Business Facilities - December 2008 - (Page 15)

These four projects—from all across the United States—just missed the medal stand, but still warrant recognition for their ambitious and lucrative economic endeavors. Project Title: Minnesota Steel Entered By: State of Minnesota Department of Natural Resources Commission. “Essar Steel Minnesota has a solid mining plan in place, as well as good strategies for future land reclamation projects. It is a true asset to the state.” Project Title: MPI Research Expansion: Making the Moving Parts Work Together Entered By: Southwest Michigan First (in partnership with the Michigan Economic Development Corporation) B y 2012, Minnesota will open North America’s first steel operation where iron mining, ore processing and steel production all occur at a single site. Situated near Nashwauk, a northern Minnesota town of 935 people, the Minnesota Steel project is the state’s largest industrial endeavor, and it has been under development for more than 11 years. In September 2008, Essar Steel Holdings Limited Group broke ground on the site, which is adjacent to the former Butler Taconite Mine, closed since the mid1980s. Northern Minnesota currently has six existing taconite mines, each employing 600 workers on average. The Minnesota Steel project is designed to produce up to 2.5 million tons of steel annually and, with all of the processing stages done on-site, product movement can be minimized and energy savings can be maximized. The result will be one of North America’s lowest-cost steel production operations. The unemployment rate of Itasca County, home to the Minnesota Steel project, is higher than state and national averages. But the project estimates 2,000 direct and 1,500 indirect construction jobs will enliven the region during the next two years, in addition to creating 700 direct and 1,550 indirect operations jobs annually. Direct investment for the steel project’s construction will total $1.6 billion, with another $1 billion in indirect and induced investment. For direct operational costs, $888 million has been allocated, plus an additional $462 million of indirect investment. Approximately $66 million will be spent to construct natural gas lines, plus water, sewer, road and rail improvements. “This project is an example of hard work and coordination among many partners and we’re gratified to see it moving forward,” says Mark Holsten of the Minnesota D ogged by the automotive sector’s struggles and recent job losses, Michigan’s economic success stories often are overlooked. But a masterfully planned partnership, organized by Southwest Michigan First, between MPI Research and Pfizer has brought hope and ingenuity to the Kalamazoo region. In early 2007, MPI Research, headquartered in Mattawan, MI, near Kalamazoo, indicated to Southwest Michigan First an interest in expanding its operations. While staying in Michigan was an option, MPI also was considering State College, PA and locations in China. Concurrently, representatives from pharmaceutical heavyweight Pfizer approached Southwest Michigan First with a desire to sell, donate or demolish two of its existing, but vacant, Kalamazoo buildings. With this, Project Moving Parts was born—a plan that would give MPI the infrastructure it needed to grow its business while relieving Pfizer of the space it no longer required. In cooperation with Southwest Michigan First, the Michigan Economic Development Corporation and Governor Jennifer Granholm, Pfizer agreed to donate the buildings (as this would be cheaper than demolishing), and a state tax credit valued at $86 million over 15 years secured MPI’s commitment to occupy the space. “We worked hard to win MPI’s investment, and we will continue to go anywhere and do anything to get companies BUSINESS FACILITIES 15 PHOTO CREDIT: ESSAR STEEL

Table of Contents Feed for the Digital Edition of Business Facilities - December 2008

Business Facilities - December 2008 Contents First Word Snapshots Corporate Moves: North Carolina Gold Award: New Engine for Growth in Virginia Silver Award: Tennessee Gets the Big Prize Bronze Award: Enrichment in Idaho Falls Honorable Mentions International Reach From America's Heartland Supply Chain Priorities Metro Spotlight: Greenville/ Spartanburg, SC The Magnolia State Has It All A Real Estate Mega-Merger State of the Year Ask the Expert Advertiser Index

Business Facilities - December 2008

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