A maker of large-diameter steel pipe has announced a $15 million expansion in Mobile to add “capacity, increase research and development and preserve current jobs,” The Mobile Area Chamber of Commerce announced in a statement released Wednesday.
Berg Pipe President and CEO Ingo Riemer pointed to Mobile’s infrastructure, including Intersatate 10, railways and the port for reasons why the expansion would take place locally.
“Mobile checks all the boxes,” he said in the statement. “The mill is very successful, and we needed more space to increase capacity.”
As industry standards are updated, companies are replacing old pipe with newer technology, Riemer said, thus creating the demand. This is the first major expansion since the company began operations at the former International Paper site in 2009, just north of the Port of Mobile. The facility announced last month it will produce pipe for the Keystone XL pipeline under construction. Once complete, the pipeline will carry 830,000 barrels of crude oil daily from Alberta, Canada, to Steel City, Nebraska.
When the Chamber announced the initial $75 million investment, Berg committed to hiring 100 people. Approximately 200 permanent positions and 100 contract workers are currently employed at the site.
Berg is one of a number of companies with local ties to announce an expansion, Chamber Vice President of Economic Development David Rodgers said in the statement. The others include: SpillTech, Jones Welding and AM/NS Calvert.
“The confidence these companies have in Mobile speaks volumes to others looking to locate or expand,” Rodgers said.
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