State Economic Development Agency Announces Expansion of Magnum Steel Works

Coal Mining Equipment Company Expected to Create and Retain 150 Illinois Jobs Over Four Years

MT. VERNON–(ENEWSPF)–November 18, 2011. Illinois Department of Commerce and Economic Opportunity (DCEO) Assistant Director Dan Seals today joined local officials to announce that coal mining equipment manufacturer Magnum Steel Works, Inc. is investing more than $13 million over four years to expand its current Mt. Vernon facility, nearly quadrupling it in size. As part of its investment package, the company will strengthen southern Illinois’ economy by creating and retaining 52 Illinois jobs over two years via the company’s initial $4 million investment. Magnum Steel Works expects to invest an additional $9 million over the next four years, bringing the company’s total investment to $13 million. The total expansion project is expected to create and retain more than 150 Illinois jobs over four years. 

“With world-class transportation networks and the best workforce in the nation, Illinois has all the tools a company needs to grow and thrive,” said Governor Quinn. “We will continue to do everything we can to work with small businesses like Magnum Steel Works to continue the state’s economic recovery and put more people to work.”

“We utilize a variety of economic tools to help companies of all sizes expand their businesses and flourish in today’s economy,” said DCEO Director Warren Ribley. “By investing in Magnum Steel’s expansion, we are helping to improve the southern Illinois economy.”

Magnum Steel Works will increase the size of its facility from 33,000 square-feet to 128,000 square-feet. Through this expansion, the company will be better able to meet the market demands of the coal industry in Illinois, Indiana, and Kentucky. The company anticipates that sales will increase by 20 percent within two years.

“We are excited to continue to expand and grow our business in southern Illinois, where we’ve found a talented pool of workers and an ideal location to meet our market demands,” said Jim Czerwinski, President & CEO of Magnum Steel Works, Inc. “I’d like to thank the state and our local partners for helping us enter into the next phase of our business.”

DCEO will provide Magnum Steel Works with Economic Development for a Growing Economy tax credit, which are based on job creation, and job training grants. The state’s business investment package is valued at approximately $540,000 over 10 years and is contingent on the company meeting its investment and job numbers.

“The expansion of Magnum Steel Works is a great example of the investment and job creation potential of the coal industry in Southern Illinois,” said Mary Ellen Bechtel, Executive Director of the Jefferson County Development Corporation. “We certainly appreciate the support for the project from the State of Illinois and the City of Mount Vernon in keeping this expansion in Illinois and, especially, in our regional economy.” 

“This is great news for the city of Mt. Vernon and the surrounding area. The expansion of Magnum Steel Works will mean more jobs for the people of southern Illinois and a much needed boost to the local economy,” said State Senator John O. Jones (R-Mt. Vernon).

“We are very pleased that Magnum Steel Works has chosen to expand its facility right here in Illinois. Putting people back to work is the key to revitalizing our state’s economy,” said State Representative John Cavaletto (R-Salem). 

Since business began in 2005, Magnum Steel Works has grown from five employees to 40. The company specializes in fabrication, machining, mig welding, waterjet cutting and rebuild services of coal mining equipment and also works with Continental Tire on all equipment repair work. Magnum Steel Works Inc. continually looks for opportunities to strengthen their existing presence in the global market and strives to meet and set world-class standards in everything they do.

For more information on why Illinois is the right place for any business, visit www.ildceo.net.

Source: illinois.gov