BROWNSVILLE, RGV - Brownsville Economic Development Corporation is just one contract away from being able to announce a major manufacturing project that will, over time, bring 4,000 high-paying jobs.
For almost three years, BEDC and the State of Texas’ business recruitment division have been working on securing a commitment from two European companies, one from Italy and the other from Finland, to establish a major manufacturing presence in Brownsville. Working together the firms will operate a foundry and a machining facility to produce, from raw product to finished parts, heavy duty equipment for Caterpillar and other companies in Mexico and the United States.
Asked how confident he is of landing the project, Jason Hilts, chief executive officer for BEDC, said: “I am very positive. There are some things that have happened in a positive way. We just cannot make an announcement until one more contract is signed.”
Brownsville was in competition with Monterrey, Mexico, to land the Italian and Finnish firms. Now, Hilts said, things are looking very positive for Brownsville.
“What is moving forward right now is that there are two different companies, both European, one from Italy, one from Finland. The Italians are the ones that are up first and moving forward. We are waiting for the last contract to be signed so we can officially announce it. A lot of contracts have been signed, we are waiting for one more. We are taking in resumes, looking at temporary facilities, equipment is being ordered. The company’s major customer is pushing for this.”
Asked if the Italian and Finish companies are working together, Hilts said: “Ultimately, they are both together, in terms of working together to support customers. It is a unique manufacturing concept of bringing foundry and machining together, cohabitating together in the same area, basically building their plants side-by-side and going from the manufacturing of components, or the foundry products, moving into a machining operation, and then sending the finished product to customers. There is nothing like this in the Americas. They do this in China but in China it is the same company doing it. There is nowhere where there are two different companies coming together to do this. By bringing those two together there are some significant logistic cost savings that will be realized that makes them very competitive.”
Asked how many jobs will be created, Hilts said: “Understand this, the way the business develops will be over a period of years as contracts come in and people are trained. So, from the Italian side we are looking at 300 jobs and from the other side, the foundry side, we are looking 1,200 jobs. Both of these are in the long-term. The whole project, over a ten-year period has the opportunity to create upwards of 4,000 jobs.”
Nearby technical schools, such as Texas State Technical College in Harlingen and Texas Southmost College in Brownsville will likely be needed to create specialized programs for the two manufacturing firms. Asked if the Valley has the skilled workforce required for a project of this size, Hilts said: “There are a lot of people in the Valley but there is a need to work together with the training institutions, the colleges. There are a lot of people with whom we can develop the skills. Initially, you may have to bring in a few people here and there but the long-term plan is to develop your workforce locally because that is the key to success. And, the fact that it is built out over a period of time is great. If all of a sudden we had to dump 1,000 to 1,200 manufacturing jobs into the area it would be very challenging, particularly with some of the skill sets required.”
Asked if there would be a specific training academy in Brownsville for the project, Hilts said: “If we were to work on a manufacturing campus for this particular set of companies and industries, then it would be a natural to be able to insert a training facility within this area and bring in the colleges to help facilitate training, in terms of machining, robotics, maintenance, metallurgists, all those kinds of things that will be required to support this industry and grow the industry.”
The foundry and machining operations would be built on land next to Highway 511, Hilts revealed. “This is a strategic location because it is across the street from the Southmost Water Plant. There we have the overweight corridor going to the Port of Brownsville. We have an interstate nearby so it is a very strategic location. A lot of stuff will move into Mexico via truck but we are dealing with heavy pieces so being on the overweight corridor is key so they can overload to the standards of Mexico,” Hilts said. Asked whether the new West Rail line would be used, Hilts said. “The rail, it is always a want. It does not always mean it is a need. The fact that we do have rail adds value.”
Hilts is originally from Michigan, which is known for manufacturing. He has been CEO of BEDC for 13 years. Asked how important the project is to him personally, Hilts said: “It is an exciting project because it is manufacturing in its rawest sense. I am a Michigan guy so seeing raw materials come in to a foundry, making a piece that is taken to another place and then value-added to, into a final product, this is the basis of manufacturing. To have that in the Valley, in Brownsville, is exciting. It brings a whole different level of manufacturing to the region.”
Asked if he ever dreamed of landing such a major manufacturing operation, Hilts said: “I have always had on my wish list bringing steel to the area. This is not a steel mill but, we start with this, then who knows. If you ever get a steel mill in the area, it is the basics of manufacturing. Cars need the steel, it is the basics of everything.”
Asked how Brownsville won out, Hilts said: “This lead originated through the State of Texas, almost three years ago. None of these companies have a presence in North America. On their very first visit, they said, ‘Oh you have a deep water port? So, we can import pig iron, we can import sand?’ So the port helped. Then they learned we have ship-breaking facilities at the port. They said, ‘Oh, so you have scrap, magnesium? Oh, wow.’ Brownsville went from No. 5 on the list to No. 1 on the list. And we stayed there. Was having the Port of Brownsville a key factor in their decision-making? Not necessarily but it did enhance the value of our community. The port brings value-add to this region.”
Editor's Note: The main picture accompanying this story is of Brownsville Economic Development Corporation's CEO, Jason Hilts. This is the first in a two-part series on Brownsville's efforts to land a major manufacturing plant. Part Two will be posted on Wednesday.
