An aerial shot of the Steel Dynamics Flat Roll Group-Butler Division at its headquarters in Butler, Indiana. Steel Dynamics is looking to build a flat roll steel mill in San Patricio County. Courtesy photo
A 10-year tax abatement agreement is the carrot San Patricio County commissioners are offering to entice Steel Dynamics to build a $1.8 billion flat roll steel mill near Sinton. The Indiana-based company has several locations under consideration, including sites in Louisiana. On Feb. 25, commissioners officially approved a reason for the company to take a closer look at the Coastal Bend.
Included in the deal is a 100 percent tax abatement for the first three years and a 70 percent abatement for years 4-10. Steel Dynamics would have to meet certain benchmarks to reap these levels of benefits each year.
Benchmarks include creating at least 500 full-time positions with health benefits and training. Of those, 150 would have to be residents of San Patricio or bordering counties, including Nueces County. “Reasonable” efforts would also have to be made to fill a portion of the construction jobs with locals.
Although Steel Dynamics has not yet decided on a location, officials have said the plant will create about 600 full-time positions with annual average salaries of around $75,000 a year.
Earlier this month, commissioners voted to create a reinvestment zone for 2,500 acres of land near Sinton. Steel Dynamics, one of the world’s largest domestic steel producers and metals recyclers, would use 1,000 acres for its flat roll steel mill and a buffer around the complex. The rest of the acreage would be available for other development. The land is located about 2 miles east of the intersection of Texas 89 and U.S. 77.
