ThyssenKrupp Delaying Production At Calvert Plant

Alabama Financial Crisis The German steelmaker will delay the start of stainless steel production for a year because of a "massive drop in demand."

by Jamie Burch

Published: Fri, January 23, 2009 - 12:02 pm CST Last Updated: Mon, May 18, 2009 - 10:14 pm CST

ThyssenKrupp announced it will delay the start of stainless steel production at its $4 billion plant being built in Calvert because of a "massive drop in demand." But that drop in demand does not impact the majority of what will be produced at the plant which is carbon steel.

Scott Posey, a spokesman for ThyssenKrupp Steel USA which will produce 70-percent of the plant's product (carbon steel), tells News 5 they are still on schedule for spring of next year.

ThyssenKrupp Stainless USA on the other hand is feeeling the pinch of the slumping economy. Spokeswoman Mary Mullins says they will delay production of stainless steel until late next year.

Governor Bob Riley called the disappointing "but understandable given current economic conditions."

Mobile County Commissioners say they are not alarmed by the announcement.

“This is just a minor hiccup that will simply delay production a few months in one portion of the plant,” said Mobile County Commission President Mike Dean.

Construction, which started with the groundbreaking in November 2007, will continue.

"There are about 2,000 people working to build the plant now and that’s expected to grow to 10,000 in the next six months," Riley said. "Alabama is incredibly excited about ThyssenKrupp and the thousands of new jobs the company will create in our state.”

“Thousands of construction workers will remain on the job and the vast majority of the facility will begin production on target,” said Mobile County Commissioner Merceria Ludgood.

The plant is expected to employ 2,700 jobs when it is fully operational - 1,800 at ThyssenKrupp Steel and 900 at ThyssenKrupp Stainless.

"This remains the largest economic development project in the nation right now,” said Mobile County Commissioner Stephen Nodine. “I feel confident about our investment and the immense long term benefit TK will have on the entire region.”

Mobile County contributed $70 million of the total $811 million ThyssenKrupp incentive package arrpoved by voters.

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