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OKLAHOMA CITY – Outgoing Governor Mary Fallin expressed appreciation to the HWH Group for its decision to select Durant as the site for Salem Tube’s North American headquarters and advanced manufacturing facility.
“This investment by Salem Tube is great news for our state, and also the latest proof of our continued efforts to diversify and grow manufacturing jobs throughout Oklahoma,” said Fallin
The Durant City Council has approved a Tax Increment Finance District for the project. Paul Buntz, interim director for the Durant Industrial Authority, said dirt work has already begun on the site at Country Club Road, State Highway 78, and the Highway 70 Bypass. It is within the Durant city limits and the Calera Independent School District.
The plant will contain approximately 150,000 square feet of high-tech, precision manufacturing space with corporate headquarters office space.
Robbie Ruminer, HWH Group president, said: “Salem Tube is on-shoring manufacturing operations to the U.S. The project combines 140 high-quality, accessible manufacturing jobs and Salem Tube’s North American headquarters with managerial positions.”
Salem Tube, a Tubacex Group company, is a global manufacturer of high-precision stainless steel tubing and nickel alloy tubes. Tubacex is headquartered in Llodio, Spain, and has industrial facilities and a broad network of sales offices spread around the world. It exports to more than 100 countries worldwide with a total global workforce of about 1,800 employees.
Craig Hughes, HWH Group vice president of real estate and development services, conducted a 12-state site search along the Gulf Coast from New Mexico to North Carolina. More than 250 sites were evaluated, including 67 existing manufacturing facilities over a 12-month process.
“It was a very competitive process with a number of communities really stepping up in an effort to earn this marquis headquarters and manufacturing operation for their community,” Hughes said. “HWH was able to generate broad support for the project and was able to negotiate and secure a substantial incentive package that included the creation of a Tax Increment Financing district. The Oklahoma Department of Commerce working in conjunction with the local Durant officials put together a very compelling package that made the difference at the end of the day.”
HWH arranged for and fully allocated $34 million in New Market Tax Credits to the Salem Tube project. NMTC is a federal program which offers tax incentives to businesses that invest in rural or economically distressed areas.
“Our volunteer advisory board, governing board, staff, and management have worked hard to provide NMTC financing in rural Oklahoma,” said Scott Dewald, REI Oklahoma president and chief executive officer. “This program provides critical financing where it is most needed, and we are excited about the valuable economic opportunities that this project creates.”