Company’s seamless steel tube mill launches operations; 300 of 675 jobs filled for two-phase project
SHREVEPORT – Today, Governor Bobby Jindal met with Chief Operating Officer Tim Erway of Benteler Steel/Tube-Shreveport to discuss the company’s progress in establishing Benteler’s hot-rolling seamless steel tube mill located at The Port of Caddo-Bossier. The steel tube mill is the first phase of Benteler’s two-phase Louisiana project announced in October 2012. The second phase of the project will add a steel mill. With the two phases, the company is creating 675 new direct jobs with an average annual salary of $50,000, plus benefits. An economic impact analysis performed by LSU estimates the project will result in 1,540 new indirect jobs, for a total of more than 2,200 new jobs.
Benteler Steel/Tube will make a $975 million capital investment in the project’s two phases. Completed earlier this year, the first phase began operating in August 2015. The second phase is underway, with an expected completion in 2020. At peak building activity, the project has generated 1,000 construction jobs. To date, 300 of an eventual 675 permanent direct jobs have been filled at the facility.
Governor Jindal said, “Benteler Steel/Tube’s new facility is emerging as a major economic driver for the Northwest Region, creating great new jobs for Louisiana families. It is a testament to our state’s improved business climate, world-class infrastructure and highly skilled workforce. Since day one, we have made the improvement of our state’s economic competitiveness one of our highest priorities. As we celebrate the major investments made in Louisiana, such as this project by Benteler, we know that we have created a state in which businesses from around the country and around the world are now looking to Louisiana for their next major investment.”
Benteler selected Louisiana for its project after a competitive site-selection process that included 13 states and more than 100 potential sites. Based in Paderborn, Germany, Benteler Steel/Tube possesses decades of experience in the development, production and sale of seamless hot-rolled and seamless cold-drawn steel tubes. The company is a business unit of privately held Benteler International AG, which is based in Salzburg, Austria. The seamless steel tubes produced by the facility will be used for the exploration and transportation of oil and gas and for power generation and mechanical applications.
As part of the project, the State of Louisiana funded the 65,000-square-foot Center for Advanced Manufacturing and Engineering Technology on the campus of Bossier Parish Community College in Bossier City, La. Opened in late 2014, the BPCC center is first focusing on meeting the training needs of Benteler and then will support the training needs of other regional manufacturers.
“Choosing Louisiana for our first hot-rolling steel tube mill outside of Germany is an important step for us, as it allows us to be close to our customers and meet their needs here in North America,” Erway said. “We’ve found a welcoming business climate, an eager workforce with a great attitude, and numerous partners at the local and state level who worked closely with us to make this facility a reality. They’ve made us feel at home in Northwest Louisiana.”
Benteler’s facility at The Port of Caddo-Bossier is one of many significant new investments made in Louisiana’s Northwest Region, including projects by Dr. Reddy’s, Ronpak, CSC, IntegriCo, Moonbot Studios, ADA Carbon Solutions, International Paper, RoyOMartin and many more.
These projects and others are indicative of the state’s economic achievement under Governor Jindal’s leadership. Since 2008, Louisiana has attracted world-scale energy, technology, corporate and manufacturing projects that are resulting in more than $62 billion in new capital investment and more than 91,000 new jobs.
The state now ranks higher in every national business-climate ranking than it ever did prior to 2008. Business Facilities magazine ranked Louisiana’s business climate No. 3 in the U.S. this year, and the state has made the Top 10 for six consecutive years. Louisiana ranks No. 8 in the nation in Area Development’s Top States for Doing Business. Southern Business & Development ranks Louisiana No. 1 for business projects per capita; and LED was ranked by Site Selection as the No. 2 best-performing state economic development agency in the U.S. Prior to 2012, Louisiana did not rank in the top 10 of any major business climate ranking.
About Benteler Steel/Tube
Benteler Steel/Tube is a business unit of the global Benteler Group, which is headquartered in Salzburg, Austria. Founded in 1876, the Benteler Group employs a total workforce of 30,000 employees at 170 locations in 38 countries. Benteler Steel/Tube, headquartered in Paderborn, Germany, specializes in manufacturing and processing of seamless hot-rolled steel tubes and seamless cold-drawn precision steel tubes. There are four Benteler Steel/Tube sales offices located in North America, including headquarters in Houston. Further information about the company may be found at Benteler.com. For more information about Benteler in Louisiana, visit BentelerJobsInLouisiana.com.