MONTGOMERY, Ala. (January, 20 2026)— Alabama recorded its strongest economic development performance on record in 2025, with $14.6 billion in new and expanding industry investment across 234 projects, according to the state’s newly released 2025 New & Expanding Industry Announcements Report.
Announced by Kay Ivey, the results reflect the highest annual capital investment total in Alabama history and include commitments for 9,388 new jobs statewide, underscoring broad-based growth across urban and rural communities.
“Alabama’s economy is riding a wave of historic momentum, with signs of success in every corner of our state,” Governor Ivey said. “Innovative developments, high-quality jobs, and transformative investments are ushering in an extraordinary era of prosperity as new companies locate here and existing ones expand.”
Long-Term Strategy Driving Results
Governor Ivey said the 2025 results reflect a sustained economic transformation that has taken place since she took office in 2017, guided by a disciplined focus on business recruitment, workforce development, and long-term competitiveness.
“Since then, we have seen investments totaling $69 billion and the creation of more than 100,000 jobs — and counting,” Ivey said. “Alabama consistently ranks among the top states in the nation for doing business.”
The annual report, issued by the Alabama Department of Commerce, highlights strong growth across a wide range of industry sectors, including biosciences, advanced manufacturing, automotive, aerospace, metals and materials, technology, and forestry and wood products.
Landmark Projects Anchor 2025 Performance
Several marquee projects drove Alabama’s record-setting year, including:
- Eli Lilly and Company — The pharmaceutical manufacturer announced plans to invest more than $6 billion in a new advanced manufacturing operation in Huntsville and Limestone County, creating 450 high-skilled jobs. The synthetic active pharmaceutical ingredient facility represents the largest initial capital investment in Alabama history.
- ArcelorMittal — The global steel producer committed $1.2 billion to build a specialty electrical steel facility in Mobile County, supporting electric vehicle motors and other advanced applications and creating more than 200 jobs.
- Owens Corning — The company announced a $325 million investment to establish a state-of-the-art shingle manufacturing plant in Prattville, adding 89 jobs in Autauga County.
Rural Alabama and FDI Show Strong Gains
Economic development momentum extended well beyond Alabama’s largest metros. The state’s targeted rural countiesrecorded a combined $2 billion in capital investment and 2,011 new job commitments in 2025.
Among the most significant rural investments was Georgia-Pacific, which announced plans to invest $800 million to modernize and expand its Alabama River Cellulose mill in Monroe County. Upon completion, the Perdue Hill facility will become the largest softwood pulp mill in the United States.
Foreign direct investment also played a key role, with Alabama securing $3.6 billion in FDI projects in 2025, supporting 2,274 new jobs across the state.
Catalyst Plan Positions Alabama for Continued Growth
Commerce Secretary Ellen McNair said the results validate the early success of Catalyst, the Alabama Department of Commerce’s new strategic economic growth plan.
In parallel, initiatives such as SEEDS and Growing Alabama are helping communities prepare industrial sites, improve infrastructure readiness, and strengthen workforce pipelines to remain competitive for future projects.
“We are confident that Catalyst will continue to drive growth in key industries,” McNair said. “Our economic development efforts are thriving, and we have all the ingredients needed to sustain this momentum and create opportunity across Alabama.”
Looking Ahead
Governor Ivey said Alabama’s economic development team is well-positioned to build on the record-setting performance in the year ahead.
“We are open for business, ready to embrace new challenges, and poised to welcome even more world-class companies, advanced technologies, and breakthrough products,” she said. “They should look no further than Sweet Home Alabama.”
