An Indiana company said it will build a $1.9 billion steel plant near Corpus Christi, the latest in series of steel mill openings and re-openings in Texas that have followed the Trump administration's stiff tariffs on foreign steel.

Buffalo LLC, a subsidiary of Steel Dynamics of Fort Wayne, Ind., said it would start construction in 2020 with plant scheduled to open in Sinton, about 30 miles west of Corpus Christi, in 2022. Steel Dynamics, one of the largest steel producers in the country, said the mill would have an annual production capacity of about 3 million tons of steel for energy, automotive, construction and appliance manufacturers and create about 600 jobs paying an average of about $76,000 a year.

Mark Millett, the president and chief executive officer of Steel Dynamics, said in a statement that the project will create "well-paying" positions and economic growth to the surrounding area.

The Buffalo plant may be the latest indicator that tariffs on steel imports imposed by President Donald Trump are giving a lending hand to the U.S. steel industry. In the year after the tariffs were implemented, Steel Dynamics saw its profits up 55 percent in 2018 to nearly $1.3 billion.

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A handful of steel mills have opened or reopen in Texas over the last year. In Houston, a private investment group plans in 2020 to re-open Bellville Tube Co., a steel mill 50 miles west of Houston that was shuttered in 2014 due to the global trade environment, and in Baytown, JSW Steel plans to upgrade an existing steel mill in a $500 million expansion.

The Corpus Christi Regional Economic Development Corporation had been courting steel companies since 2016 as part of its economic diversification goals. The company was granted a Texas Enterprise Fund of $5.9 million to locate the plant in Texas.

"Texas remains the premier economic destination in America because of hardworking Texans and job creators like Buffalo, LLC," said Governor Abbott in a statement. "This (is) a testament to the strong economic climate we have created in the Lone Star State."



While more domestic steel mills have opened, some materials that manufacturers need still remain unavailable by domestic suppliers in the right quantity or specifications, meaning many companies have continued to import foreign steel. In Texas, where energy and manufacturing rule, companies have tried to avoid the costs by requesting waivers from the tariffs.

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