Plans are underway for the development of a $75 million Maruichi Stainless Tube plant in Seguin, Texas. Maruichi Stainless Steel Texas Corp has selected a 33-acre site in Seguin to produce stainless steel precision tubes for semiconductor companies. Similarly, its Japanese-owned parent company runs this type of plant in Oregon and other such facilities in California and Chicago .
Maruichi’s President, Takashi Onishi said the company was excited about producing stainless steel precision Bright Annealed(BA) tubes in the U.S. Especially since there is an increasing demand for the product in the semiconductor industry and automotive industry in particular. The fabrication method for the BA tubes will involve using the hot extrusion process and cold drawing process.
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According to Seguin officials, the Maruichi Stainless Tube plant will serve in diversifying and strengthening the region’s growing manufacturing industry. More importantly, they also expect it to help address the global shortage of semiconductors, which is currently limiting industrial production. Construction on the 125,000-square-foot facility is scheduled to commence by early 2023, with its delivery date set for Q1 2024.
The Seguin Economic Development Corp(SEDC) was quick in its response to Maruichi’s proposal and offered incentives to lure the company. Consequently, Maruichi will receive a $1 million grant on the land purchase, calculated based on the anticipated sale price. The incentives will include other performance-based cash grants to support the Maruichi Stainless Tube project.
SEDC’s Board of Directors and Seguin City Council recently approved a Performance Agreement, stating the criteria for realizing SEDC’s incentives. Therefore, Maruichi is expected to meet certain capital investments, job creation, and payroll performance benchmarks over the period of the agreement. This will include employing up to 106 workers within two years.
Onishi said the company chose to set up the Maruichi Stainless Tube plant in Seguin, due to the strategic location and available skilled workforce. Moreover, the project also received support from the SEDC Board of Directors, Seguin City Council, and City Staff. Therefore, he said the company was looking forward to contributing to the development of the city’s economy.
The Mayor of Seguin, Donna Dodgen, praised the company for choosing Seguin to build their Maruichi Stainless Tube plant. She further stated that new development would help create quality jobs for the residents and grow the city’s economic base.
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