgrade in Tuscaloosa springs us online technologically and competitively with what I would argue are the two most capable plate mills [Brandenburg and Hertford County] in North America that Nucor also owns,” says Farinelli. While no new jobs are expected to be created by this investment (beyond construction), the company plans to retain all 410 team members at the current facility. As part of the deal, the Tuscaloosa County Industrial Development Authority approved a tax abatement package for construction and equipment costs and a 10-year real and personal property tax abatement. “Nucor has investments in over 300 operating facilities in North America, and we are proud that the Tuscaloosa facility has been awarded this new business. In today’s global market, companies have a wealth of opportunities regarding where Crane loading steel roll Photo: Getty Images (Continued to page 152)150 JANUARY 2024 SITE SELECTION I n November 2023, Alabama Governor Kay Ivey announced that the state would be constructing a $30 million workforce training center at the Alabama Robotics Technology Park located in the state’s northern city of Decatur. The Technology Park, operated by the Alabama Industrial Development Training (AIDT) agency, focuses on workforce training for advanced R&D and manufacturing technologies, making it the ideal location for an EV and emerging technologies facility. Many companies in the state send their employees here for relevant training needs. With this new addition the state hopes to make its workforce one of the most competitive in the nation. “We are in a workforce war, really,” said AIDT Executive Director and Alabama Deputy Secretary of Commerce Ed Castile at the annual North Alabama Industrial Development Association luncheon in Atlanta in December 2023. “Not just Alabama but all over the world. We were barreling toward it pretty fast before COVID, and that pumped it up a bit more. We are a small state, but we’re a mighty state when it comes to a lot of things.” Off the back of investments by automotive leaders Mercedes-Benz and Hyundai, with a specifi c focus on EV production between the two, the state knows that these projects depend on a reliable and skilled pipeline of talent. It’s been an all-hands-on-deck initiative as state leadership and AIDT traveled to EV facilities in Japan and Europe and heard directly from industry leaders as they looked to develop programs for workforce training at the center. In addition, the University of Alabama, the state’s community college system and its K-12 school system plan to play a role in these development eff orts. Currently, Alabama supports about 47,000 automotive manufacturing jobs and vehicles represent the state’s No. 1 export to date. Leaders anticipate that this sector will continue to boom as new investments hit from both manufacturers and suppliers looking to move in, making resources like the EV workforce training center a no-brainer to aid future growth. “Like your granny’s biscuit mix, there is a recipe: recruitment, pre-employment training, maintenance assessments, safety assessments, centers of excellence, communications, leadership development and on-the-job training,” says Castile. “If you leave out an ingredient, it’s not so good. If you use the whole recipe, it works.” The 40,000-sq.-ft. facility is in the midst of design work and is expected to become operational by 2025. EV TRAINING UNDERWAY EV TRAINING UNDERWAY Mercedes-Benz launched EV production at its Tuscaloosa facility in 2022. Image courtesy of Mercedes-Benz152 JANUARY 2024 SITE SELECTION and how to invest in operations,” said Tuscaloosa County Economic Development Authority Executive Director Justice Smyth. “Today’s announcement underscores Nucor’s confi dence in our partnership and our people.” Solar Energy Incoming Renewable energy is top of mind for everyone nowadays. ese operations aren’t cheap, but the state is ready to help new companies fi nd their footing for new project investment. In July , Ingka Group — which represents IKEA Retail, Ingka Investments and Ingka Centers — announced that Walker County would be the future home of Project Helios. Supported by a $ million investment the company has initial plans to introduce three megawatt, -acre solar farms with potential to bring on two more in the future, which would bring the total investment somewhere in the ballpark of $ million. “ e Walker County projects are early- stage developments but have the potential to advance Ingka Group’s wider commitment to secure long-term access to renewable energy that can help to further reduce its footprint and improve renewable energy production,” says Ingka Investments Head of Renewable Energy Investment Frederik De Jong. A majority of renewable project investments made by Ingka Investments have not previously landed in the United States. Currently, the company owns and operates wind and solar developments in international locations such as Poland, Germany, Sweden and Australia. is move to establish U.S. solar operations aids the company in solidifying its global portfolio, with big plans for Alabama. Back in , the company acquired , acres of forest land miles from Walker County in Lowndes County, Alabama, representing its fi rst U.S. forest property that is now used for sustainable production of materials used for IKEA operations. In addition, Ingka owns , acres of former strip-mined property in unincorporated Walker County, which is expected to house GROWTH BEGETS GROWTH R +L Carriers Vice President Jeff Haungs was not kidding around when he said that the company’s current Birmingham facility could no longer support its growing operations. But that doesn’t mean the global logistics company was looking to leave town. Instead, the company is investing $36 million to construct a massive new facility on land the company acquired at the Daniel Payne Industrial Park for $3.78 million in November 2023. Currently, the company operates on 15 acres with 65 dock doors. Through this expansion the new 70-acre site will house 130 docks, which will allow for future growth when needed. R+L Carriers has fi ve locations throughout the state, having opened its 50-acre Huntsville facility in August 2023. “Since the early 1990s, R+L Carriers has served the freight transportation needs of North Alabama,” said R+L Carriers VP of Marketing and Business Critical Sales Greg Bronner at the time of its opening. “Given the increase in freight volumes in this market, this additional capacity supports the shipping public and refl ects our continued commitment to grow with our customers in expanding markets and to maintain industry-best transit times.” As the company prepares for its Birmingham expansion it is looking for support in the process. The city’s Industrial Development Board is set to vote in January on a 10-year property tax abatement and sale and use tax abatement. The project will create 65 new jobs. R+L Carriers recommits to Birmingham in moving to a site with 55 more acres to meet demand. Image courtesy of R+L Carriers (Continued from page 148)154 JANUARY 2024 SITE SELECTION these future solar farms. Final site decisions have yet to be made as design work is in process. When the project was first announced there was speculation as to whether Alabama Power Company would look to purchase and use energy produced at the site. A company representative confirms that as of this writing, there are no contracts in place for Alabama Power to purchase energy from any of the proposed solar facilities. The Walker County Commission was able to secure Project Helios, which is the county’s largest economic development capital investment ever, with a 20-year abatement of non-educational property and a sales tax during construction. Each individual farm will take about a year to construct and become operational, which means if all five farms were to come to fruition, buildout would take five to seven years. According to the state’s Department of Revenue analysis, sales tax generated during construction could result in $7 million toward Walker County Schools, or up to $32 million over the project’s 35-year life span. “The solar park development in Walker County will be eligible for tax incentives standard to the renewable energy business, without which the project would not be feasible,” says De Jong. “Final investment decisions will be taken following further technical design and development activities. We look forward to continuing to work closely and constructively with local officials as we progress these plans.” Until these decisions take place it is unknown what the final investment will be, as well as how many jobs will be created as a result. Miele plans to begin its first U.S. production by 2026. Image courtesy of MieleNext >