Wednesday, October 3, 2012

Corporate welfare a loser for Alabama on steel mill

Posted By on Wed, Oct 3, 2012 at 12:48 PM

MONEY LOSER: Thyssen Krupp mill in Calvert, Ala.
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  • MONEY LOSER: Thyssen Krupp mill in Calvert, Ala.

There's an Arkansas angle here in a tale of corporate welfare that appears to be playing out poorly.

The Wall Street Journal reports that ThyssenKrupp is pulling the plug on an $11.8 billion steel mill in Alabama. High production and transport costs, a weakening market and competition were listed in the article as factors.

Remember when Arkansas and Louisiana came down to the final round in the competition for this plant about five years ago? Alabama won with a whopping $1 billion worth of incentives and credits. Seems like the Arkansas site near an earthquake fault line was mentioned as a negative, but money did most of the talking, the kind of money that has encouraged the legislature to create a super fund to give away megabucks to corporate titans like Thyssen Krupp.

Please note that the steelmaker feels it met its obligation in getting the plant running and need pay none of that billion back.

OK then. Thanks for the memories.

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