Spain-Based Salem Tube Chooses Durant, Oklahoma, as North American Headquarters
The plant will contain approximately 150,000 square feet of high-tech, precision manufacturing space with corporate headquarters office space.
“Salem Tube is on-shoring manufacturing operations to the U.S. The project combines 140 high-quality, accessible manufacturing jobs and Salem Tube’s North American headquarters with managerial positions, a sales force and top executives to rural America. Salem Tube’s $40 million capital investment in the facility and an annual payroll of $8 million will be very significant and have a long-lasting positive impact on the Durant community,” said Robbie Ruminer, HWH Group president, a company that assists firms with capital services, site selection, garnering economic incentives and developing macroeconomic development strategies.
“This investment by Salem Tube is great news for our state, and also the latest proof of our continued efforts to diversify and grow manufacturing jobs throughout Oklahoma,” said Governor Mary Fallin. “The jobs Salem Tube is bringing to Oklahoma are good, high-paying jobs that will help improve our overall economy and make us a more prosperous state.
“We know Salem Tube had options when deciding where to locate its North American headquarters and advanced manufacturing facility. Their decision says a lot about the efforts we’ve made in Oklahoma to create a positive business environment and it shows that our state can compete internationally. Sixteen percent of new and expanding jobs are foreign direct investments. I would like to thank The HWH Group and Salem Tube for choosing Oklahoma and bringing exciting job opportunities to Oklahoma,” the Governor said.
Craig Hughes, HWH Group Vice President of Real Estate and Development Services, conducted a 12-state site search along the Gulf Coast from New Mexico to North Carolina, performing due diligence and feasibility studies, weighing factors such as logistics, taxes, energy costs, and available facilities. More than 250 sites were evaluated, including 67 existing manufacturing facilities over a 12-month process.
“It was a very competitive process with a number of communities really stepping up in an effort to earn this marquis headquarters and manufacturing operation for their community,” Hughes said. “HWH was able to generate broad support for the project and was able to negotiate and secure a substantial incentive package that included the creation of a Tax Increment Financing district. The Oklahoma Department of Commerce working in conjunction with the local Durant officials put together a very compelling package that made the difference at the end of the day.”
Steven Hattier, HWH Group Vice President of Finance said, “Rural communities are often isolated from traditional capital sources. The New Markets Tax Credit Program is a proven and targeted tool to redirect capital flow to rural communities to help regain years of lost ground in manufacturing.” HWH said itg arranged for and fully allocated $34 million in NMTCs to the Salem Tube project.
“Our volunteer advisory board, governing board, staff, and management have worked hard to provide NMTC financing in rural Oklahoma,” said Scott Dewald, REI Oklahoma President & CEO. “This program provides critical financing where it is most needed, and we are excited about the valuable economic opportunities that this project creates.”
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