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Steel company announces 100,000-square-foot Mission plant

Southwest Steel Coil has purchased seven acres in the Mission Expressway Business Park with plans to construct a 100,000-square-foot facility in Mission.

Ed Camden, president of Southwest Steel Coil Inc., a subsidiary of Calstrip Industries based out of Los Angeles, California, made the announcement after the company considered several other cities in the Valley. The company expects to create at least 25-40 jobs. 

20141219 SouthwestEarlier this year, Mission Economic Development Corporation, through a referral from McAllen EDC, began communicating with Southwest Steel Coil Inc. The company, located in Santa Teresa, New Mexico, processes and distributes flat-rolled steel and aluminum.

“The company’s growth in New Mexico has come primarily from helping to create a more local supply chain by capturing business formerly provided to original equipment manufacturer (OEM) companies from outside the local market.  We are hoping to duplicate that business model and success in Mission,” Camden said.

The MEDC authorized the sale for $800,000 at the end of October. The MEDC also authorized $450,000 in incentives for the steel company to locate in Mission.

 “The Mission EDC team has been working with Southwest Steel for the past several months and we are excited to see their hard work has paid off,” said David Deanda, MEDC/MEDA chair. “The creation of up to 40 jobs is a substantial number of new jobs for a city like Mission; these are great jobs that will support families.”

Southwest Steel Coil performs slitting, cutting to length and blanking of carbon and stainless steel, and aluminum from master coils of 40,000 to 45,000 pounds. Its customers include OEMs mainly in the border cities of Mexico, but also in New Mexico, Arizona and Texas.

“This project is not only an example of two neighboring communities, like Mission and McAllen, working together to strengthen the region but an indication of the region’s business-friendly climate, commitment to customer service and it’s highly skilled workforce,” said Alex Meade, Mission EDC chief executive officer.

In August, the Mission Redevelopment Authority agreed to spend $300,000 to expand rail lines to the proposed site. The money will be taken from $6 million budgeted for improvements at the park. At that August meeting, Meade said the original plan was to construct a 60,000 square foot building in the first phase of the building, but Calstrip had been considering a larger facility.

“The project is a big deal for us,” Meade said at the time. “The company is looking at investing between $16 million and $20 million.”

Calstrip had asked for tax abatements from both Hidalgo County and the city of Mission, but because the Mission site is within the tax increment reinvestment zone, the county’s share of the property tax improvements go back into the TIRZ, which is managed by the Mission Redevelopment Authority. That meant the county couldn’t give Calstrip a tax abatement because those taxes are going to the authority.

 “Southwest Steel’s expansion into Mission is a testament to the prosperous business climate that this region offers,” said Mayor Norberto “Beto” Salinas. “I am thrilled about the expansion, and I am fully supportive of their decision to bring additional jobs and added revenue to our community.”

For more information, please contact: Mission EDC at (956) 585-0040.

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