News

Railcar manufacturer chooses the Shoals

The No. 1 local story of 2007

Matt McKean/TimesDaily
Matt McKean/TimesDaily
Construction work at the new railcar plant at the Barton Riverfront Industrial Park has begun.
Published: Sunday, December 30, 2007 at 3:30 a.m.
Last Modified: Saturday, December 29, 2007 at 11:54 p.m.

The announcement that an employer looking to hire 1,800 workers had decided to locate in Barton Riverfront Industrial Park culminated a tense time for local and state leaders.

The players and their roles
Gov. Bob Riley: Heavily involved in negotiations and committed state personnel and resources.
Greg Aziz: Led negotiations for National Industries of Canada; he is the company's CEO.
Neal Wade: Handled negotiations for the state as director of the Alabama Development Office.
Forrest Wright: Information and negotiations were funneled through Wright and Shoals Economic Development Authority staff.
U.S. Rep. Bud Cramer: Held numerous meetings and initiated calls geared to resolve issues.
State Sen. Bobby Denton: Pushed legislation through state Senate for approval of half-cent sales tax.
Retired Systems of Alabama Executive Director David Bronner: Committed financing for company to build plant.
Other players:
- Colbert, Lauderdale commissioners who sought and approved half-cent sales tax to be used for incentives.
- Mayors of Florence, Muscle Shoals, Sheffield and Tuscumbia who helped develop options to raise money for incentive package.
- Macke Mauldin, past SEDA board chairman, for leading effort to find funding mechanism to help area pay for its commitment to the project.
- Bill Taylor, of Mercedes of Alabama, who consulted on project and led tour of Mercedes operation in Vance.
- Tennessee Valley Authority officials who made initial contact, relocated power lines and worked with local utilities departments.
- Economic Development Partnership of Alabama officials who worked with state and local officials and company officials during process.
- Northwest-Shoals Community College personnel who surveyed available work force with welding experience and provided training.

But when Canadian railcar company National Steel Car Limited announced that it would be investing $350 million into building a Shoals-based manufacturing facility known as National Alabama Corp., there were hundreds on hand to celebrate.

National Alabama's arrival in north Alabama and its anticipated boon to the economy has catapulted it to the No. 1 spot among the Top 10 local stories of the year for 2007.

The process of recruiting the railcar manufacturer started around May 2006. For a little more than a year and right up until the announcement, local and state leaders, both in economic development and government, negotiated with company officials, all the while knowing that Alabama was competing with several states.

"Alabama and the Shoals area really worked very, very hard to try to convince National Steel Car that the Shoals could provide the work force, the quality of life, the logistical requirements and, of course, an incentive package that was good for both the company and the state," said Neal Wade, director of the Alabama Development Office.

Local leaders said the community joined together like never before and was focused on what would best benefit everyone.

"The local community leaders came together and said 'We want this project,' " said Forrest Wright, president of the Shoals Economic Development Authority. "This project is a partnership."

U.S. Rep. Bud Cramer, D-Ala. said all those involved worked extremely hard to get the company here.

"You're not going to get many other chances to land a project this big," Cramer said. "I'm so excited for where we are. This is huge for our area; this is huge for the country by any measure. We pulled off the big one."

State and local leaders developed a plan through the recently implemented half-cent sales tax to create an available source of industrial recruiting funds for an incentive package to offer the company.

Along with financial incentives, the company needed a site that was going to fit its needs, transportation accessibility, close proximity to the market, the population base and educational resources. It also needed a capable work force that could fill 1,800 positions.

The company analyzed its opportunities for the long term, and decided the Shoals fit what it was looking for, said Peter Earle, communications and public affairs counsel with National Steel Car.

"It became very clear that Alabama and this area was the right place to be," Earle said. "You can put the technology in place, but it doesn't work if you don't have the people, the education systems and the sense of importance that the Shoals area brought to the table."

The construction of the mile-long, 2 million-square-foot facility is set to be completed by the end of 2008 or in early 2009. The Barton site will produce 8,000 to 10,000 railcars a year once it's in full operation.

The company will employ a variety of positions, including engineers, production associates, maintenance technicians, information technology and human resources personnel and accountants, not to mention jobs available through contracted work and suppliers.

Before the hiring process will begin, however, Alabama Industrial Development Training is handling pre-employment job training and screening for the company.

State and local leaders say they are pleased with how the project came about and how it's going so far.

"Everybody worked together in a very positive, unified way to make sure this project was successful," said Florence Mayor Bobby Irons, chairman of the Shoals Industrial Development Committee.

Macke Mauldin, past SEDA board chairman, said he is confident about the success of National Alabama and about future economic development opportunities.

"Our community has proven what we can do, and we're getting a lot more attention for what the community has done here," Mauldin said. "The future is the brightest it's ever been."

Kenda Williams can be reached at 740-5720 or kenda.williams@timesdaily.com.


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