David Stickler: Clean Tech did its best

The Winston-Salem Journal published a guest column today from David Stickler, a member of Clean Tech's Board of Directors, about why the company was unable to reach an agreement with the Stanly County Commissioners.

"If there had been true interest by Stanly County in finding a path forward, I feel certain that Clean Tech and Alcoa could have mitigated all of the concerns that were raised — even those raised at the 11th hour," Stickler wrote

"But there was one fundamental problem: Every time we mitigated or structured around one concern, the county would simply present another concern that then needed to be addressed."

The entire article is reprinted below:

Clean Tech did its best

By DAVID STICKLER

Now that Clean Tech has abandoned its plans to build a $300 million manufacturing plant and create 450 new jobs in Stanly County, I see that there is already a lot of finger-pointing in the press about why we were unable to reach an agreement with the Stanly County commissioners. Having been directly involved in the process of trying to structure a transaction that met the county's concerns, let me share my perspective.

If there had been true interest by Stanly County in finding a path forward, I feel certain that Clean Tech and Alcoa could have mitigated all of the concerns that were raised — even those raised at the 11th hour.

But there was one fundamental problem: Every time we mitigated or structured around one concern, the county would simply present another concern that then needed to be addressed.

First it was environmental. Then it was jobs. Then it was the number of jobs. Then it was the length of the jobs commitment.

In a final effort to reach an agreement Thursday evening, Clean Tech teamed with Alcoa and committed to creating 750 jobs with a payroll and benefits commitment that started at $30 million a year and increased over time to more than $43 million a year. The commitment would have lasted 50 years.

But even after these commitments were put on the table and the previously identified concerns addressed, the county began raising new obstacles, some of which involved the most unlikely of business scenarios. So I asked the county directly: If we can resolve these latest concerns, will you create a path forward? Unfortunately, the response received led Clean Tech to conclude that there would always be one more challenge to overcome and that the process would never end.

At that point, Clean Tech finally had to say enough is enough. We had tried our best.

Issues surrounding the relicensing of Alcoa's dams were obviously a major sticking point for the county. It is important for everyone to know that Clean Tech never tried to infringe on Stanly County's or North Carolina's legal standing with respect to having a voice at the table regarding permits, 401 certificates or government authorizations. All Clean Tech was looking for was an assurance that the county and the state would allow the regulatory process to move forward in a timely manner so that we could begin the construction and hiring process.

As we prepare to move forward with our plans to locate the Clean Tech plant in another state, I feel terrible for the citizens of Badin and Stanly County who would have benefited from the investment that Clean Tech was trying to make. The support of the citizens for the Clean Tech project was overwhelming. I am sorry that things did not work out differently.

Clean Tech issues press release

Clean Tech distributed the following press release this morning.

Clean Tech abandons plans to develop its $300-million 

manufacturing plant in North Carolina

Clean Tech Silicon and Bar LLC announced today that it was abandoning its plans to invest $300 million and create 450 jobs in Stanly County, NC, in the town of Badin. A December 15 deadline to reach an agreement passed without an agreement being reached with either the Stanly County Commissioners or North Carolina.  

The Stanly County plant was to be located on an industrial site owned by Alcoa and would have created 450 new jobs. Clean Tech would have employed 250 people with an average wage of $55,000 per year and created an additional 200 support jobs with an average wage of $40,000 per year.

Key elements of the proposed Clean Tech agreement included:

• A 30-year commitment to Stanly County in terms of investment, job creation and related payroll. 

• A commitment to forego certain tax breaks available to all scrap metal recycling companies operating in North Carolina and pay full property taxes. 

• A pledge to provide $500,000 a year to educational institutions in Stanly County.

In a last effort to try and reach agreement with Stanly County and North Carolina, Clean Tech teamed with Alcoa and offered to commit to creating a total of 750 jobs with a payroll and benefits commitment that started at $30 million and increased over time to more than $43 million annually.  The jobs and payroll commitment would have lasted for fifty years.

In announcing that it was abandoning its plans to invest in Stanly County, Clean Tech noted that unlike almost every other economic development project recently announced in North Carolina, Clean Tech was not seeking government subsidies, incentives or tax holidays and was instead looking to benefit from a substantial package of incentives Alcoa was providing to support Clean Tech’s investment in the town of Badin at the site of its former aluminum smelter. 

The Alcoa incentive package included a direct investment in Clean Tech, a long-term purchase commitment, and an agreement to significantly lower Clean Tech’s cost of electrical power. 

John Correnti, Clean Tech’s chairman, stated, “I am disappointed that things did not work out differently and that the legal maneuvering related to North Carolina’s and Stanly County’s attempts to take control of Alcoa’s hydroelectric dams finally forced us to move on. We tried our best but in this case other agendas prevailed.”  

Correnti went on to state that “Clean Tech greatly appreciates the enthusiastic support for Clean Tech shown by the good folks of Stanly County and the town of Badin.  They deserved a better outcome.”

Clean Tech expects to announce its new location shortly after the year-end holidays. 

