A Spanish steel processing company plans to locate a production plant in Union County– an initial $35 million investment that is expected to create 40 jobs. Gonvarri Steel Services also says it plans to invest another $15 million and create 25 more jobs during the next 10 years.
Gonvarri, a subsidiary of the Spanish corporation Gestamp, plans to build a facility for steel processing so it can supply an existing Gestamp plant in the area. Gestamp is a supplier for BMW’s Spartanburg production facility.
Union County officials say they are excited about the new facility, even though it is not an exceptionally large jobs announcement.
“40 jobs in any community is important and has impact,” said the Union County Development Board’s executive director Andrena Powell-Baker. She added the jobs would be considered “skilled labor” positions.
Powell-Baker says the new facility will be known as Gonvauto, a combination of “Gonvarri” and “automobile.” The Union County site will be the company’s first in the United States when it opens in July 2013.
“This new facility consolidates the internationalization process of the company… reinforcing our company as a multinational leader in steel service centers, particularly in the automotive business,” Josu Calvo, CEO of Gonvarri Steel Services, said in a statement.
Gonvarri says it will have 24 steel service centers in 13 countries once they are finished with the new Union location. The company’s website lists locations in Russia, Mexico, Germany, India, and Argentina, among other countries.
Powell-Baker said the company will pay a fee-in-lieu as its property taxes under an agreement reached with Union County and the South Carolina Department of Commerce.
Matt Long contributed to this report.