Alliance Steel Chooses Gary, Indiana, for Expansion Plans
12/06/2018
The company, which started in Bedford Park, Illinois, and currently employs around 100 associates, will invest $19.7 million to establish operations in Gary, purchasing and equipping a 250,000-square-foot facility at 2700 E. 5th Ave. The new facility will allow Alliance Steel to expand its flat-rolled steel supply and coil processing and to grow its customer demand within the automotive, construction, agriculture, transportation, energy, material handling and appliance industries. The company plans to begin renovations in early 2019.
According to state officials, Alliance Steel expects to be operational in northwest Indiana by January 2020. With the expansion, the company plans to increase workforce training on new equipment and add drivers to handle the extra volume.
"Northwest Indiana and Gary are making all the right moves to recreate a very promising industrial area, and Alliance Steel hopes to be one of the cornerstones that provides a track for this new cycle," said Andy Gross, President & CEO of Alliance Steel.
Alliance Steel has manufactured flat-rolled steel supply and coil processing for nearly 20 years. Gross purchased Alliance Steel in the late 1990s and has transformed the small toll processor into a state-of-the-art steel distributor and service center.
The Indiana Economic Development Corporation (IEDC) offered Alliance Steel up to $1.85 million in conditional tax credits and up to $150,000 in training grants based on the company's job creation plans. These tax credits are performance-based, meaning until Hoosiers are hired, the company is not eligible to claim incentives.
The IEDC also offered up to $900,000 in conditional tax credits from the Industrial Recovery Tax Credit (DINO) program, which provides an incentive to invest in former industrial sites and improve quality of place in Indiana communities. In addition, the city of Gary offered additional incentives.
"Today's news is an exciting step forward for the city of Gary and for the northwest Indiana region as we welcome Alliance Steel to the Hoosier state,” Governor Eric J. Holcomb said. “Our fiscally-predictable, pro-growth business climate paired with communities that are ripe for growth provides a unique advantage for companies like Alliance Steel to grow their operations with the support of a skilled workforce.”
“The decision by Alliance Steel to select the Gary as its new headquarters and production facility is testament to the economic revival occurring in the city," said Gary Mayor Karen Freeman-Wilson. "We welcome their commitment to repurpose an existing industrial structure, invest in our community and create quality, good-paying jobs for Gary residents and those throughout our county and region. Gary is on the shores of opportunity, and we are pleased that Alliance Steel recognizes the assets and benefits of operating here. We look forward to many years of partnership and prosperity for Alliance Steel.”
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