Hanna Steel Corporation is investing $20 million and expected to create 14 new jobs to expand activities for its steel production lines in Tuscaloosa, the Tuscaloosa County Economic Development Authority announced.
The new investment will add equipment to expand certain slitter services to production lines in Tuscaloosa, which will increase the company’s business footprint in Tuscaloosa County. Hanna Steel will add 9,000 square feet to its existing facility in the Tuscaloosa County Airport Industrial Park to support the expansion of its operations.
Hanna Steel began operations in Tuscaloosa in 1991. Since then, the facility has more than quadrupled in size to over 600,000 square feet. The Tuscaloosa facility employs more than 220 people and serves as the Alabama home for the company’s Southeast tubing operations, where mechanical tubing and Hollow Structural Sections (HSS) tubing are produced.
“Hanna Steel has been a member of the Tuscaloosa business community for more than 30 years, supplying numerous industry sectors with its products and providing quality jobs for the citizens of Tuscaloosa County,” said Norman Crow, chairman for Tuscaloosa County Economic Development Authority. “Our organization and community have supported Hanna’s success since its beginning in 1991, and we look forward to continuing that partnership for another 30 years.”
Hanna Steel has corporate headquarters in Hoover, Alabama, and eight tube mills in Alabama and Illinois. The company provides ASTM standard structural and mechanical tubing both domestically and internationally. Hanna produces tubing ranging from ½ inch square to 10 inches square in a number of shapes and sizes, with wall thicknesses through .500 (½ inch).
The new equipment allows the company to efficiently expand production. This improves productivity by increasing efficiencies in Hanna’s manufacturing process and decreasing equipment downtime. In addition to the 14 new positions created with this investment, a number of existing employees will be promoted to support new production activities. Construction on the expansion is slated to begin in the first half of 2023.
“It’s exciting to have the opportunity to support amazing partners like Hanna Steel as they grow and thrive in our community,” Tuscaloosa Mayor Walt Maddox said. “For more than three decades, Hanna Steel has provided opportunities for hundreds of our citizens, and currently employees more than 220 individuals. We look forward to celebrating their continued success for many years to come.”
The Tuscaloosa County Industrial Development Authority, which does business as the Tuscaloosa County Economic Development Authority, approved a tax abatement package as part of an investment by Hanna Steel. The Authority’s board of directors approved the package Thursday afternoon during its January meeting.
The company will receive an abatement of the non‐educational sales and use taxes for purchases of equipment and building materials during the construction phase of the project and an abatement of the non‐educational ad valorem taxes on certain real and personal property for up to 10 years. The $20 million expansion project is expected to be fully operational during the second quarter of 2025. Hiring of the 14 hourly jobs will be completed during the first year of operations.
“This is great news for the future of Tuscaloosa County. For decades Hanna Steel has been a valued community partner and their plansfor expansion willstrengthen their position to serve customers around the world,” said Probate Judge Rob Robertson. “Companies with corporate values like Hanna are the backbone of American industry.”
Authority officials say the company will be eligible for tax abatements in an estimated amount of $1,543,663. During the first 10 years of operations, the project is estimated to contribute almost $1 million in tax revenue in education taxes, from initial purchases alone. TCEDA estimates the project will contribute almost $4 million during its first 20 years in certain taxes generated from the company and direct employee spending, identified through the Authority’s standard evaluation process.
“Hanna Steel is truly a ‘made in Alabama’ company that we are proud to have in Tuscaloosa County,” stated TCEDA Executive Director Justice Smyth. “Their products are used in all types of construction, including commercial and residential developments and professional athletic facilities. While Hanna’s growth in Tuscaloosa positively impacts our community, it also strengthens the Alabama company’s presence in the steel tubing industry, which is a win‐win for us all.”