Salem Tube has selected Durant, Okla., for the site of its North American headquarters and advanced manufacturing facility. The plant will contain approximately 150,000 square feet of high-tech, precision manufacturing space with corporate headquarters office space.
“This investment by Salem Tube is great news for our state, and also the latest proof of our continued efforts to diversify and grow manufacturing jobs throughout Oklahoma,” said former Oklahoma Governor Mary Fallin. “The jobs Salem Tube is bringing to Oklahoma are good, high-paying jobs that will help improve our overall economy and make us a more prosperous state.
“We know Salem Tube had options when deciding where to locate its North American headquarters and advanced manufacturing facility. Their decision says a lot about the efforts we’ve made in Oklahoma to create a positive business environment and it shows that our state can compete internationally. Sixteen percent of new and expanding jobs are foreign direct investments. I would like to thank The HWH Group and Salem Tube for choosing Oklahoma and bringing exciting job opportunities to Oklahoma.”
Salem Tube, a Tubacex Group company, is a global manufacturer of high precision stainless steel tubing and nickel alloy tubes. Tubacex is headquartered in Llodio, Spain, and has industrial facilities and a broad network of sales offices spread around the world. It exports to more than 100 countries worldwide with a total global workforce of about 1,800 employees. Tubacex has been a publicly traded company on the Spanish Stock Market (TUB MC) since 1970.
Craig Hughes, HWH Group vice president of real estate and development services, conducted a 12-state site search along the Gulf Coast from New Mexico to North Carolina, performing due diligence and feasibility studies, weighing factors such as logistics, taxes, energy costs, and available facilities. More than 250 sites were evaluated, including 67 existing manufacturing facilities over a 12-month process.
“It was a very competitive process with a number of communities really stepping up in an effort to earn this marquis headquarters and manufacturing operation for their community,” Hughes said. “HWH was able to generate broad support for the project and was able to negotiate and secure a substantial incentive package that included the creation of a Tax Increment Financing district. The Oklahoma Department of Commerce working in conjunction with the local Durant officials put together a very compelling package that made the difference at the end of the day.”
Steven Hattier, HWH Group vice president of finance said: “Rural communities are often isolated from traditional capital sources. The New Markets Tax Credit (NMTC) Program is a proven and targeted tool to redirect capital flow to rural communities to help regain years of lost ground in manufacturing.”
HWH arranged for and fully allocated $34 million in NMTCs to the Salem Tube project.
“Our volunteer advisory board, governing board, staff, and management have worked hard to provide NMTC financing in rural Oklahoma,” said Scott Dewald, REI Oklahoma president and chief executive officer. “This program provides critical financing where it is most needed, and we are excited about the valuable economic opportunities that this project creates.”