#United States #Camden #Rural Development Partners #New Markets Tax Credit #MagPro

RDP and MagPro Partnership: A New Era for U.S. Manufacturing

In a significant move for American manufacturing, Rural Development Partners (RDP) has allocated $17.5 million in New Markets Tax Credit (NMTC) financing to MagPro, LLC, a leader in nonferrous metal production located in Camden, Tennessee. This funding will facilitate the acquisition of crucial equipment needed for the construction of five to seven vacuum furnaces, paving the way for the company's expansion and the creation of 150 additional jobs in Benton County. This initiative is part of a two-phase plan intended to maximize the utility of NMTCs, with the first phase already enhancing production capacity by nearly 100% and adding over 50 new jobs.

Enhancing Local Economies

Rural Development Partners is committed to fostering economic growth in rural and underserved communities across the United States. Mark Ward, the mayor of Benton County, expressed enthusiasm for the development, stating that the expansion will greatly benefit local economies. MagPro has shown a deep understanding of its role in enhancing economic opportunities and is recognized as a vital partner in community growth efforts.

A Thriving Magnesium Industry

The magnesium sector is experiencing remarkable growth, with U.S. consumption valued at $4.35 billion in 2021, increasing to $4.58 billion in 2022. Projections indicate that this figure could soar to $7.6 billion by 2032. Amidst this backdrop, MagPro aims to strengthen its operations, allowing for substantial increases in the procurement of raw materials and inventory. The company intends to leverage an abundant supply of raw materials while addressing the current shortage of manufacturers capable of producing and recycling magnesium at the required standards.

Production Goals and Future Aspirations

MagPro's forward-looking business strategy includes a 25% rise in the purchase of inventory and raw materials. This is expected to result in a substantial 40-50% growth in sales volume over the next half-decade. The ultimate aim is for MagPro to emerge as the leading primary magnesium producer in the United States within ten years, thus reducing the country's reliance on magnesium imports and generating more domestic jobs.

Dan Helgeson, CEO of RDP, remarked on the significance of this partnership, emphasizing that it will help to diminish the industry’s current dependency on international imports, particularly from China, which leads in global magnesium production.

MagPro's Unique Positioning

Founded in 2003, MagPro has become one of the largest magnesium recyclers and the second-largest primary magnesium producer in the U.S. Significantly, it is the only magnesium manufacturer globally that specializes in recycling low-grade magnesium scraps. The company offers tailored tolling conversion programs for customers, adapting to specific needs for various alloy specifications.

RDP's Role in Community Development

Rural Development Partners is recognized as a Community Development Entity, engaging in public-private partnerships aimed at catalyzing job growth in rural areas. Since 2004, RDP has secured thirteen NMTC awards from the U.S. Treasury, totaling $816.7 million, supporting numerous businesses and non-profits to expand operations and generate sustainable employment in areas that often lack such opportunities.

As RDP and MagPro embark on this venturesome journey, the focus remains on boosting local economies and providing high-quality jobs while enhancing America’s manufacturing capabilities. For further information on this partnership and the roles that RDP and MagPro play in the economic landscape, interested parties can check their updates on various platforms.