Calstrip Industries will build a new processing facility on the Nucor Inc. campus in Hickman. Construction will begin during the second quarter of 2018.
The initial construction will be more than 100,000 square feet, with two planned expansions that will bring the total facility size to more than 300,000 square feet, according to the company. The initial phase alone will involve capital investment of more than $15 million, and will create 45 new jobs. When the total project will be completed was not released.
“Site selection and building design have been completed, and we are communicating with Nucor and our customers on appropriate equipment requirements,” said Ed Camden, chief operating officer at Calstrip Industries.
Located adjacent to Nucor’s new specialty cold mill complex, Calstrip will operate slitting and multi-blank cut-to-length lines. The facility design, equipment selection, and information systems will include advanced generation technology to provide specified storage and processing requirements for Nucor, and its customers, according to the company. The operation will be positioned to support Calstrip’s traditional medium and high volume service center customers.
The addition of this new operation will expand Calstrip’s footprint into the Midsouth to enhance existing OEM customer relationships, target new sales opportunities, and support Nucor’s growth in advanced high-strength, high-strength low-alloy, and motor lamination steel products. The specialty cold mill complex currently under construction at Nucor will have annual capacity of approximately 500,000 tons per year and will significantly broaden Nucor’s capabilities in the automotive market. The recently announced galvanizing line will bring 500,000 tons per year of “new coated” capacity by early 2021.
“We are excited to have Calstrip constructing a facility on our site. Investments like our specialty cold mill complex create opportunities like this to bring additional economic development and jobs to the local community,” Vice-President and General Manager of Nucor Steel Arkansas MaryEmily Slate. “Calstrip provides high-quality service to its customers, and we welcome them to Blytheville.”
Calstrip operates three facilities spanning the U.S.-Mexico border located in Mission, Texas; Santa Teresa, N.M; and Mira Loma, Calif. Industries served include appliance, electrical lighting, construction, HVAC, and automotive. The addition of the new facility in Arkansas will add further depth to Calstrip’s existing network of metal service centers supporting customers in the border region, northern Mexico, and southern United States.
Mississippi County is the largest steel producing county in Arkansas and one of the top in the nation. It has more than 5,500 steel workers, according to the Arkansas Economic Development Commission.
“The addition of Calstrip further strengthens the might of the steel industry in Mississippi County,” Gov. Asa Hutchinson said. “And the new advanced manufacturing jobs being created in Blytheville will go a long way in diversifying the area’s economy and improving the lives of Arkansas families.”
Mississippi County economic developer Clif Chitwood echoed these sentiments.
“Mississippi County is proud to welcome Calstrip to the county’s ever-growing steel industry,” Chitwood said. “As the nation’s emerging steel center, Mississippi County is always ready to help new industry with a cooperative business climate, custom employee training, and a wide range of other initiatives designed to make Mississippi County a great choice for expanding businesses. In Mississippi County, hard work is our greatest product.”