Tube Benders Copper

Thomasville courting third metals company

Thomasville officials are recruiting a third metals-related firm to the Clarke County town.

The city's Industrial Development Board last week requested $10 million in tax-free bonds from the state for a location of Metals USA , which processes and distributes steel and other metals.

A state Finance Department document shows that the state has approved the allotment of $10 million in Gulf Opportunity Zone bonds for Metals USA. GO Zone bonds, created by Congress after 2005's hurricanes, allow companies to sell tax-free bonds, borrowing money at lower interest rates than they otherwise could. Companies must borrow on their own credit.

"All I can say at this point is, yes we filed an application for GO Zone, and I have no further comment at this time," Thomasville Mayor Sheldon Day wrote in an email.

A Metals USA (NYSE:MUSA) employee said Friday that only Chairman and Chief Executive Officer Lourenco Goncalves could comment, and said he was out of town. Metals USA, based in Fort Lauderdale, Fla., operates 37 metal service centers nationwide, including one on Woodland Avenue in the Plateau section of Mobile.

The company has three main divisions. One distributes flat-rolled steel and other metals such as aluminum, brass, bronze and copper. One unit, including the Mobile location, sells metal plate, bars and pipes. A third unit makes metal building products.

Metals USA could want to add a flat-rolled service center in the region to process that variety of steel, which is produced by ThyssenKrupp AG in Calvert, the OAO Severstal mill in Columbus, Miss., and Nucor Corp. in Decatur, Ala.

Such centers typically buy metal in large quantities and cut or shape it for re-sale.

As Thomasville tries to diversify its economy away from the depressed wood products sector, it has focused on recruiting metals-related companies, trying to take advantage of the $5 billion ThyssenKrupp complex. Canadian-based Lakeside Steel , which makes steel pipe for oil and gas firms, has announced $57.5 million of investments and 280 jobs for Thomasville over three phases.

Golden Dragon Precise Copper Tube has announced that it will build a 300-job, $100 million plant to make copper tubing as well.

Some other firms have opened service centers in southwest Alabama as well. Ryerson Inc. opened a unit in Mobile in 2010 after buying a metal cutting shop that belonged to bankrupt Bender Shipbuilding & Repair for $3.5 million. SET Enterprises announced in May that it would build a 40-job, $12 million plant in Jackson.

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