In the latest legislative session, Arkansas lawmakers passed a measure touted as a jobs creator, the Arkansas New Markets Job Act.
The bill encouraged private sector investment in small businesses, particularly in low-income regions, by providing tax credits tied to private capital investments including at existing businesses.
On Tuesday (July 9), Heartland Renaissance Fund, an affiliate of The Arkansas Capital Corporation Group, said it will provide $10 million in New Markets Tax Credits to SGL Group’s Ozark, Ark. manufacturing facility. Heartland’s investment is part of a federal new markets program, as the state’s version does not go into effect until July 15.
The Heartland money will be used to replace the current operations with a new state-of-the-art graphitization process for the manufacture of graphite electrodes, which are used for the production of steel in electric arc furnaces. SGL Group employs around 90 workers in Ozark.
The $10 million New Markets Tax Credit financing is part of a $26 million overall investment at the plant.
“High tech manufacturing projects like SGL Group are invaluable to the economy of the state and provide valuable jobs to the community,” said Sam Walls, chairman of the board for Heartland Renaissance Fund. “The Heartland Renaissance Fund is the only Arkansas-based New Markets Tax Credits program dedicated solely to Arkansas-based economic development, and it is critical to ensuring Arkansas businesses have access to the capital needed to both expand and remain competitive. We are excited to be working with SGL on this project.”
The new SGL Group facility is expected to be completed by June 2015.