# # #

Commissioners walk away from deal to bring $300M investment, 450 jobs to Stanly County

Alcoa remains committed to attracting new jobs to Badin, obtaining new hydro license for Yadkin Project

  

Stanly County Commissioners failed to agree on a plan to bring a $300 million investment and 450 new jobs to the County, effectively walking away from a one of the largest economic development projects in the county’s history. 

Clean Tech Silicon & Bar LLC, led by former Nucor CEO John Correnti, had set a December 15 deadline for the company to reach an agreement with Stanly County that would have allowed the silicon and rebar manufacturing plant to move forward. After several meetings this week, the Commissioners failed to reach agreement with Alcoa and Clean Tech. 

“Opportunities like this don’t come along very often, and it’s incredibly disappointing that these 450 new jobs will not be coming to North Carolina,” said Kevin Anton, Alcoa’s Chief Sustainability Officer and the executive responsible for the Company’s recruitment of Clean Tech. 

Despite the obstacles that forced Clean Tech to abandon its plans in Stanly County, Anton says Alcoa will continue working to bring other businesses to town. 

“Alcoa remains committed to attracting new jobs to the Badin Business Park. We will follow through on our plans to improve water quality and protect the environment, and we will continue to vigorously pursue a new license for the Yadkin Hydroelectric Project,” Anton said. “Our goals remain the same, no matter how long it takes to reach them.”  

Recruiting Clean Tech

Alcoa began discussions with Clean Tech this summer, and the prospect of bringing hundreds of new jobs to Stanly County excited residents. Local elected officials and community leaders organized a “rally for jobs” in October that drew a crowd of 750 people. 

“The support of Mayor Harrison, Mayor Whitley, and other community leaders was overwhelming,” Anton said. “We appreciate the support of so many local residents and will continue working on their behalf to bring new jobs to Badin.” 

Alcoa offered a substantial package to Clean Tech as part of its recruitment efforts, including a commitment to invest in the company and purchase silicon for aluminum alloying. In addition, Alcoa offered economic incentives that would allow Clean Tech to obtain affordable power.    

Alcoa could only afford to offer those incentives if it obtains a new hydro license for the Yadkin Project, which it has owned and operated for nearly 100 years. Stanly County officials have delayed the relicensing with various legal challenges.  

Alcoa proposed a settlement to Stanly County in exchange for dropping its legal challenges and paving the way for Clean Tech to invest in Stanly County. The Company committed to attract approximately 750 new jobs within four years and attract $400 million in investments in the next five years — measures that would have spurred local spending and generated millions in new tax revenue. In addition, Alcoa pledged to contribute $6 million to Stanly County for education and other needs over the next two years.  

To address concerns that the jobs and investment would not materialize, Alcoa provided financial assurances that could generate more than $50 million for economic development in the region if Alcoa failed to meet its commitments.  

“We made our best effort to reach an agreement that would have an immediate, positive impact on the local economy and put these issues to rest,” Anton said. “Instead, it looks this process will continue for years to come.”  

Redeveloping the Badin Site

Alcoa has been working diligently to attract new jobs to Stanly County. Beginning in February, the company accelerated its plans to redevelop the former Badin aluminum smelter. It invested $10 million to turn the plant into the Badin Business Park and aggressively reached out to customers and business partners as part of its efforts to bring new jobs to North Carolina. 

Earlier this year, Alcoa successfully recruited Electronic Recyclers International, the nation’s largest electronic recycling company, to Badin. ERI began hiring this summer and will move into a larger, newly renovated facility early next year that will employ 200 people. Alcoa invested $5 million in building renovations to accommodate ERI.     

“The Badin Business Park is a great manufacturing site that is ready to come to life,” Anton said. “Clean Tech was an ideal fit in many respects, but we remain committed to redeveloping the Badin site and will continue to recruit companies to locate at the Badin Business Park.”  

Salisbury Post editorial supports Alcoa agreement

The Salisbury Post published an editorial on Sunday supporting Alcoa's efforts to attract new jobs to the Yadkin region and end the debate over the relicensing of the Yadkin hydro project:

"Like many of the diverse stakeholders involved in this process, we believe working with Alcoa is a better option than continuing this standoff in hopes of recapturing the license and taking over the Yadkin dams.

"No, there aren’t any iron-clad guarantees. But a hard-fought settlement with Alcoa offers a clearer outcome than the turbulent, muddy waters that lie in the other direction."

Alcoa has committed to attracting new jobs and investment to Stanly County, including a $300 million plant from Clean Tech Silicon & Bar that will create 450 new jobs.  In addition, Alcoa and Clean Tech have made commitments that could generate an additional $1 million a year for Stanly County schools.

With Clean Tech's December 15 deadline quickly approaching, the Stanly County Commissioners must decide whether to embrace the new jobs that Clean Tech will bring or continue legal challenges that could last another decade or more. The Commissioners meet tonight at 7:00 pm in Albemarle.

Click here to read the entire Salisbury Post editorial.