Executives at Big River Steel are reportedly considering diversifying the company’s production offerings and increasing production of existing lines. The possibility of expanding to new site has also been discussed, according to media reports, with discussions reportedly underway with Texas port officials over the last several months.
Brownsville, Texas is under serious consideration for a $1.5 billion, advanced flex steel mill identical to Big River Steel’s new plant in Osceola, Arkansas. Big River is expected to decide within a few months whether to build a new mill in Texas or expand its Arkansas operation. Preliminary planning of the mill would be to supply the automotive and vehicle component industries in Texas and Mexico with a workforce of approximately 500.
The proposed project would require two years of engineering and permitting, and two years of construction. Annual steel production is estimated at 1.6 million tons with ferrous scrap feedstock requirements of 2 million tons, of which 25 percent could potentially be sourced locally.
Texas, like Arkansas, is expected to make incentive proposals, including property tax abatement to attract the project using Tax Code Chapter 313, or the Texas Economic Development Act, land discounts and bond financing. The Act allows a school district to offer a temporary limit on school property tax on the value of new investment. Big River Steel is seeking standard new business incentives worth at least 10 percent of the project or $150 million.
Recent upgrades to the regional power grid are expected to support a project of this magnitude.