Steel producer SSAB has announced plans to invest up to $100 million into its operations in Axis to increase its production capacity for high-strength steel by 130,000 tons per year.
The addition to SSAB’s current mill operations, which will be constructed between 2019 and 2021, is expected to increase operational efficiency and reduce raw material costs over time.
Plans include the installation of a new accelerated cooling system to reduce the need for
alloys in steel production. The planned investments are targeted to a number of areas, including the rolling mill, formatting, blasting and painting, as well as overall shipping capacity.
The expansion could also create up to 50 new “well-paying” jobs locally, though SSAB says the total number will depend on “timing, priority and scope of Investments.”
“This announcement demonstrates SSAB’s commitment to our Alabama operations and to
our valued customer base in North America, as well as those customers we serve globally,” President of SSAB Americas Chuck Schmitt said. “With this planned investment, we not only increase our production but improve our quality and efficiency performance as well.”
The announcement follows a history of SSAB investment in the local area that started with the initial investment to build the mill in northern Mobile County. Through continued investments since then, upgrades and expansions to the mill have totaled more than $820 million.
SSAB also announced intentions to move its U.S. corporate headquarters in Illinois to Mobile in 2017.
“We have a long history of successful investment in Alabama, all with great cooperation and partnership with state, county and local agencies,” Schmitt said. “With these new investments, we have a unique opportunity now to work with local and state level officials to build upon our success even further.”