The relationship between MS Industries II, LLC, and the Russellville Industrial Development Board grew quickly.
As MS Industries CEO Steven D. Smith searched for a location for his company’s silica processing and transport facility, he didn’t have to look far to find the one community that ‘embraced’ his company and its vision.
“Russellville was the only one who embraced us. We knew it would be the right fit,” Smith said.
The result? A $15 million investment by MS Industries in Russellville, including a six-story processing plant on Walnut Gate Road and the purchase of the former Bank Independent building at the intersection of Jackson and Lawrence downtown that will serve as the company’s corporate headquarters.
Not bad for a relationship that didn’t exist prior to this year.
With at least 50 jobs paying $20/hour or more set to be filled early next year and plans to construct a rail spur and transport more than one million tons of silica products annually from the Russellville facility, the story of this quick-developing partnership has its roots in the vision of Russellville IDB chairman Larry Archer.
For several years, Vulcan officials expressed interest in land owned by the Russellville IDB adjacent to the company’s asphalt plant. The goal of Vulcan officials was to purchase the land and create a straight route over to the plant, rather than the current route that requires trucks to make a 90-degree turn by Southern Energy Homes. Vulcan officials wanted to purchase land owned by IDB that would allow the desired access.
Archer, on the other hand, had his eye on Vulcan’s former facility on Walnut Gate Road. With rail access and the ability to accommodate heavy utility usage, Archer knew this property to be a hidden jewel.
“Each time they came to us, we told them we wanted to trade for their Walnut Gate Road property. They eventually came around to that,” Archer said. “We knew it was a prime site that could easily be brought into the city limits with no opposition from the adjoining land owners, and it was a prime rail location.”
Once the land trade was complete, the Russellville IDB found itself the owner of the 60-acre former Vulcan tract.
“We put the property on the Alabama Development site in Montgomery,” Archer said. “It kept Russellville on the map. If someone needed rail and would be a heavy utility user, that quickly comes down to a very short list. That’s why we wanted this property so bad.”
When the board heard MS Industries was interested in a processing facility but needed rail access and unlimited utility availability, it almost seemed too good to be true. Almost, for Archer, anyway.
“As the chairman of the board, I don’t vote. But I wasn’t sure initially the number of jobs was enough for such a prime site,” Archer said. “But they came along and were ready to go with a $10 million or more investment. They were going to build a rail spur and cover most of that cost. They were the kind of customer Norfolk-Southern was anticipating.
“They would be making permanent improvements to our 60-acre site. This is a long-term industrial commitment with no environmental issues. I really believe they’ll be there long-term, because there’s a continued market for the sand they’re processing.”
MS Industries’ Russellville facility will see steady traffic of dump trucks transporting silica processed at the company’s Lawrence County mine site. That silica will be further processed in Russellville and prepared for shipping by rail.
“The city of Russellville was the only area that embraced us and what we’re currently doing,” Smith said. “What we’re going to do in Russellville is non-petroleum related and has nothing to do with petroleum or oil sands.
“We are setting up our corporate headquarters downtown, where we will hire people. This will be a windfall to the city of Russellville because we’re going to hire a lot of local people at our preparation and shipping facility.”
MS Industries II chief operations officer John Christmas said he was impressed by the vision shown by the Russellville IDB, former Franklin County Development Authority executive director Mitch Mays and Russellville mayor David Grissom.
“They took a non-performing asset in their industrial park and, with the assistance of the Russellville Industrial Development Board, made it into a productive performing asset,” Christmas said.
With construction well underway, Smith expects production to begin at the Russellville facility by early 2017. The company received what MS Industries general counsel Chuck Kelley described as the “standard” tax abatement, sales and use exemption for three years. MS must have at least 50 new jobs, at a minimum hourly rate of $20/hour, and a $10 million investment complete within three years. If those conditions are met, the company will be able to purchase the property from the IDB for $10, Archer said.
“We obviously believe this to be an enormous opportunity. That’s why we’re putting our money where our mouth is and spending millions of dollars in this community,” Christmas said. “With the right people at the helm, there’s no reason we won’t see a renaissance in Russellville. Russellville has some great infrastructure. The Russellville Development Board does a phenomenal job in this community. It’s one of your greatest assets.”
Kelley credits the cooperative efforts of all parties involved, along with some fortuitous timing, for the project coming together so quickly.
“A lot had to do with timing,” Kelley said. “It was the perfect time when we had a need for what the Russellville IDB had planned for that site. And everyone worked diligently to bring this together.”
Archer agrees.
“This was such a prime site, and they were ready to go,” he said. “They have some contracts they need to fill. It all came about in a matter of months. Russellville and Franklin County are well situated to attract industry. We’ve got some things here very attractive to industries, and our workforce training through Northwest-Shoals Community College is one of our greatest assets.”
