Mississippi lawmakers OK incentives for Steel Dynamics aluminum plant
JACKSON, Miss. (AP) — Mississippi lawmakers met in special session Wednesday and quickly approved nearly $247 million in state incentives for an aluminum plant that is supposed to bring 1,000 jobs to the northern part of the state by 2029.
Many legislators voted on the incentives without knowing the name of the company. At a news conference as the session ended, Republican Gov. Tate Reeves acknowledged the aluminum project is being developed by Steel Dynamics Inc., a Fort Wayne, Indiana-based company that already operates a steel mill near Columbus, Mississippi.
“They are a fantastic employer in the Golden Triangle today,” Reeves said.
The Golden Triangle area encompasses Columbus, Starkville and West Point, near the Alabama border.
Reeves had previously said a nondisclosure agreement prohibited him from publicly naming the company until the deal was done. House and Senate leaders said they intentionally did not find out the name because they did not want to let the information slip out early.
During a debate Wednesday, House Ways and Means Committee Chairman Trey Lamar said the company is “an existing employer there in the area.”
Only the governor can call a special session, and Democratic legislators questioned why Reeves has not called sessions to address other issues, including funding for Jackson’s troubled water system or for struggling rural hospitals.
“Many Mississippians are suffering and dying. But none of these things, despite being matters of literal life and death, compelled the governor to call a special session,” Rep. Robert Johnson of Natchez said Wednesday during a Democratic Caucus news conference. “So, what compelled him to bring us back again? A victory lap being portrayed publicly as an emergency? But this feels a lot more like a campaign event, a political pep rally, than public service.”
Mississippi governors often have quick timelines to push incentives packages through the Legislature for large economic development projects, and it’s not unusual for them to try to keep company names secret until deals are complete.
Steel Dynamics Inc. announced in a news release in July that it plans to develop an aluminum mill in the Southeastern United States, “based largely on increasing demand from the automotive and sustainable beverage can industries.”
Reeves announced Monday that he was calling the special session to begin two days later. He said in a news release that the project includes “a flat-rolled aluminum production facility, biocarbon production facilities and certain other industrial facilities.”
Joe Max Higgins Jr., CEO of the Golden Triangle Development Link, said the salaries that come with the project are “a big deal.”
“Mamas and daddies can buy four-wheelers and bass boats and take their kids to Orange Beach, have money to go to college,” Higgins said Wednesday at the Capitol.
Republicans hold wide majorities in the House and Senate. On Wednesday, bills passed with broad bipartisan support, with a few votes in opposition in the House. Only one senator voted “present,” which was neither for nor against the bills.
Reeves said the average salary at the aluminum plant would be $93,000 — significantly higher than than the average pay for jobs in one of the poorest states in the U.S.
The proposed state incentive package includes $155 million in direct contributions, about $25 million for roads in and around the project site, money to help purchase land and income tax rebates, Reeves said.
“Mississippi is open for business, and that is the message that was sent to every job creator in America today,” Reeves said Wednesday.
The governor said the company would spend $2.5 billion, which would be the largest up-front investment to date for a company seeking state incentives to locate in Mississippi.
The previous record was in 2016, when Continental Tire announced a $1.45 billion investment to build a manufacturing plant in central Mississippi. The German company promised 2,500 jobs with an average pay of about $40,000 a year.
During a 2016 special session, legislators approved $263 million in borrowing for Continental, including $20 million to be repaid by Hinds County. With other tax breaks and aid, The Associated Press estimated the value of all incentives to Continental would exceed $600 million. The Continental plant opened in 2019.
Reeves said conversations about the new project began less than four months ago.
He said the state will have “aggressive” provisions to recover its investment if the company does not fulfill promises.