The chances of Lowndes County being the future home of an aluminum mill that employs 650-plus people have taken a step back.
American Specialty Alloys officials have been informed that 826 acres of land in the Golden Triangle Industrial Park that had been reserved for the company’s planned $1.2 billion plant are now open to other potential projects. Joe Max Higgins, the CEO of the Golden Triangle Development LINK, said the decision was made about two weeks ago after the company failed to provide assurances requested by LINK officials.
The land had been reserved for American Specialty Alloys (ASA) for nearly a year.
The company issued a press release in November detailing plans to build a 1.4 million square foot plant that would produce 600,000 tons of aluminum a year. The release also stated that the plant would create 650 to 850 jobs, begin operations in late 2016, and be located “in the southeastern United States.”
Early signs pointed to it coming to Lowndes County.
Officials with ASA incorporated in Mississippi in March. They approached LINK officials looking for a potential site. They established an office off Military Road in Columbus. They applied to the Mississippi Department of Environmental Quality in September for a permit to prepare a site along the Tennessee-Tombigbee Waterway in Lowndes County.
But the company has yet to announce an official site for its plant and Higgins, in an interview with The Dispatch on Friday, said that to his knowledge, ASA officials have “yet to secure the requisite funding” for the project.
Dr. Roger Boggs, the company’s founder and chief executive officer, told LINK and county officials he had funding in place and had retained a financial expert to execute the plan, according to Higgins.
“We have yet to see the plan and we have yet to meet the financial expert,” Higgins said, adding that he has been unable to contact Boggs via telephone, email or certified letter for more than a month.
While 826 acres near the Golden Triangle Regional Airport were reserved for ASA, the LINK was not able to present the land to other industries looking to locate in the Golden Triangle.
“We could not continue to do this,” Higgins said. “So we notified Dr. Boggs a couple of weeks ago that we are no longer reserving the site for his project and we will make it available for other potential projects. To date, he has not responded.”
The Dispatch contacted ASA on Friday. When told that LINK and Lowndes County officials were no longer reserving the site for the company, George Riel, chief marketing officer, said, “I don’t know why Joe Max would say that.”
Riel also said he could not comment on the site location.
“We’ll be making a public comment on the site in the next two to three weeks,” Riel said. “The project is progressing nicely and is on track.”
Trying to make a deal
Higgins said the LINK was first approached by ASA officials on March 17, 2014.
Higgins said that during that meeting, Boggs told the LINK his company was undertaking the development of a metal alloys manufacturing plant, which would be valued at $500 million and generate around 600 jobs. A subsequent press release from ASA, however, claimed the plant will be valued at $1.2 billion.
Higgins said he has seen no documents indicating costs of more than $650 million.
Boggs requested a 1,000-acre site with an electrical load of 300 megawatts. He wanted the site to have rail access. The LINK later presented him with the 826-acre site in western Lowndes County. The property is owned by the Lowndes County Industrial Development Authority.
“Following his review of the site, Mr. Boggs agreed and informed us that the site would fit his needs,” Higgins said.
In early April, the LINK presented ASA with an incentive package to help develop the site. The LINK also retained engineers, lawyers and other professionals at its own expense to work on the project.
The LINK told Boggs that before the project could be made public, the company would need to provide the county and the LINK with binding financial commitments and proof of finances; a memorandum of understanding outlining the deal between the company and local entities; and prepared legislative language to present in a bill to a special session of the Legislature.
Higgins said he felt more confident in the project when ASA officials introduced the LINK to key personnel of a major international aluminum production and pollution equipment manufacturer. Higgins said Boggs told officials that the manufacturer would play a major role in financing the project. At that point, the project entered discussions with state officials.
In September, Boggs met with various state officials in Jackson with representatives from the LINK.
“As a result, the need for a special session (of the Legislature) was discussed and tentative dates were even selected for the proposed special session — contingent upon…documentation of funding,” Higgins said.
In October and November, the LINK met with Boggs’ lawyers and state officials to finalize a memorandum of understanding. But no agreement was finalized, Higgins said.
Location up in the air
When contacted after the November press release announcing plans to build in the “southeastern United States,” Boggs said sites outside of Lowndes County might be in the running for the facility, including Arkansas, Tennessee, Louisiana and Alabama. He said the company has permits “in place” in other states as part of its effort to select sites.
Higgins said the talk of other states being involved concerned LINK officials.
The November press release by the company was a breach of protocol when trying to bring in a project, according Lowndes County supervisor Harry Sanders.
“The LINK hadn’t said a word about it,” Sanders said. “We don’t until the project is sealed.”
Higgins said Boggs approached the LINK in mid-December and asked for an additional three months to secure the site. The LINK assumed he needed more time to finalize finances. Boggs was told he could have an extension to reserve the site until April 1, 2015 — under the condition that he submit a letter saying Lowndes County was ASA’s preferred location and that no other sites were under consideration.
Boggs, according to Higgins, would not agree.
Higgins added that the written financing commitment the LINK asked for from the company has not been provided.
Open door
LINK and county officials believe the market for a mill that produces aluminum for the automotive industry is tremendous.
“Should Mr. Boggs find success in obtaining this requisite financing commitment for all the funding required to complete the project, we will be happy to readdress a consideration for the site, along with local incentives previously proposed,” Higgins said. “But until that time, we have a responsibility to aggressively market the site to attract new jobs and investment to our community.”
Within the past week, ASA officials have issued press releases regarding the hiring of a chief operating officer and a vice president of construction and infrastructure.
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Quality, in-depth journalism is essential to a healthy community. The Dispatch brings you the most complete reporting and insightful commentary in the Golden Triangle, but we need your help to continue our efforts. In the past week, our reporters have posted 37 articles to cdispatch.com. Please consider subscribing to our website for only $2.30 per week to help support local journalism and our community.
