Fri, Sep 05, 2008

Business

Steel firm plans Tucson facility

Southeast Side Macsteel plant will cost $10M
By Joseph Barrios
ARIZONA DAILY STAR
Tucson, Arizona | Published: 04.14.2006
A steel manufacturer announced Thursday that it is planning a $10 million expansion into Tucson by building a plant expected to employ 25 workers over the next few years.
Macsteel Service Centers USA of Newport Beach, Calif., said Thursday that it plans to build a new 73,400-square-foot metals manufacturing and distribution facility on 8 acres at the Century Park Research Center, a manufacturing and warehousing park along the Union Pacific rail line on the Southeast Side.
Alan Levin, owner of the research center, said the company approached him about a year ago and said proximity to a rail line was crucial. Levin and his sons will begin construction next week on a 42-foot-tall, custom-designed plant.
"What is unique about this building is I will be putting my railroad tracks through their building," Levin said. "They have two 35-ton cranes, which is huge, to take these steel coils out of the rail cars and take it from there. There will be no other facility like this in Arizona — Phoenix included."
Macsteel manufactures carbon, stainless steel, aluminum and specialty metal products. It processes everything from tubing, pipes and sheet metal to corrugated steel and stamping for paneled doors.
The new facility is scheduled to open at the end of the year, the company said in a news release. The company will distribute products to customers in the Southwest and Mexico. The $10 million cost of the expansion includes the purchase of the land and construction.
Tucson is a "strategic hub" for the company's business in the Southwest and Mexico, Michael Hoffman, Macsteel president and CEO, said in a press release.
Joe Snell, president of Tucson Regional Economic Opportunities, said the company did not receive any incentives, tax breaks or fee waivers for choosing to open up shop here. Macsteel will apply for job-training grants, Snell said.
● Contact reporter Joseph Barrios at 573-4237 or jbarrios@azstarnet.com.