PLAN TO EXPAND, impacting local economy

Future for growth in Northwest Louisiana is looking bright heading into 2014.

Several businesses made news by announcing opening new facilities/ construction, re-opening of facilities previously closed, systems upgrades and expansion – all which lead to more jobs for residents and an overall increase in revenue in the area.

Many businesses are taking advantage of incentive programs put together by Louisiana Economic Development in Baton Rouge, which include tax incentives and exemptions, as well as participating in the LED FastStart program – the No. 1 state workforce development training program in the nation.

“I’m very bullish on the future of Northwest Louisiana, given such great assets as the Red River port system, the completion of Interstate 49 to Arkansas, Barksdale Air Force Base ... and many more,” Stephen Moret, secretary of Louisiana Economic Development, said. “Construction is well underway on the most significant manufacturing project in the region’s recent history – Benteler Steel/Tube’s $975 million, two-phase steel tube mill/steel mill and a companion $22 million Center for Advanced Manufacturing and Engineering Technology at Bossier Parish Community College. Combine these expansions by Benteler and Teleperformance with the establishment of the U.S. Air Force’s Global Strike Command at Barksdale, the continuing emergence of the digital media, software development and entertainment sectors, continued oil and gas activity ... new glassmaking R&D investment by Libbey Inc. in Shreveport ... and Ronpak’s corporate headquarters and manufacturing project in Shreveport – and the future of the region is very bright,” Moret said. “Equally important, Northwest Louisiana currently is in competition for multiple exciting economic-development projects,” he said. “I’m optimistic that Northwest Louisiana is poised for significant job growth over the next few years, based on the number of firms making substantial capital investments and based on the job growth that will accompany those projects – not to mention the potential for additional announcements in 2014.”

Here are just a few of the many businesses making an impact on Northwest Louisiana.

BENTELER STEEL/TUBE

One of the largest projects solidified in 2013 was Benteler International breaking ground at the Port of Caddo-Bossier in Shreveport. The Paderborn, Germanybased Benteler Steel/Tube chose Caddo Parish from more than 100 applicants in 13 states to build its first manufacturing facility in the United States. Production of their hot rolling steel tube mill will provide products for use in the oil and gas industry, the automotive industry, and other industrial applications. Upon completion, the facility will cover a total of 1.35 million square feet, with an investment of almost $975 million. “This new manufacturing facility – our first in the United States – is an important part of our global growth strategy,” Matthias Jaeger, president and chief executive officer at Benteler Steel/Tube GmbH, said. “With more than 25 percent of our steel/tube products already flowing into the United States, and demand expected to increase, this new Caddo Parish plant is poised to play a critical role in supporting the U.S. domestic energy industry.”

An economic-impact analysis performed by Louisiana State University shows approximately 1,540 new indirect jobs will be created which, when combined with the 675 full-time jobs when the mill is at production capacity will bring 2,200 permanent jobs to the area, and could result in an economic impact in the region of $16.2 billion. Jaeger said the construction is on track to be completed in late 2014, with manufacturing operations beginning in the second half of 2015.

BOSSIER PARISH COMMUNITY COLLEGE AND BENTELER STEEL/TUBE

Not only will Benteler Steel/Tube have their steel tube mill under construction, the company has also partnered with BPCC to create the Center for Advanced Manufacturing and Engineering Technology. The training center will initially work with the instructional needs for Benteler employees, but once that need is filled will provide training services for other manufacturers in the region. The $22 million project is already underway, with a completion goal of May 2014.

“One of the key decision points for a company in evaluating a site is the availability of a skilled workforce or the potential to develop one. The Center for Advanced Manufacturing Technology on our campus will enable [BPCC], in partnership with LED FastStart to deliver on our promise that the workforce of North Louisiana is second to none,” BPCC Chancellor Dr. Jim Henderson said. “Benteler’s investment in North Louisiana will dramatically affect our regional economy in a positive way. The decision is validation of the collaborative approach by an array of public and private entities to economic development in this region.”

TELEPERFORMANCE

Teleperformance announced in September of 2013 the company will create 740 new direct jobs at its Shreveport customer contact center during the next two years. The company received new customer contracts in the healthcare and telecommunications industries, bringing the need to hire additional employees to service their clients. “Teleperformance is a foreign direct investment facility, as its parent company is based in Paris. FDI projects, such as Teleperformance [and] Benteler Steel/Tube ... strengthen and diversify the economy with additional sources of incoming wealth and job creation,” Moret said.

They began hiring more than 400 employees in 2013, and will continue adding to their team in 2014 until they reach their target of 740 new jobs. In addition to the direct hiring, there will be an estimated 637 indirect jobs added, taking the increase in jobs to more than 1,370.

LIBBEY INC.

