HUNTINGTON, Ind. (Sept. 17, 2008) - Steel bar manufacturer Gerdau MACSTEEL announced today its board of directors have approved a $9.4 million expansion to its heat treating operations here, creating 20 new jobs by 2011.
As part of the expansion, the company will construct a new 38,000-square-foot building to house a fifth quench and temper line with induction similar to the company's existing four lines located on the city's northwest side.
"We continue to outrun all of our Midwestern competitors in attracting new job-creating investment from companies like Gerdau MACSTEEL, but we can't let up for a minute. We can never take a rest, we have to get on to the next success and the next," said Governor Mitch Daniels.
Gerdau MACSTEEL, which provides hot rolled and cold finished steel bars to customers in the automotive, defense and agriculture industries, will begin hiring line associates and finishing operators next summer to accommodate the new production line.
"Gerdau MACSTEEL Heat Treat is recognized as a leader in quench and tempering of long products in the steel industry and this expansion will support our commitment to our customer's needs," said Mark A. Marcucci, president of Gerdau MACSTEEL, "The project, scheduled for completion in the fall of 2009, will add 18,000 tons of additional bar and tube capacity, increase the size range of our products and expand our value-added services."
Established in 1981, MACSTEEL's heat treating operations have seen continued growth, undergoing three prior expansions starting in 1990. In April of 2008, MACSTEEL, formerly a division of Quanex Corp., was acquired by the Brazil-based Gerdau Group.
Headquartered in Jackson, Mich., Gerdau MACSTEEL is one of the largest producers of engineered steel bars in North America. The company operates manufacturing facilities in Jackson and Monroe, Mich. and Fort Smith, Ark., and processing facilities in Huntington, Ind. and Pleasant Prairie, Wis.
The Indiana Economic Development Corporation offered Gerdau MACSTEEL up to $175,000 in performance-based tax credits and up to $30,000 in training grants based on the company's job creation plans. The city of Huntington also awarded property tax abatements on the building and equipment additions at the request of the Huntington County United Economic Development Corporation.
"MACSTEEL has always been among Huntington's finest corporate citizens, and we are honored by their continued commitment to our community," said Huntington Mayor Steve Updike. "Winning this expansion is critical to retaining 45 existing jobs and took the teamwork of Gerdau's corporate leadership, local and state officials."
Gerdau MACSTEEL's expansion in Indiana comes only months after global economic development firm Development Counsellors International ranked Indiana tenth in a survey of the nation's best states for doing business. The accolade, which follows CNBC naming Indiana the "most improved state for business in 2008," marks the first time in history the state finished in the top 10 of the annual survey of states.
About Gerdau Group
Gerdau is the leading company in the production of long steels in the Americas and the world leader in specialty long steels for the automotive industry. It has 45,200 employees and operates in the Americas, Europe and Asia, totaling an installed capacity of 25.9 million tons of steel. Gerdau is Latin America's largest recycler, processing more than 16 million tons of scrap annually. With over 140,000 shareholders, Gerdau's public-traded companies are listed on the São Paulo (Bovespa: GGBR4, GGBR3, GOAU4 and GOAU3), New York (NYSE: GNA, GGB), Toronto (GNA) and Madrid (Latibex: XGGB) stock exchanges.
About IEDC
Established under Governor Mitch Daniels in 2005 to replace the former Department of Commerce, the Indiana Economic Development Corporation is governed by a 12-member board chaired by Governor Daniels. Indiana Secretary of Commerce Nathan Feltman serves as the chief executive officer of the IEDC. Since the creation of the IEDC, the state has posted three consecutive years of record-breaking commitments for new jobs. For more information about IEDC, visit www.iedc.in.gov.
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Media Contacts:
Kendall Mickley (Gerdau MACSTEEL) - 260-356-9520 or kmickley@gerdaumacsteel.com
Mitch Frazier (IEDC) - 317.232.8873 or MFrazier@iedc.in.gov
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