Globalization About to Hit Alabama or Louisiana

By February 22, 2007Dobbs Watch, Trade

ThyssenKrupp, the $61 billion (US) German company, announced yesterday that it has narrowed its search for a new US plant site to Louisiana and Alabama. They are looking to build a $2.9 billion state-of-the-art steel and stainless steel manufacturing and processing facility in one of those two states. This would be the second-largest investment in a new industrial project in the US since 2002.

In the US alone, ThyssenKrupp employs about 25,000 employees, with annual sales of $9.7 billion. This plant will eventually employ about 2,700 people, but the construction phase will require almost 30,000 jobs. According to this company fact sheet, “the new U.S. plant will be a cornerstone of the company’s NAFTA strategy.” (Emphasis ours)

We will keep you posted on their eventual decision, but while the Dobbs-ians rail about “globalization”, they always seem to forget that the door of investment swings both ways. They also forget that NAFTA opened markets for US-made goods and attracted foreign investment, as here. The challenge is to continue to create a climate in this country that attracts manufacturing. We do that by addressing the 32% cost disadvantage we have with our global competitors.

We’ve written in this space before about the positive impact of globalization on Indiana twice South Carolina, Georgia and the US at large. The planned ThyssenKrupp project is yet another reminder of the benefits of free and open trade.

Bring it on.