On May 11, 2007, ThyssenKrupp AG announced an investment of €3.1 billion (US$4.19 billion) for building new carbon steel and stainless steel processing facilities in southern Alabama. The announcement came after several months of competition between a site on the Mississippi River in Convent, Louisiana, and a site on the Tombigbee River, near Mount Vernon, Alabama, in Mobile County, about 30 miles north of Mobile.
ThyssenKrupp Steel USA , which represents seventy percent of the project investment, is building a hot strip mill, cold rolling mill, and four galvanizing lines. ThyssenKrupp Stainless USA is building a melt shop and cold rolling mill. Both companies are independent and operate under different management teams. When completed in the spring of 2010, the facilities will process a combined total of 5.1 million metric tons of carbon and stainless steel annually for sale in the NAFTA market and will employ a combined total of 2,700 people.
Additionally, the Alabama State Port Authority is investing over $100 million to build a slab terminal on the southern tip of Pinto Island in Mobile Bay to service the raw material for the carbon steel facility.
The project, alsong with a multi-billion dollar steelmaking facility currently under construction in Brazil, is a cornerstone of ThyssenKrupp Steel's new global expansion strategy into the North American and NAFTA high-value carbon steel markets.
ThyssenKrupp Stainless project delays
On January 23, 2009, ThyssenKrupp announced that in response to the weakened North American stainless steel market and the detoriating global economy, the production startup date for the cold rolling line for ThyssenKrupp Stainless USA would be delayed at least one year while its meltshop would be further delayed until the last quarter of 2011.
ThyssenKrupp Steel USA spokesperson Scott Posey announced that there were no changes to the carbon steel segment's schedule and that the company was expected to begin its operations in spring of 2010 as originally planned.