After an announcement in February 2013 they were going to cut 200 jobs due to changing market demand and foreign competition, Libbey Inc. rebounded in November and proclaimed the company’s plans to invest $20 million in their Shreveport manufacturing site. The investment in new glassmaking technology will create 70 direct jobs at an average salary of $38,000 plus benefits, as well as 75 new indirect jobs. The Shreveport location will retain 511 existing jobs.

“This new investment in technology will enable us to compete more effectively in a broader marketplace. We appreciate the LED’s partnership in working with us to make our vision for this new technology a reality,” Dan Ibele, Libbey Inc. executive, stated in a press release.

Shreveport Mayor Cedric Glover said the Libbey Inc. investment is encouraging for the city.

“Libbey Glass is one of our best corporate citizens, and I know the jobs being created as a result of this announcement will be a great boost not only to the prospective employees but to their families as well,” Glover said.

LED offered the company an new incentive package that includes a $500,000 Modernization Tax Credit to be claimed over five years after the investment is made.

COOL PLANET ENERGY SYSTEMS

Next year will see new construction at the Port of Natchitoches when Denver-based Cool Planet Energy Systems builds one of its three new bio-refineries in Louisiana. The project will create 24 new direct jobs. Cool Planet will harvest wood waste and forest byproducts to make gasoline – each bio-refinery will be capable of producing 10 million gallons of high-octane, lowvapor pressure gasoline. In addition, Cool Planet will also market biochar, a byproduct of the refining process that will be used as an agricultural supplement to boost water retention and reduce carbon released from crops. The process makes the overall production an carbon-negative process – meaning the project will achieve a net reduction of greenhouse gasses.

“Between the workforce and training and the help from the [LED] group, [Louisiana] came out on top. We did a runoff of the top 10 states, s, and most of those were in the South. Louisiana came out on top due to the incentive programs, the workforce training and a number of other things,” Mike Rocke, vice president of business development for Cool Planet, said.

HONEYWELL

Honeywell is another company taking advantage of doing business in Louisiana. “Honeywell earlier this year announced it would invest $99 million in its Shreveport facility, which makes catalysts used in refining. The Shreveport facility is part of our UOP business, which supplies process technology, equipments, catalyst and other materials and services to the refining, petrochemical and natural gas industries,” John McCarthy, spokesman for Honeywell, said. “The Shreveport investment was part of a larger $208 million total investment in four Louisiana plants that is being supported with state and local incentives.

The investment in Shreveport will add 27 new jobs to the 235 at the plant currently, as well as supporting local construction jobs,” McCarthy said.

ROYOMARTIN

Employing almost 2 percent of Natchitoches Parish, RoyOMartin announced plans for expansion in May 2013. The $20 million expansion will upgrade drying equipment and add another production line to its plywood facility in Chopin. The project will create 24 new direct jobs with an average salary of $42,000 plus benefits – as well as 56 indirect jobs for a total of 80 new jobs. The company will also retain almost 700 positions. The 90-year-old company manages 582,000 acres of timber and related resources and manufacture wood products.

RONPAK INC.

Ronpak Inc. held a ribbon cutting in June of 2013 for a new manufacturing facility at the Port of Caddo-Bossier. Ronpak announced plans to build a 155,000 square foot paper mill to produce 5 million bags a day for its clients. The company was formerly headquartered in South Plainfield, N.J. but with their relocation, will create a more than 1,000 jobs in Northwest Louisiana. This is Ronpak’s first new manufacturing location since 1985.

WEYERHAEUSER

Weyerhaeuser Company continue to modernize and upgrade equipment at their Natchitoches forest products plant.

“This investment reflects the commitment of our company in this community and is a result of the tremendous work ethic and dedication of our associates and the local workforce,” Weyerhaeuser Company Plant Manager Steve Story said in a press release. “This investment will allow our workforce to grow and our operation to achieve increased efficiencies and process improvements.”

The 30 direct jobs, combined with the LED’s estimate of an additional 77 new indirect jobs at the plant, will help to provide more productive operations. The company took advantage of the LED FastStart program as well as additional incentive programs.

IDAHO TIMBER

Idaho Timber made the announcement in May 2013 they were reopening their sawmill in Coushatta, which was closed in 2008 as a result of the recession. A $3.5 million capital investment from Idaho Timber in Boise, as well as taking advantage of the LED FastStart program and other incentives lead to the reopening. Idaho Timber produces radius-edge decking, dimension lumber and other timber products crafted from southern yellow pine.

“Our decision to acquire the former Hood Industries sawmill in Coushatta was influenced by the flexibility of the facility’s manufacturing capability, the knowledgeable and skilled workforce located in the community and surrounding area, and an adequate timber supply,” Idaho Timber CEO Ted Ellis said in a press release provided by LED. “Combine these factors with our strategic desire to grow our company within the Southern producing region of the United States, and Coushatta became a great opportunity to accomplish our objective.”

The $3.5 million investment for reopening created 90 new direct jobs, 289 new indirect jobs for a total of 370 new jobs.