The American Cast Iron Pipe Co. plant in Birmingham has received a $20 million investment from the National New Markets Fund LLC, an affiliate of Los Angeles-based SDS Capital Group. The funding will help finance the replacement of ACIPCO’s single cupola furnace with four electric induction furnaces at its Birmingham plant.
“The New Markets Tax Credits, made possible through NNMF, will help us further modernize our manufacturing operations,” said J. Michael O’Brien, president and CEO of American Cast Iron Pipe Co. “Public-private partnerships like this one support American manufacturing, allowing our companies to expand capacity to meet customers’ needs, support employment opportunities and create positive change in our communities.”
The furnace replacement is part of ACIPCO’s $285 million improvement program that will create 80 to 100 full-time jobs and retain an additional 1,775 positions. According to the company, the replacement of the furnace will result in a 25% increase in melting capacity and at least 50% reduction of on-site greenhouse gas emissions. The company expects the project to be complete in 2029.
“NNMF focuses its NMTC investments on manufacturing companies that — through their growth — uplift communities navigating severe economic hurdles,” said Deborah La Franchi, founder and CEO of SDS Capital Group and president of National New Markets Fund. “Our financial backing of this tremendous manufacturer — American Cast Iron Pipe Co. — secures and creates quality employment, offering lasting stability to the generations of families who have relied on it as their economic anchor.”
Atmore-based UB Community Development, a community development partner of United Bank, also announced on June 25 that it is providing $10 million in New Markets Tax Credits to ACIPCO for this project.
“From our first introduction to ACIPCO and learning about their impact on the community, we knew this was an important project for the region,” said Alex Jones, president of UB Community Development. “ACIPCO’s commitment to its employees and the community is a perfect alignment with UBCD’s mission of advancing community well-being.”
ACIPCO was founded in 1905 and has been employee-owned since 1924. It is one of the nation’s largest manufacturers of ductile iron pipe, spiral-weld steel pipe, fire hydrants and valves for the waterworks industry and high-frequency-welded steel pipe for the energy industry.
ACIPCO employs approximately 3,600 people, about 1,775 at its headquarters plant and offices in Birmingham and about 1,825 in its subsidiary locations. In total, the company operates 16 facilities in 10 states.
