Southwest Steel Announces $18 Million Expansion, 100 New Jobs In Newport

The announcement that a steel company will be adding 100 jobs at its facility brought Gov. Asa Hutchinson and several other state and local officials to Jackson County Monday morning.

The announcement, which was made in the locker room of Southwest Steel Processing, took on the feel of a pep talk as several people said the expansion will help Newport and Jackson County for many years to come.

Officials with Southwest Steel Processing said in addition to the 100 jobs, the company would spend $18 million to expand the facility just off U.S. 67.

The company currently has 120 employees at the Newport location. The new jobs are expected to pay in the $18 to $19 an hour range, or between $37,000 and $39,000, Jon Chadwell, executive director of the Newport Economic Development commission said.

BACKGROUND
Chadwell said the work to bring companies to Newport started in 2002 when city voters approved a half-cent sales tax for economic development.

Within months, the first incentive package for Southwest Steel Processing for 54 jobs was created, Chadwell said.

The company was formed due to a partnership with Ohio-based Park Ohio and Arkansas Steel Associates.

Chadwell said the partnership uses raw materials from Arkansas Steel and turns it into components for the railcar industry.

Edward Crawford, CEO of the partnership, said company officials were looking for a place to grow and chose Newport because “we liked what we saw.”

Crawford said companies often choose towns where officials and their employees feel welcome, with Newport certainly meeting that criteria.

Hutchinson said the expansion “was an exciting day for Newport and the state of Arkansas as well.” The governor said the expansion could lead to other opportunities in the region, especially with other industries.

Hutchinson, who recently took a trip to California’s Silicon Valley to speak with officials from several high-tech companies, said the basics like job skills and expanding workforce training make the battle for jobs a constant struggle.

However, Hutchinson said companies that are willing to invest are also crucial.

“You said earlier you are looking for places to expand. Let me just say, your search is over,” Hutchinson said to the Arkansas Steel Associates CEO.

OPPORTUNITY
Chadwell said the Jackson County town has benefitted from several key infrastructure projects as well as its location on the map.

A major highway (U.S. 67), which now links the area to Jonesboro, runs north to south through Jackson County. A major railroad line also runs through Newport, with access available to Southwest Steel Processing.

“We are the exact same distance from Memphis and Little Rock,” Chadwell said, noting Newport is about 90 miles away from both places.

The town is also within driving distance of the Arkansas River port at Little Rock, as well as the Mississippi River ports of Osceola and Memphis, Chadwell said.

“They expect to start immediately,” Chadwell said of the expansion.