Calstrip Plans $15M Investment, 45 Jobs Near Blytheville

by Lance Turner  on Wednesday, May. 16, 2018 10:29 am   2 min read

Calstrip Industries Inc. of Mira Loma, California, announced Wednesday plans to invest $15 million in a new 100,000-SF steel processing plant on the campus of Nucor Steel Arkansas, near Blytheville in Mississippi County.

Construction is scheduled to begin during the second quarter. It's the first phase of a project that aims to eventually grow to more than 300,000-SF. The first phase, worth $15 million, is expected to create 45 jobs.

The project comes as Nucor continues work on a $230 million cold mill addition, first announced in 2016. Nucor has said the mill will expand its capability "to produce advanced high-strength, high-strength low-alloy, and motor lamination steel products," supporting its goals to increase sales to the automotive market.

"We are very excited with the opportunity to grow our business alongside the new capabilities coming online at Nucor Steel Arkansas," Calstrip CEO J.P. Nelis said. "The addition of the Arkansas facility will strengthen Calstrip's commitment to provide steel to our customers with the most competitive value and service, sourced from a cutting-edge producer in Nucor."

Calstrip's plant will be adjacent to Nucor's new cold mill complex and operate both slitting and multi-blank cut-to-length lines. In addition to supporting Nucor, the operation will be positioned to support Calstrip's traditional medium- and high-volume service center customers, according to an Arkansas Economic Development Commission news release.

"We are excited to have Calstrip constructing a facility on our site," said MaryEmily Slate, Nucor Steel Arkansas' vice president and general manager. "Investments like our specialty cold mill complex create opportunities like this to bring additional economic development and jobs to the local community. Calstrip provides high-quality service to its customers, and we welcome them to Blytheville."

AEDC said the Calstrip project qualifies for a $250,000 Community Development Block Grant and the state's Advantage Arkansas and Tax Rebate incentives.

The move will expand Calstrip's footprint into the Midsouth. It already operates three facilities in Mission, Texas; Santa Teresa, New Mexico; and Mira Loma, California. Its customers are in the appliance, electrical lighting, construction, HVAC and automotive industries.

Mississippi County is among the largest steel producing counties in the country. Nucor, the largest steelmaker in the U.S., has a three-decade history in Mississippi County and operates four facilities there, employing nearly 1,700 workers. The county is also home to Big River Steel, a $1.3 billion steel plant in Osceola. In February, Union Partners of Oak Brook, Illinois, announced plans to build a steel processing facility on its campus.

"The addition of Calstrip further strengthens the might of the steel industry in Mississippi County, and the new advanced manufacturing jobs being created in Blytheville will go a long way in diversifying the area's economy and improving the lives of Arkansas families," Gov. Asa Hutchinson said in a news release.

"We are always pleased to see new industry display an interest in our area," Blytheville Mayor James Sanders said. "We are delighted to welcome Calstrip into the Blytheville business community, and we look forward to seeing new job opportunities for the residents of Blytheville and our surrounding community."



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