Germany-based ThyssenKrupp announced that it has selected Alabama as the home of its new state-of-the-art steel and stainless steel processing facility. The facility, a cooperative effort between ThyssenKrupp Steel and ThyssenKrupp Stainless, will be located in Mobile and Washington counties.

Initially planned as a $2.9 billion investment, ThyssenKrupp will now invest $3.7 billion in the facility. The increased investment primarily results from a rise in both steel and stainless steel capacity, as well as the installation of additional equipment to allow further diversification of the product portfolio.

“The facility in Alabama is a key component of ThyssenKrupp Steel’s forward strategy for profitable growth,” said Peter Urban, vice chairman of the executive board of ThyssenKrupp Steel. “We are confident that the plant will position us to maximize our competitiveness in the North American market through a combination of cost and technology leadership.”

Michael Rademacher, vice chairman and chief financial officer for ThyssenKrupp Stainless, said the facility represents the largest investment in the history of ThyssenKrupp Stainless.

“While our direct entry to the U.S. market is perhaps a bold step, it is also a logical and forward-looking one,” he pointed out. “The stainless steel market throughout the NAFTA region offers significant potential, and we are now poised to further strengthen our position.”

ThyssenKrupp conducted extensive due diligence and negotiations in many parts of the United States before making a site location decision. The process began in February 2006 with 67 potential sites in 20 states. From the initial sites, ThyssenKrupp narrowed its search to locations in Alabama, Arkansas and Louisiana. The list was then narrowed to Alabama and Louisiana.

The decision to select Alabama was made based on the criteria the company has been using in the site location process. Decisive factors included logistical considerations of the company’s supply chain from Brazil to its projected customers, operating costs such as electricity and labor, and site-specific capital expenditures.

“This was a very difficult decision,” said Bob Soulliere, president and CEO of ThyssenKrupp Steel and Stainless USA. “Louisiana made an excellent proposal and has many important and valuable attributes for business development. We believe the economic ripple effects of the new plant will benefit the wider regional economy as well.”

The new plant complex, which is scheduled to begin operations in 2010, is expected to be one of the largest private industrial development projects in the United States during the next decade. About 29,000 jobs will be generated during the construction phase. When it is fully operational, the plant will employ 2,700 workers. During a 20-year period, the facility is also expected to yield tens of thousands indirect jobs.

The facility will process carbon steel and stainless steel for high-value applications by manufacturers in the United States and throughout North America. The plant will serve industries including automotive, construction, electrical and utility, in addition to serving manufacturers of appliances, precision machinery and engineered products.

Northrop Grumman to Locate in Auburn

Northrop Grumman Corp. has announced that the company will locate one of its new National Work Force Centers in Auburn, Ala.

According to the Northrop Grumman Web site, “National Work Force Center is part of a new initiative by the company to provide high-quality, cost-effective technology centers within the United States as an alternative to offshoring. As an American company performing national security work, Northrop Grumman has made it a priority to develop an alternative to the offshoring business model. This unique solution — National Work Force Centers — is the first of its kind in the industry.”

Northrop Grumman Corp. is a $30 billion global defense and technology company whose 120,000 employees provide systems, products, and solutions in information and services, electronics, aerospace and shipbuilding to government and commercial customers worldwide.

The company will make its permanent home in the new Auburn Research Park, a 156-acre park located at the southern entrance of the Auburn University campus.

“Northrop Grumman is a home run for the Auburn Research Park,” said Jay Gogue, president of Auburn University. “Its commitment demonstrates the potential the park holds for fueling economic growth in the state and academic and entrepreneurial opportunities for Auburn faculty and students.”

Jimmy Sanford, chair of the Auburn Research and Technology Foundation, said Northrop Grumman is the right fit to begin establishing the characteristics of the facility.

“The park will provide a place for faculty and students to join with businesses to pursue ideas and transfer them into usable products and services,” he said.

In addition to Auburn, Northrop Grumman is putting National Work Force Centers in Rapid City, S.D.; Johnstown, Pa.; Lebanon, Va.; Helena, Mont.; Corsicana, Texas; and a yet-to-be-determined location in West Virginia.

Northrop Grumman currently employs more than 1,300 workers throughout Alabama with a combined annual salary approaching $107 million. Northrop Grumman’s business activities in Alabama support a total of 4,000 jobs across the state.

The company is competing to win a contract from the U.S. Air Force to build the KC-30 Tanker aircraft. If Northrop Grumman wins the contract, it will add 5,000 jobs to its Alabama work force.

The KC-30 program will generate an additional $280 million annually in economic growth in Alabama.

Northrop Grumman and principal KC-30 teammate EADS directly contribute more than $175 million annually to the economy, while the KC-30 supply base injects $200 million annually. The total direct and indirect investment by the entire team is $875 million each year.

“A KC-30 Tanker win will have an unprecedented impact not only in Alabama, but also in the entire Gulf Coast region,” said William J. Canary, president and CEO of the Business Council of Alabama. “Alabama’s business community and work force are energized about the KC-30 program, and we simply can’t wait to get started on this program.”