The HWH Group Completes Tax Credit Financing for CMC Steel Recycling Plant; Largest Manufacturing Investment in Oklahoma History
On December 24, 2015, The HWH Group facilitated the closing of a $51.5 million federal New Markets Tax Credit (NMTC) financing which played a pivotal role in advancing the development of a $250 million steel micro-mill for client Commercial Metals Company (CMC) in Durant, Oklahoma. The facility will utilize sustainable processes pioneered by CMC in cleanly recycling a virtually endless supply of raw material otherwise destined for landfills. CMC, a global Fortune 500 company founded in 1915 and based in Irving, Texas, is one of the world’s largest recyclers and manufacturers of metals. CMC operates six mills in North America and Europe, with an annual production capacity of five million tons.
The completion of the first NMTC financing included an equipment tranche and a real estate tranche through four Community Development Entities (CDEs), as well as a wide-ranging package of incentives from local, regional and state entities. The NMTC financing generated in excess of $10 million in net benefit to CMC, coupled with significant investments from the Governor’s Quick Action Closing Fund ($4M), the Durant Industrial Authority ($4.6M), the Choctaw Nation as part of their certified Promise Zone ($2M), Tax Increment Financing Bond Finance, and local utilities, which initiated new infrastructure support work in anticipation of construction and production requirements.
The Durant electric arc furnace (EAF) micro-mill facility will produce an annual 380,000 tons of rebar used in construction and infrastructure. It will incorporate innovative technology in which recycled scrap feedstock is melted, cast and rolled in one continuous process from input to shipping, eliminating the traditional fossil fuel-fired blast furnace and reducing carbon emissions by more than 58 percent.
Site preparation is currently underway, a plant manager is in place, and the project is moving forward.
The HWH Group, based in Paris, Texas, is the site selection and incentives unit of Harrison, Walker & Harper. The HWH Group serves as growth consultants for national clients seeking to expand their businesses or institutions, and are trusted experts in facilitating New Markets Tax Credits and other economic development and financial programs.
The CMC Durant, OK micro-mill will be patterned after an established mill in Mesa, AZ.