JACKSON, Miss. (AP) — Mississippi lawmakers met in special session Wednesday and worked quickly to approve nearly $247 million in state incentives for an aluminum plant that could bring 1,000 jobs to the northern part of the state by 2029.
Many legislators voted on the incentives without knowing the name of the company. Republican Gov. Tate Reeves said a nondisclosure agreement prohibited him from publicly naming the company, and some House and Senate leaders said they intentionally did not find out the name because they did not want to let the information slip out before the deal is complete.
During a debate Wednesday, House Ways and and Means Committee Chairman Trey Lamar said the company is “an existing employer there in the area.”
Only the governor can call a special session, and Democratic legislators questioned why Reeves has not called sessions to address other issues, including funding for Jackson’s troubled water system or for struggling rural hospitals.
“Many Mississippians are suffering and dying. But none of these things, despite being matters of literal life and death, compelled the governor to call a special session,” Rep. Robert Johnson of Natchez said Wednesday during a Democratic Caucus news conference. “So, what compelled him to bring us back again? A victory lap being portrayed publicly as an emergency? But this feels a lot more like a campaign event, a political pep rally, than public service.”
Mississippi governors often have quick timelines to push incentives packages through the Legislature for large economic development projects, and it’s not unusual for them to try to keep company names secret until deals are complete.
The Mississippi secretary of state’s website shows a company called Aluminum Dynamics LLC registered in the state Oct. 26. One of the company’s officers is Richard Poinsatte, who has been vice president and treasurer for Steel Dynamics Inc., according to his LinkedIn page. The registration with the secretary of state’s office shows Aluminum Dynamics LLC has the same street address in Fort Wayne, Indiana, as Steel Dynamics Inc., which is also known as SDI.
Steel Dynamics Inc. already owns a steel mill near Columbus, Mississippi. The company announced in a news release in July that it plans to develop an aluminum mill in the Southeastern United States, “based largely on increasing demand from the automotive and sustainable beverage can industries.”
The Associated Press left a phone message Wednesday for Steel Dynamics spokesperson Tricia Meyers with questions about whether the company plans an aluminum plant in Mississippi. She did not immediately respond.
The AP could not find a website for a Mississippi-based company called Aluminum Dynamics, and the registration with the secretary of state did not include a phone number for the company.
Reeves announced Monday that he was calling the special session to begin two days later. He said in a news release that the project includes “a flat-rolled aluminum production facility, biocarbon production facilities and certain other industrial facilities. The facilities would be in the Golden Triangle area, which encompasses Columbus, Starkville and West Point and is near the Alabama border.
Republicans hold wide majorities in the House and Senate. On Wednesday, bills were passing with broad bipartisan support, with a few votes in opposition.
Reeves said the average salary at the aluminum plant would be $93,000 — significantly higher than than the average pay for jobs in one of the poorest states in the U.S.
The proposed state incentive package includes $155 million in direct contributions, about $25 million for roads in and around the project site, money to help purchase land and income tax rebates, Reeves said Tuesday.
The governor said the company would spend $2.5 billion, which would be the largest up-front investment to date for a company seeking state incentives to locate in Mississippi.
The previous record was in 2016, when Continental Tire announced a $1.45 billion investment to build a manufacturing plant in central Mississippi. The German company promised 2,500 jobs with an average pay of about $40,000 a year.
During a 2016 special session, legislators approved $263 million in borrowing for Continental, including $20 million to be repaid by Hinds County. With other tax breaks and aid, The Associated Press estimated the value of all incentives to Continental would exceed $600 million. The Continental plant opened in 2019.
Reeves said conversations about the new project began less than four months ago.
He said the state will have “aggressive” provisions to recover its investment if the company does not fulfill promises.