MEMPHIS, Tenn. (February 15, 2023) — The EDGE board approved a 10-year PILOT (Payment-In-Lieu-Of-Taxes) for MSS Steel Tubes USA LLC, a subsidiary of the Portuguese Metaloglava group. The $658,000 PILOT will facilitate construction on a new welding and pipe manufacturing hub at 4129 Outland Road.
MSS Steel will create 130 new jobs with an average wage of $61,846, including benefits, and plans to invest $6.8 million in the community. The company considered several cities for its U.S. location before making the decision to move to Memphis.
The existing building requires $500,000 in renovations on 94,000 square feet of the present 632,060-square-foot facility. EDGE estimates $6,500,000 to be generated in local tax revenue for the duration of the PILOT.
When international and domestic distribution companies shop for relocation sites, Memphis is a stand-out candidate based on the city’s logistics and infrastructure. Such was the case for Belnick LLC, an on-line furniture supplier with an exceptional supply chain. The company, doing business as Ubique Group, operates four United States distribution centers and has outgrown its largest facility in Olive Branch, Miss. Ubique Group considered expanding in Georgia and Ohio before deciding to relocate their Mississippi site to a larger facility in Memphis to accommodate substantial growth.
EDGE granted Ubique Group a $14 million 10-year PILOT to encourage relocation to a new site on the corner of Holmes and Malone Roads in Memphis. The company plans to create 152 new jobs with an average wage of $43,700. Estimated annual property taxes will average $380,000 during the PILOT term and $1.3 million after. Staff projects $11 million in total local tax revenues to be received during the PILOT term.
West Fraser, Inc. is a Canadian-based diversified wood products company with more than 60 facilities in Canada, the U.S., and the United Kingdom—and headquarters its North American operations in Germantown. As the company has expanded to provide support functions to both U.S. domestic operations and its global personnel, relocation is necessary.
“When West Fraser, Inc. decided to expand their United States headquarters, the company made the decision to stay in Shelby County based in part on EDGE’s approval of this PILOT application,” said Max Aldrich, Chief Operating Officer with Commercial Advisors. “West Fraser will be able to create new, high-paying jobs and looks forward to continuing their investment in Memphis.”
The EDGE Board granted West Fraser, Inc. a $5 million 10-year PILOT to encourage the company to move their headquarters to 57 Germantown Court in Cordova, creating 80 new jobs with an average wage of $80,000.