MEDC announces MSF actions to support construction of a new steel coil facility in the City of Gibraltar
LANSING, Mich. – The Michigan Economic Development Corporation today announced Michigan Strategic Fund actions to support construction of a new steel coil facility in the city of Gibraltar, a project that is expected to generate $50.2 million in total capital investment and bring 100 new jobs to Michigan.
“The redevelopment of this brownfield site into a new cutting edge manufacturing facility will revitalize the community and bring new jobs to Detroit-area residents. It is thanks to many public and private partners that this project is taking place, and we are pleased to support that collaboration,” said MEDC Chief Executive Officer Steve Arwood. “Ferrous CAL’s decision to invest in Michigan underscores an economic climate that is more business-friendly than ever and a manufacturing talent pool that can compete with any place in the world.”
Ferrous CAL Co., a newly-formed affiliate of Ferragon Corporation, is a leading provider of toll processing services for hot-rolled and cold-rolled steel with operations in Michigan, Ohio, Kentucky, and Mississippi. The company is establishing a new facility on an underutilized, largely vacant property on W. Jefferson Avenue in the city of Gibraltar. The completed project will generate a total capital investment of $50.2 million and create 100 jobs. As a result, the company has been awarded $6 million in Michigan Business Development Program incentive assistance.
“We look forward to the startup of our state-of-the-art annealing operation in Gibraltar in late 2016. This process line is the first of its kind in North America and produces ultra-high strength steels which are the steels that the new lightweight vehicles made in Michigan are demanding for future vehicle production,” said Ferragon Corporation President and Owner Ed Gonzalez. “Our decision to make this investment at the former McClouth Steel site could not have been made without the support of the state and local economic development community. We thank all the individuals and agencies involved for their efforts in bringing about this unique public-private partnership to rejuvenate this long-neglected site.”
The MSF and Wayne County Brownfield Redevelopment Authority also approved an Act 381 Work Plan for local and school tax capture estimated to be worth $4,511,454. Incentive assistance will allow the company to alleviate brownfield conditions on the property and complete the project including demolition, lead and asbestos survey and abatement, site preparation and infrastructure improvements. The city of Gibraltar has offered support to the project through the approval the brownfield work plan.
“The City of Gibraltar welcomes Ferragon Corporation as the new owner of the largely vacant former steel plant located on W. Jefferson Ave. in the City of Gibraltar. The recent purchase of this property by Ferragon Corporation provides a great opportunity for a partnership with the State of Michigan and the City of Gibraltar for a successful Brownfield Redevelopment project that will protect the environment, provide additional jobs and avoid potential blight,” said city of Gibraltar Mayor James F. Gorris. “On behalf of the City of Gibraltar, I look forward to a very successful relationship with the Ferragon Corporation from now and well into the future.”
The city of Gibraltar, Wayne County, Detroit Wayne County Port Authority, MEDC and the Michigan Departments of Transportation and Environmental Quality worked together to develop an incentive package to offset the cost to remediate the site. “The Detroit Wayne County Port Authority would like to thank the MEDC and MDEQ for making this project a reality. Without their cooperative effort and innovative financing the hurdles facing this projects could not have been overcome,” said Detroit/Wayne County Port Authority Executive Director John Loftus. “The Port Authority is pleased to have been able to facilitate this important job creation project for Gibraltar, Wayne County and Michigan.”
To watch a video about the Ferrous CAL project, visit here: https://www.youtube.com/watch?v=7F74yekfpAo&feature=youtu.be.
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About Michigan Economic Development Corporation (MEDC)
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