Dive Brief:
- Ohio company, New Steel International, is reportedly planning to build a $6B automotive steel plant near Flint, MI, according to MLive. The company has not released any specifics regarding funding or a construction timeline, but the facility is expected to be 24 million square feet and provide 800 jobs.
- Previously referred to as Project Tim, the development sparked interest among locals after options were snapped up for 1,000 acres of farmland earlier this year.
- New Steel International has reportedly applied for a $7 billion loan through the U.S. Department of Energy and its Advanced Technology Vehicles Manufacturing Loan Program to finance construction. The loan program is intended to help automakers finance new energy-saving manufacturing methods, and New Steel officials, according to Automotive News, have told lawmakers that the project could see investment from major auto companies such as General Motors and Tesla.
Dive Insight:
Plans for new U.S. manufacturing plants have been springing up recently, particularly among automobile manufacturers and related-service factories. Foreign companies, especially, have been making inroads in developing and constructing the nation's new factories.
Those who own or construct new plants typically receive generous incentives for their investment in the local economy. Earlier this year, Swedish automaker Volvo decided to double its $500 million investment in a South Carolina plant to $1 billion, though its reasons for doing so are still unclear. The state had already guaranteed $200 million in incentives for Volvo in 2015, borrowing $123 million to make good on that deal. In return, Volvo is expected to provide nearly 4,000 jobs and contribute to infrastructure work around the site.
In June, China-based Wanli Tire Corp. also tapped South Carolina for the site of its new $1 billion manufacturing plant. Much like it did with Volvo, South Carolina officials have requested permission to secure a $40 million loan to prepare the site for construction and build up its infrastructure. Wanli expects to build the plant in two phases over a period of eight years. When complete, the company expects to employ approximately 1,200 people there.
