Globe Metallurgical plant receives $13.5 million in tax credits to improve infrastructure

The Globe Metallurgical, Inc. plant in Selma has received $13.5 million in tax credits to refurbish its two furnaces and make other improvements.

Community Development, LLC (UBCD), a community development partner of United Bank, announced this week that it provided $13.5 million in New Markets Tax Credit allocations toward the silicon metal manufacturing facility in Selma. New Markets Tax Credits is a federal tax credit program enacted by Congress in 2000 to stimulate private investment in low-income urban neighborhoods and rural communities.

The NMTC allocation has enabled the plant’s owners to acquire and upgrade equipment, according to the release from UBCD. The tax credits will be used to refurbish two older silicon furnaces and update existing infrastructure, including foundations, material handling equipment, on-site power facilities, utilities and rail access.

The 170,000-square-foot manufacturing facility on Old Montgomery Road closed in 2018 due to low prices caused by a flood of imported silicon metal. The facility reopened in early 2022 and now employs roughly 100 skilled workers. GMI provides on-site job training in partnership with the Alabama Workforce Training Center (AIDT) for electricians, welders, millwrights, and mechanical and maintenance engineers.

The two-furnace operation in Selma has a total annual capacity of 22,000 tons of silicon metal. The plant is owned by Globe Metallurgical Inc., a subsidiary of Ferroglobe PLC, a producer of silicon metal, silicon-based and manganese-based specialty alloys.

“I am delighted to see the increased investment in the GMI Selma operation,” Congresswoman Terri Sewell said. “The New Markets Tax Credit enhances the economic opportunity for many families and businesses in the area. The product from GMI also supports U.S.-based manufacturing for critical strategic materials.”

Alex Jones, President of UB Community Development, LLC, said, “Being able to assist GMI in returning the Selma facility to production and employing 100 workers from the Selma community is exactly why NMTCs exist. Furthermore, supporting job creation in Alabama's communities is our mission and this project was 100% in our wheelhouse.”