V&M TCA, a subsidiary of the French-based Vallourec Group, which operates a heat treatment, threading and finishing operation for seamless steel pipe at their Muskogee Plant, located on 116 acres at the Port of Muskogee, Oklahoma, plans a $11.6 million expansion project.
The firm was awarded a $2 million Economic Development Pooled Financing incentive issued through the Oklahoma Development Finance Authority to assist with its project. The Economic Development Pool was created for bonding to local governments in conjunction with a for-profit entity through Oklahoma Development Finance Authority and is used for economic development projects in the state. It is a competitive program designed to assist strong, expanding business in paying for capital asset investment. Debt issued through the Economic Development Pool may use withholding taxes generated by the for-profit entity to repay the debt.
V&M’s investment and the incentive award will provide the capital for the company to purchase a new piece of equipment, a Bronx Straightener, and increase the physical plant to accommodate the new equipment. The expansion will increase the plant’s production capacity, increase plant efficiency, and reduce raw material and utility costs. The project will increase the number of full time equivalent employees by 25 to approximately 220, the state Department of Commerce said.
“We are very appreciative of this incentive, and the assistance given by the Muskogee City-County Port Authority and the Oklahoma Department of Commerce throughout the application process,” states Brian Sampson, General Manager, V&M TCA, Muskogee Plant. “The award provided the economic justification to move forward with the project at the present time.”
“As governor, part of my commitment to promoting economic growth and job creation in Oklahoma includes meeting with companies looking to invest or expand in our state,” said Governor Mary Fallin. “Last year, I met with key officials from the Vallourec Group in Paris, France and told them about our efforts to build a more business-friendly environment in Oklahoma. We’re excited they’ve expanded their investment in Oklahoma and are happy they are bringing more than two dozen, good-paying jobs to Muskogee and eastern Oklahoma.”
Brien Thorstenberg, Director of Business and Economic Development for the Muskogee City-County Port Authority, explains the project is a result of Oklahoma’s efforts to retain and expand existing business. “On a trade mission last fall, Governor Fallin, the Department of Commerce and our department met with top officials of the Vallourec Group and the General Manager of the Muskogee Plant. Governor Fallin travelled to Paris, France to thank the company for doing business in Oklahoma. The company shared the issues faced by the Muskogee Plant, and we were able to identify a program to help make their company more productive. This expansion strengthens the company’s commitment to our community and to Oklahoma.”