(Seguin) — The city of Seguin continues to be a magnet for attracting new jobs to community. The Seguin City Council on Tuesday approved a deal that will allow a Japanese company to bring a new manufacturing facility to Seguin.
Maruichi Stainless Tube Texas Corporation is bringing more than 100 new jobs to Seguin and investing approximately $75 million in a large-scale plant in Seguin. The plant will be built on 33 acres on 8th Street, south of the United Alloy facility.
Seguin Economic Development Director Josh Schneuker says the city and its Seguin Economic Development Corporation (SEDC) have been working together with the company to get this deal done.
“We are happy to announce that we are moving forward on an economic development project with Maruichi Stainless Steel (Tube) Texas Corporation. The first part of this deal involves the sale of the SEDC property 33 acres at $3 a square foot. The final purchase price will be determined when we get the survey completed. We estimate at about $4.3 million in revenue off that sale there as well,” said Schneuker.
Schneuker says this is another big job creation announcement for the city of Seguin. He says the company will be a great addition to the city’s already strong industrial community.
“Maruichi is a Japanese company. They manufacture stainless steel tubes for customers in the semi-conductor industry. They are proposing to build 125,000 square foot facility here in Seguin at a total of a minimum capital investment of $55 million. They are also going to be creating 106 new jobs at a total annualized payroll of $4.77 million. All of these items, performance obligations, are formalized within the performance agreement and this is a performance-based cash grant to the company so in order to realize the incentive, they must meet the performance benchmarks outlined within the agreement,” said Schneuker.
Mayor Donna Dodgen says this is additional great news for the community.
“We are delighted that Maruichi has decided to build their new manufacturing facility in Seguin, Texas. This project will help create excellent employment opportunities for our residents and help grow and diversify our economic base. We are proud that they have
chosen to do business in the City of Seguin,” said Dodgen.
The council met in executive session on Tuesday to get a briefing on the project. When it returned to open session, council members unanimously approved the deal.
Schneuker says Maruichi expects to break ground on the project in the first quarter of 2023, with operations commencing by the first quarter of 2024. The project will represent a total capital investment of $75 million and will result in the creation of at least 106 new jobs over a two year ramp up period.
Since 1959, the Maruichi Stainless Tube Co., LTD has produced high-quality seamless, stainless-steel pipes and tubes fabricated through the hot extrusion process and cold drawing process. Products produced by the Company are used in power plants, the chemical industry, the semiconductor industry, hydrogen gas stations, the automotive industry and for structural machinery.
Taskashi Onishi, Maruichi Stainless Tube Co. president, says that Maruichi is very excited to expand its manufacturing operations in Seguin.
“Strategic location, access to a skilled workforce, and the partnership and genuine support we’ve received from the SEDC Board of Directors, the Seguin City Council, and city staff helped solidify Maruichi’s decision to locate this project in Seguin. We look forward to contributing to the betterment of the City’s economy and becoming the newest member of the business community,” said Onishi.
The company’s Seguin facility will produce seamless stainless steel precision tube to support customers in the semiconductor industry. Schneuker says the demand for stainless steel precision Bright Annealed (BA) tubes used for semiconductor manufacturing is significantly increasing, due to global increase in semiconductor demand.
The Seguin facility will help Maruichi further meet demand in the United States from multiple construction projects for large-scale semiconductor manufacturing plants.