Zekelman Industries plans to invest over $6 million to expand steel tube production at its facility in Jefferson County, creating a combined 91 jobs.
Chicago-based Zekelman will invest nearly $2.3 million to upgrade the manufacturing capabilities and production capacity at its existing Atlas Tube facility located at 171 Cleage Drive in unincorporated Jefferson County, and in process create 33 jobs over a three-year period.
Zekelman will invest an additional $3.9 million to equip an existing warehouse to a new Wheatland Tube facility in Birmingham, where it will perform finishing processes on torque tubes produced by Atlas. This project will create 58 jobs over the same three-year period.
“Not only are these Zekelman operating companies creating jobs in Jefferson County, but they will also be working together to serve the solar industry and advance the ongoing national green energy transition,” Commerce Secretary McNair said.
“Zekelman is a first-class manufacturer, and we’re happy to see them expand in Alabama.”
Growth plans
Zekelman is North America’s largest independent manufacturer of steel pipe and hollow structural sections, and the top producer of electrical conduit and elbows, couplings, and nipples. Its eight companies serve construction and manufacturing customers with state-of-the-art structural steel, pipe, and modular building solutions.
The company’s roots can be traced back to 1877 and its 2,900+ teammates produce 2.8 million tons of steel products annually.
“We’re excited to continue our growth with the community of Birmingham and the surrounding areas,” Zekelman Industries Executive Vice President and COO Tom Muth said. “We continue to meet with dynamic people as we build this team, and our local partners are helping us transform a warehouse into a steel tube production and fabrication facility.
“Together, we have built a factory where teammates can expand and grow their careers while supporting their families.”
Once the growth projects are complete, the Zekelman companies will work in tandem to produce steel tubes used by the solar industry.
At the Atlas facility, workers will fabricate specialized steel tubing to be used in solar arrays. The product will then be transported to the Wheatland facility, where teammates will complete various processing and finishing steps, before delivering the finished torque tubes to customers.
The Birmingham Business Alliance, which worked with the Alabama Department of Commerce to support the projects, estimated they will have a combined economic impact of $20.8 million over 20 years.
The projects were also supported by the City of Birmingham, Jefferson County, and Alabama workforce development agency AIDT, which will provide services to Atlas and Wheatland.
Local impact
Officials in Jefferson County welcomed Zekelman’s growth plans.
“I’m excited to see this project moving forward,” said Jeff Traywick, economic development advisor for the Jefferson County Commission. “It’s a great mix of renewable energy equipment production, good job creation, and existing industry growth. The county looks forward to seeing this project come to fruition and are proud to have supported the project.”
Cornell Wesley, director of the City of Birmingham’s Department of Innovation and Economic Opportunity, said Zekelman’s ongoing investment in its operations in Birmingham is a clear indication of the favorable business environment that exists in the city.
“Zekelman’s production of steel and pipe and hollow products serves as the cornerstone of Birmingham’s historical and enduring status as a prominent player in the steel industry,” Wesley said. “This industry has the potential to regain its former strength and contribute significantly to the city’s economic growth.”
“The collaboration between Zekelman Industries, local an state government, and workforce development agencies showcases the strength and potential of the Greater Birmingham Region,” added Steve Ammons, president and CEO of BBA. “This investment not only boosts our economy but also aligns with our commitment to fostering sustainable industries. We look forward to the positive impact this project will have on our community and the continued growth of Zekelman Industries in Alabama.”
