JACKSON, Miss. (AP) — Mississippi lawmakers were meeting in special session Wednesday to consider about $247 million in state incentives for an aluminum plant that could bring 1,000 jobs to the northern part of the state.
Republican Gov. Tate Reeves has declined to name the company, saying he signed a nondisclosure agreement. He said during a news conference Tuesday that the company is large and “has a long history of success." Legislative leaders have also declined to name the company until the deal is complete.
The Mississippi secretary of state's website shows a company called Aluminum Dynamics LLC registered in the state Oct. 26. One of the company's officers is Richard Poinsatte, who has been vice president and treasurer for Steel Dynamics Inc., according to his LinkedIn page. The registration with the secretary of state's office shows Aluminum Dynamics LLC has the same street address in Fort Wayne, Indiana, as Steel Dynamics Inc., which is also known as SDI.
Steel Dynamics Inc. already owns a steel mill near Columbus, Mississippi. The company 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.”
The Associated Press left a phone message Wednesday for Steel Dynamics spokesperson Tricia Meyers with questions about whether the company plans an aluminum plant in Mississippi. She did not immediately respond.
The AP could not find a website for a Mississippi-based company called Aluminum Dynamics, and the registration with the secretary of state did not include a phone number for the company.
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.
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. The facilities would be in the Golden Triangle area, which encompasses Columbus, Starkville and West Point and is near the Alabama border.
Only the governor can call a special session, and some legislators questioned why Reeves has not called sessions to address other issues, including funding for Jackson's troubled water system.
“Mississippi needs economic development. Yet we are not having a special session on the water crisis or hospital closures happening across the state,” Democratic Rep. Zakiya Summers of Jackson wrote on Twitter. “Mississippians needs these basic services as well.”
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 Tuesday.
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. Republicans control the Mississippi House and Senate. Reeves said he hopes members from both parties will support the project.
Copyright 2022 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed without permission.
