Lee Lawson thought it would be a watershed moment when he toured Baldwin Preparatory Academy with the owner of a centuries-old German steel company.
As he visited with pupils in the school’s new welding labs, Hermann Butting, the head of the family-run Butting Global, was beaming.
Recalling the cost of constructing the school that opened last August, Lawson, president and CEO of the Baldwin County Economic Development Alliance, said, “That facility really helped spur them to say, alright, this community is investing $100 million in itself and its workforce, our investment could come alongside and energize it even more.”
“With Mr. Butting in the welding labs, we just hit a home run, and he can see the kind of investment we are making in this community,” he continued.
Butting Global is establishing its first production facility in North America in Loxley, thanks to that visit and a $16.1 million incentive package.
The CEO of the company, Marcel Bartels, made the formal announcement at Steelwood Country Club on Wednesday, saying, “We are here to grow, contribute, and stay.”
Incentives
In the Loxley Logistics Center, the business plans to construct a $61.7 million facility that should be finished by the end of 2026.
The business promises to create at least 83 new full-time positions with an average hourly compensation of $30 as part of its deal with the Alabama Department of Commerce.
According to Bartels and Baldwin County EDA, the facility will create 100 new employment with yearly salaries of about $65,000, which is about 34% more than the average pay in Baldwin County.
According to Bartels, all employees in Loxley will be hired locally within three years.
The incentive package is broken down as follows:
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The state is offering an investment credit valued at $9.3 million over 10 years.
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A Jobs credit is also being offered through the Alabama Department of Commerce, valued at $1.7 million over 10 years.
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The state is also offering services through Alabama Industrial Development Training (AIDT) valued at $1 million.
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The Loxley Industrial Development Board authorized sales and use tax exemptions for the construction period that are estimated at $1.9 million.
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Butting Global is also being offered non-educational property tax abatements for 10 years with an estimated value of $2.2 million.
Over the next 20 years, the state expects to add $26.3 million in additional revenue, according to the Department of Commerce. The facility is also expected to generate $118.4 million in additional wages over a 20-year period, according to the state.
When asked if the incentive package influenced his decision to move to Loxley, Bartels said, “Of course.” The business had been considering locations in California, New York, and Wisconsin, among other places.
A little Southern hospitality, he added, didn’t hurt either.
“If I look at this area, I slept in Fairhope for the last four nights,” he stated. I met twenty other runners when I went for a morning run. “Good morning,” they all said, or “how are you?” beneficial. cordial. It’s as vital as incentives, and I had a great time staying here.
Clients, tariffs
The United States and the firm were created at about the same time. It produces welded pipes made of stainless steel as well as other industrial pipes and valves.
According to Bartels, SpaceX, a Texas-based space technology business that Elon Musk started more than 23 years ago, is one of the company’s most well-known clients.
Although many of the company’s North American clients liked their product, he pointed out that Butting Global was not an American company and that his company had been looking into a U.S. presence for around 12 years.
Bartels stated, “We have to change that.” Here we are now.
Although the company’s decision to relocate was not influenced by the possibility of tariffs from the Trump administration, he said that having a U.S. presence will help them avoid future duty rises on imported steel products.
“We made the decision before the Trump tariff increases and before the new administration,” Bartels stated. For us, it has been a long-term choice. We will benefit from it now, of course (to avoid paying exorbitant tariffs). This will also benefit our clients.
Baldwin Prep
Another benefit, according to Bartels, will be the facility’s proximity to Baldwin County Prep.
A short drive from Butting’s Loxley plant is the new vocational and career tech high school, one of the first in the country, located along Alabama State Route 59.
According to him, it’s truly an investment in the future of America as a whole as well as all the young people in Baldwin County. It’s amazing and just what our company needs.
Lawson believes the new school will be an important backdrop for years to come and credited it with securing an economic development deal.
Baldwin Prep was used in the pitch and close for the first time on our project, but he said it wouldn’t be the last.
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