Text by Michael Dumas

The success of economic development in any community is bolstered by diversification, and Mobile’s thriving steel industry is reshaping our economic landscape and helping forge innovative partnerships in education and skill development.

Mobile area steel goes into a wide variety of products of worldwide import, including automobiles, appliances and locally produced ships.

“We’re fortunate to have such a large steel industry here that will continue to evolve as technology and markets evolve, too,” said David Rodgers, vice president of economic development for the Mobile Chamber.

SSAB Americas

Situated on the southern end of the U.S. Highway 43 industrial corridor in Mobile County, SSAB Americas acquired the IPSCO steel mill in Axis in 2007 and has grown the mill to rely on about 1,000 employees and embedded contractors. SSAB is the largest producer and supplier of heavy plate steel in North America and is a key player in infrastructure, construction and construction equipment.

The SSAB Alabama mill operates twin shell, AC electric arc furnaces and consumes 1.6 million scrap tons of steel a year. Over the last five years, the facility has benefitted from more than $130 million in investment from its parent company, as well as the addition of 30 new positions. That investment expanded the facility’s quench and temper (QT) plate production, which makes stronger steel products.

“With SSAB’s strategy to increase the capacity of QT plate used worldwide, we are uniquely poised to continue to make investments in our heat treat capacity,” said Andy Bramstedt, general manager of SSAB Alabama.

In 2018, SSAB Americas moved its corporate headquarters from Lisle, Ill., to Mobile, deepening the company’s connection to the area. The corporate office employs 60 people.

“Our corporate team has settled into the Gulf Coast lifestyle very well, and SSAB continues to be a strong contributor in this community and for our local K-12 schools and colleges,” said Chuck Schmitt, president of SSAB Americas. “Steelmaking in Mobile County receives incredibly strong support from both the city of Mobile and Mobile County.

“We appreciate it, and SSAB remains committed to producing world-class quality steel here in Mobile for some of the most sophisticated product applications required by our customers.”

Outokumpu

Several miles to the north, Helsinki-based Outokumpu operates a state-of-the-art, sustainable stainless-steel mill. The facility is one of the most technically advanced stainless-steel mills in the United States. Originally built by German conglomerate ThyssenKrupp in 2010, Outokumpu purchased the facility in 2012.

The company considers its workforce to be its greatest asset and directly employs 1,000 in Calvert, with more than 250 independent contractors on site to maintain operations. Some of the Mobile County employees also support operations at the company’s mill in San Luis Potosi, Mexico.

Outokumpu stainless steel can be found in the automotive, appliance, and pipe and tube industries. With a U.S. market share of 21 percent, the company is the No. 2 producer of stainless steel in America and the top producer in Mexico, where it is the only such producer with its own mill.

The company’s leadership credits its connections to the Mobile Chamber and other area business partners as keys to its success, especially the Chamber’s economic development team, which “listened to our needs and was intentional in making sure they connected us to the people who could help us to continue along our path to success,” according to Tamara Weinert, president of Outokumpu BA Americas.

“When Outokumpu acquired the steel facility in Calvert from ThyssenKrupp, we knew this was home,” she said. “Over the past 11 years, we have contributed to the economic growth, employment, and workforce development of this region.

“As a result, we are proud to be the second largest producer of stainless steel in the United States, and we have the cleanest steel in the world – manufactured right here in Mobile County.”

AM/NS Calvert

Nearby in north Mobile County is AM/NS Calvert, a joint venture between ArcelorMittal and Nippon Steel which, since 2010, has been one of the most advanced steel finishing facilities in the world. Fourteen years ago, it was built by ThyssenKrupp as part of the company’s overall south Alabama footprint, but it was sold in 2014. The facility is celebrating its 10th anniversary in Calvert.

AM/NS Calvert employs 1,600 and has the capacity to produce 5.3 million tons of flat-rolled carbon steel products annually and is currently building a steelmaking facility on its 2,400 acres with the goal of operation beginning in 2024. The company produces steel in service of the automotive, construction, pipe and tube, and appliance/HVAC industries.

AM/NS Calvert plays an integral role in helping ArcelorMittal meet the increasing original equipment manufacturer (OEM) demand for advanced high-strength steels needed to produce lighter-weight, more fuel-efficient vehicles. Its LME-resistant (liquid metal embrittlement) 3rd-Generation Steel has been recognized as the world’s most advanced product of its type.

“We have never been more excited about the growth and potential on the horizon,” said Kristen Mosley, team manager for communications and corporate responsibility. “The Highway 43 corridor is built for collaboration and innovation, and the support we have received for growth is thriving, and we couldn’t ask for a better partner in the Mobile Chamber, Mobile County and the city of Mobile.

“Together we unite our strengths to achieve common goals and make a difference in our local communities, giving back along the way.”

Borusan Berg Pipe

Opened north of the Africatown Bridge along the Mobile River in 2008, Borusan Berg Pipe manufactures and coats large-diameter pipes for use in the oil and gas industries. While the company’s headquarters are in Panama City, Fla., Borusan Berg Pipe employs more than 175 people in its Mobile facility and is a market leader in large-diameter steel pipe manufacturing.

Its guiding principle is “Integrity…of our product… of our people,” and the company continues to pursue the goals of unswerving customer focus, innovative service and unsurpassed pipe quality.

Austal USA

Known primarily for producing aluminum-hulled vessels such as the trimaran Littoral Combat Ship (LCS), Expeditionary Fast Transport (EPF) and Expeditionary Medical Ship (EMS), Austal USA has recently added steel ships to its portfolio. The company is Mobile County’s largest manufacturing employer with more than 3,000 employees, and it plans to add an additional 1,200 over the next year to help work with steel as well as aluminum. Some of the steel used by Austal is produced at SSAB Alabama only a few miles to the north.

Its new steel line already includes four ships for the U.S. Navy: the Navajo-class T-ATS, which is a hybrid of an oceangoing tug and a rescue and salvage ship. In addition to the T-ATS, the company will also build Naval drydocks and up to 11 steel-hulled Offshore Patrol Cutters for the U.S. Coast Guard.

Mobile: Alabama’s New Steel City?

While trends in primary metals are declining in both Birmingham and the United States as a whole, the Mobile area is moving deep into the black thanks to these global companies that have found success and continue to invest in Mobile. According to labor analytics firm Lightcast, since 2007 Mobile has seen an uptick of 208 percent, while Birmingham has declined by 33.5 percent and the U.S. by a total of 18.6.

Significant advancements in innovation and technology have made steel production cleaner than ever before. These advancements, as well as hundreds of millions of dollars in investments and a concerted effort of public and private support, have helped the Mobile area economy reach dizzying heights of industrial diversification and expansion.

All the companies mentioned here invest significant funds and manpower hours developing dual enrollment, apprenticeship, job shadowing and internship opportunities through the local high schools and community colleges.

According to the Mobile Chamber’s David Rodgers, there are 19-year-old students graduating from programs facilitated by places like Citronelle High School and Bishop State Community College making $75,000 per year with no debt.

“With their leadership and help with curriculum, students are coming out ready to go into their operations, which has made a huge difference,” Rodgers said.

Those efforts help train tomorrow’s workforce today so that the communities that contain these facilities also benefit from the employment they need to operate.

Originally appeared in the May 2024 issue of Mobile Bay Magazine