The community of Sinton's future will now be forged in steel thanks to a $1.9 billion flat-roll steel mill which will be built there by Steel Dynamics.
The steel mill, when finished, will have around 600 full-time workers, making easily making it the largest employer in the Sinton area. And with potential partnerships, that number could double.
The site sits on more than 2,400, and everyone involved says that's more than enough room for Steel Dynamics, as well as other partners.
“The site is large enough where they could locate five to ten other companies on that site,” said Tommy Kurtz, V.P. of Business and Strategic Development for the Corpus Christi Regional Economic Development Corporation.
More development also means more jobs.
“That could translate into another 600 jobs on top of the Steel Dynamics jobs,” said John Hobson, Sinton City Manager, who added he’s already heard from other companies that are thinking of setting up shop on the Steel Dynamics property.
Hobson calls the news "tremendous" for his community. However, the plant will be just outside city limits, meaning Sinton won't be able to cash in on millions in tax revenue.
“We may not have a direct financial impact from the company coming here, but we will definitely have an impact,” said Hobson. “Our city will grow.”
Under 10-year Chapter 312 and 313 tax abatement, Steel Dynamics will pay full property taxes on the land value, but none on improvements. Once construction is finished, the company will still pay full tax on the land but will get a 70% tax break on improvements. Over those 10 years, the plant is expected to generate more than $161 million in tax revenue for the county and school district. When the abatement expires, Steel Dynamics pays its full tax burden, and those revenues increase exponentially.
Among the reasons Steel Dynamics picked Sinton are the site’s access to electricity to power its state-of-the-art arc furnace, proximity to two railroad lines with access to a third, and access to water through the Mary Rhodes Pipeline.
“They liked site geography-wise, and infrastructure-wise,” said Kurtz. “The site also pulls from various sources too for labor.”
Once the necessary permits are in place, Steel Dynamics hopes to start construction by early 2020, with the plant opening sometime in mid-2021.
