Benteler Award

Benteler Steel/Tube Wins National Award for $900 Million Investment

March 12, 2013


(Shreveport-Bossier, La) Benteler Steel/Tube received national recognition for its historic investment in North Louisiana. The German-based steel manufacturer won a 2012 Corporate Investment & Community Impact (CiCi) Award in the investment category from Trade & Industry Development. This leading national site selection magazine annually honors companies that have made the most notable investments and impact on communities.

Benteler Steel/Tube announced on October 26, 2012 it will build a $900 million, hot rolling tube mill at the Caddo-Bossier Port in Shreveport, Louisiana. The two-phase facility will include both a seamless steel tube mill during phase one and a steel mill during phase two.

“We firmly believe that Northwestern Louisiana is the perfect place to step up our activities in the U.S. market for Oil Country Tubular Goods (OCTG) and to expand our presence in the U.S.,” said Matthias Jaeger, president and CEO, Benteler steel/Tube GmbH.

“With the growing demand for high-quality steel tubes for exploratory drilling in the U.S., and Louisiana’s proximity and access to energy customers, Benteler Steel/Tube’s Louisiana plant is poised to play an important role in meeting U.S. domestic energy needs. Decisive factors were, among others, the excellent conditions for logistics, infrastructure and the availability of a strong and talented workforce in Shreveport-Bossier. We would like to thank the state of Louisiana and all those who helped to make this project possible for their great cooperation and commitment. We are looking forward to a long lasting and fruitful partnership,” said Jaeger.

When at full capacity, the mill will create 675 new direct jobs paying an average annual salary of $50,000, plus benefits. The project will also generate 1,000 construction jobs. An economic-impact analysis by Louisiana State University indicates approximately 1,540 new indirect jobs will be created, resulting in a total of more than 2,200 new, permanent jobs. Additionally, during the term of Benteler's contract with LED, which runs through 2035, the project could result in total new earnings of $2.7 billion (approximately $150 million per year at full employment) in North Louisiana and a total, cumulative economic impact of $16.2 billion in the region.

“These major investments provide a clear snapshot of where and in which industries growth is occurring today. Each of the investments to be made by Trade & Industry Development’s 8th Annual CiCi Award recipients will be transformational for the communities in which the projects will be located,”said Scott D. Swoger, publisher, Trade & Industry Development magazine, and president of its parent company Due North Consulting, Inc.

The recruitment of Benteler Steel/Tube to North Louisiana took a collaborative effort by many state, regional, and local partners. Louisiana Economic Development, Caddo-Bossier Port, Red River Waterway Commission, City of Shreveport, City of Bossier, Caddo Parish Commission, Bossier Parish Police Jury, Greater Bossier Economic Development Foundation, Bossier Parish Community College and North Louisiana Economic Partnership worked as a team to provide Benteler with the information, site selection services, workforce training and local incentives needed to bring the project to this region.

“We congratulate Benteler Steel/Tube on winning this prestigious award, which is a testament to the power of teamwork! Benteler Steel/Tube located in North Louisiana because of the collaboration between the company, economic development organizations and higher education partners. This win is an example of what can happen if we all work together,” said Scott Martinez, President, North Louisiana Economic Partnership.

With more than 400 project submissions from throughout North America, the Benteler Steel/Tube project was chosen as one of only 15 finalists for the Impact division of the CiCi Awards. This project will be highlighted in the March/April 2013 issue of Trade & Industry Development.

ABOUT BENTELER STEEL/TUBE


Benteler Steel/Tube is a business unit of the global Benteler Group, which is headquartered in Salzburg, Austria. Founded in 1879, the company is proud of its more than 135-year history of success. The Benteler Group employs a total workforce of 30,000 employees at 170 locations in 38 countries. The successful business unit, 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, Texas.

Further information about the company can be found at www.benteler.com. Visit www.bentelerjobsinlouisiana.com for employment opportunities.

ABOUT NORTH LOUISIANA ECONOMIC PARTNERSHIP


NLEP is a non-profit economic development organization, promoting 14 parishes in North Louisiana as a desirable and profitable business location. The NLEP and its many partners work with both existing companies and prospective employers to encourage incremental capital investment and job creation as a way to build a strong and thriving economy. Visit www.nlep.org for more information.