Carpenter Technology to expand plant with $354M investment
Sep. 16—Carpenter Technology in Limestone County on U.S. 31 plans to invest $354.25 million in a project that it said will yield 62 jobs over three years.
"They came down there in 2012 on a 231-acre site. And they came in that time with a $500 million capital investment bringing in over 200 jobs," said President and CEO of Limestone County Economic Development Association Bethany Shockney.
"Then again in 2018, they expanded across the street to the south. They renovated the Delphi plant, added an engineering project. ... That was a $20 million investment for an engineering facility with over 50 jobs."
The company is involved in the manufacture of specialty metals, especially for the aerospace industry.
Shockney said they are coming back to the county now with news of a $354.25 capital investment.
"This is for another 62 jobs minimum over a three-year period of time. That's a very conservative number of jobs to be added; they really think it will be more than that," she said. "Also, the state of Alabama has been very supportive of this. They've given a competitive incentive package as well for them at the state level. ... It will include a lot of training incentives."
At Monday's Limestone County Commission meeting, the commission unanimously approved an abatement of non-educational taxes for Carpenter Technology.
In sales and use taxes during construction, Carpenter will save $6.085 million, and the schools will receive $3.485 million.
There will be a property tax abatement for 10 years. Carpenter will save about $10.4 million but will pay the schools about $8 million over a 10-year period.
"We're pleased that they have selected Limestone County to invest and expand," Shockney said.
Also at the meeting, there was a resolution passed "concerning the contribution of funds to Carpenter Technology Corporation to construct, equip, develop and install a vacuum induction melting furnace in Limestone County pursuant to the project agreement. Limestone County will reimburse Carpenter Technology $75,000 over a period of three years for expenses incurred in connection with the project," the resolution says.
Limestone County Commission Chairman Collin Daly said Carpenter asked for an employee incentive package. He said they have done this with several industries.
"A lot of industries, if they come to town and say they're going to create 62 jobs, they may ask for $100 per employee or something like that to create those jobs," Daly said. "That contract says $75,000. It's like $1,200 per employee over a three-year period if they meet that requirement."
Daly said if they create the 62 jobs over a three-year period, they get to keep the funds.
"If they don't do that, complete the investment, if everything doesn't come to fruition, then they have to pay back the $75,000," he said.
Daly said they do not mind giving the incentive.
"But if they don't create the jobs and all they said they were going to do, they've got to pay that much money back," he said. "They may hire 100 people, but they must, by law, have the 62 to qualify for what we've done, the agreement we have with them."
Carpenter Technology, based in Philadelphia, has a market cap of over $12 billion, had $2.8 billion in revenue in fiscal 2024 and has over 4,500 employees worldwide.
The company, founded in 1889, engages in the manufacture, fabrication and distribution of specialty metals in the United States, Europe, the Asia Pacific, Mexico and Canada. The company offers specialty alloys, including titanium alloys, powder metals, stainless steels, alloy steels and tool steels, as well as metal powders and parts. It primarily serves the aerospace, defense, medical, transportation, energy and industrial markets.
Source: Carpenter Technology to expand plant with $354M investment