Steel tubing manufacturer, Altex Tube, will open its $110 million facility on the Steel Dynamics Inc. campus by mid-October.
CEO Zach Smith told The Dispatch the company has finished most of the construction for the new 100,000-square-foot plant at 1923 Airport Road and is now preparing the building for heavy equipment installation.
“We’re putting in the foundation down now for the equipment,” Smith said. “The rest of the equipment is starting to trickle in from Italy. So as it comes in, we’ll be installing it.”
Once complete, the plant will produce 100,000 tons of metal tubing using SDI’s black and pre-galvanized steel coil products. Black steel has not been coated with zinc or paint. Pre-galvanized steel is processed and coated before being sized and cut into tubes.
To celebrate the final leg of the project, Smith said the company held a blessing ceremony June 26 to commemorate its new location by writing Bible verses and tying them to a piece of exposed foundation before pouring concrete over it.
“My verse actually was Proverbs 27:17, which is ‘Iron sharpens iron so as one person sharpens another,’” Smith said. “I think the current and future success of this project comes from like-minded people believing in each other and working as a team.”
The plant will hire 60 employees with salaries between $70,000 and $75,000 but will start operations with 30. Smith said that number will increase as the plant ramps up production throughout its first year.
Smith said the company is considering a timeline to expand its production beyond the 100,000-ton mark the first year — increasing to 300,000 tons in year two — which will add further equipment to the “under roof” area of the plant, but he could not disclose further details at this time.
Primary customers for the plant will mostly consist of steel service centers, which purchase materials such as steel tubing in bulk, then resell them to general consumers, Smith said.
“Where we sell truckload quantities, they have to be able to break it down and sell it to the farmer down the street that needs something for his bush hog,” Smith said.
Golden Triangle Development LINK Chief Operating Officer Meryl Fisackerly said Altex Tube chose its location to cut out freight cost of the steel materials from which it makes tubes, as well as to form a strategic partnership with SDI.
“The continued growth is always exciting to see and just how fast (Altex Tube) has been able to build their building is really just impressive to watch,” Fisackerly said. “Having them here and operating here is going to be really great for SDI as well for our community. You pull out of the (Golden Triangle Regional Airport) and the first thing you see is Altex Tube, a big, bright, shiny new building. It really makes a statement.”
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