Open / Close Advertisement

Jemison Demsey Mulls New Alabama Plant

Flat-rolled steel processor Jemison Demsey Metals has received tax abatements to build a $28.1 million facility in the Decatur, Ala., area, according to documents filed with the city’s industrial development board.

The board approved tax breaks for Birmingham, Ala.-based Jemisen Demsey to build a processing plant in the region. One possible site being considered is 28 acres of land adjacent to steelmaker Nucor Corp.’s Decatur plant, a Decatur city clerk said.

"Our goal is to be in the Decatur area and service Nucor’s Decatur facility, one of main suppliers," Peter Heinke, CEO of Jemison Demsey, told AMM.

Nucor did not respond to calls for comment.

Should the plans for the new site go ahead, the facility would convert master coils to cut-to-length products and slit coils, according to the abatement agreement. The city approved about $1.4 million in property and other tax breaks for the project.

The Decatur city clerk confirmed that the development board approved the abatements in a unanimous vote by its members. One board member abstained.

The first phase of the project, which involves construction and equipping the plant for the conversion of master coils to cut-to-length products, is slated to being in September. Operations for that portion would begin by the end of 2013, according to the abatement agreement.

Construction on the second phase, which involves the conversion of master coils to slit coils, is slated to begin in January 2016 and be in operation by the end of that year.