BY THE NUMBERS
$36 million: Total investment
120,000: Square footage of the new facility
75: Number of jobs to be transferred from current facility to new facility
15: Number of jobs to be added by 2018
15: Number of acres between Union Road and Interstate 75 where the new facility will be built
Source: AK Steel
Middletown’s largest employer, AK Steel, announced Monday that it will build a new $36 million research and innovation center in the city.
The new 120,000-square-foot center will replace the company’s existing research facility that is also located in Middletown. The new center will be constructed on a 15-acre site located in the Cincinnati-Dayton growth corridor along Interstate 75, according to the company.
City officials said the new facility will be built west of Union Road and I-75 on open ground behind the Inn at Renaissance Village and just north of the Atrium Medical Center campus. The new facility will replace the current facility located at 705 Curtis St., close to where the former headquarters once stood.
“Construction of this new Research and Innovation Center underscores AK Steel’s strong commitment to the future of steel-making in America and to our company’s continued industry leadership as a technological innovator in the steel business,” said James L. Wainscott, AK Steel’s chairman, president and CEO, in a news release. “The new center will be customer-focused, providing advanced technical support to our valued customers, as well as developing new and improved steel products for a number of our markets.”
Seventy-five existing researchers, scientists and engineers will move to the new center and 15 jobs will be added by 2018, said AK Steel spokesman Barry Racey. The facility will also house pilot lines that simulate the company’s steel manufacturing operations, ranging from melting and casting, to hot- and cold-rolling, to final finishing. The pilot lines are used for research, enhancing existing products, problem-solving in production, and experimentation for new and improved products, according to the company.
West Chester Twp.-based AK Steel is a world leader in the production of flat-rolled carbon, stainless and electrical steel products. AK Steel is Butler County’s third-largest employer with a total of 2,400 full-time employees at its steel plant Middletown Works and corporate headquarters in West Chester Twp.
Groundbreaking for the new center is planned for late spring or early summer. The project is subject to final state and local government approvals.
U.S. Senator Sherrod Brown, D-OH, applauded the project.
“The steel manufacturing industry is critical to Ohio’s economy,” Brown said in a written statement. “AK Steel’s investment in research and innovation will help ensure that Middletown continues to be a hub for advanced steel manufacturing.”
The Research and Innovation Center will be a signature corporate presence within Middletown’s Renaissance District. Anchoring the district’s research and technology campus, the center will be built on a highly visible site, with frontage along I-75, one of the most traveled roads in the nation’s interstate system.
“AK Steel is an integral part of Middletown’s heritage and economy and is a valued source of intellectual capital,” said Middletown Mayor Larry Mulligan Jr. “(Monday’s) announcement is the culmination of several years of effort. We are excited about the selection, and we look forward to our continued partnership with AK Steel. We appreciate the support from the county and state on this important project.”
Several other site options, including some in other states, had been under consideration by AK Steel for this new project. Middletown, together with Warren County, JobsOhio and several private entities worked together to attract the project. Ultimately, it came down to Middletown.
Mulligan believes the announcement will generate “a lot of excitement.” He said AK Steel has nearly a century old relationship with Middletown, and the fact the company selected Middletown is “really a big testament to the strength we have here in Middletown and a great visibility for them.”
Mulligan expects the research park to attract state and national attention and “let people know Middletown has some great opportunities for growth and expansion.”
Denise Hamet, the city’s economic development coordinator, said the new state-of-the-art Research and Innovation Center locating in Middletown is a tremendous boon to southwest Ohio.
“The selection by the company to invest in Middletown signifies confidence in the community and the region. It creates a far-reaching economic impact as a result of retaining and creating high-tech, professional positions. The location here will stimulate additional high-tech growth in the Renaissance District; it also presents a tremendous opportunity for AK Steel and the city of Middletown to build on their history of community partnership and support, collaboration and cooperative programs.”
While the 75 jobs are being transferred from the Curtis Street site, Hamet said there may be some tax incentives negotiated between the company and the city and state.
City Councilwoman Anita Scott Jones said every city has suffered through a downturn, and when they start to experience a rebirth it takes what she called “good” news.
“This is great news,” she said.
Councilwoman Dora Bronston called the new center “hope for the future.”
“It shows people that our future is bright and we are not a dying city,” she said. “There is a light at the end of the tunnel.”
The move sends a much different signal to the city and its residents from the steelmaker than when it moved its corporate headquarters and 300 high-paying jobs to West Chester Twp. in 2007 following a yearlong lockout of union workers at the Middletown Works. But since then, AK has strengthened its commitment to the city that birthed it through some projects that will factor into Middletown’s economy for years to come, such as the $360 million SunCoke coke plant that serves Middletown Works.
Jones is confident the city and surrounding areas have the workforce capable of working at the site and that research center will provide “a boost to the economy and the morale” of the community. In addition, she called the move to open the facility in the city “a wonderful decision,” and said the east end will continue to grow and increase the city’s visibility.”
“I believe this shows that AK Steel still has ‘a special value’ with Middletown,” Scott Jones said. “This is a game changer.” she said.
City Manager Doug Adkins said Butler County received “very good news” on Monday and for the county to be successful, Hamilton and Middletown need to prosper.
“This is positive stuff,” he said.
The fact that AK Steel feels confident enough to make a $36 million investment is a good sign. The Fortune 500 manufacturer hasn’t netted an annual profit in five years.
“Our talented researchers, scientists and engineers are already working to develop such innovative products as next-generation Advanced High Strength Steels to help automotive customers design lighter, more fuel-efficient vehicles that maintain superior strength and safety performance, high efficiency electrical steels that will help the nation’s electricity grid become more energy-efficient, and new stainless steels that offer superior corrosion resistance for a wide variety of applications,” Wainscott said. “The new research and innovation center will enhance our capabilities to bring these products to the marketplace.”
“We greatly appreciate the support and cooperation of the state of Ohio, city of Middletown, Warren County Port Authority, JobsOhio, and REDI (Regional Economic Development Initiative) Cincinnati, in helping to make this project a reality,” Wainscott said in a news release. “While we considered strong proposals from a number of locations, including several in other states, we are very pleased that Middletown – where our company was founded more than 100 years ago – emerged as the clear best option for this investment in AK Steel’s future.”
“I’m not surprised AK Steel wanted to expand into Warren County because there are advantages of doing business here,” said David Young, Warren County Commission president.
Young cited advantages such as accessibility to a large portion of the U.S population located within 600 miles of the county, a highly trained workforce and training programs for employees.
Martin Russell, Warren County economic development director and the executive director of the Warren County Port Authority, called the decision a win for Warren County and all of southwest Ohio as there was competition from other regions for the research and innovation center.
Russell said there are discussions about some possible economic incentives for AK Steel but details need to be ironed out and that any public announcements will be made at a later date.
“Warren County is pleased for the region,” he said.“It’s a big day for Warren County as it continues to highlight that it’s a business-friendly community,” he said. “I would say that AK Steel values its legacy relationship with Middletown and that Middletown’s future is bright and that AK wants to be a part of that assured path the city is on, and they’re buying into it.”
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