FOR IMMEDIATE RELEASE
December 15, 1997



Jill Lawrence
VEDP
(804) 371-0049
Governor Allen Announces $400 Million Steel Recycling Plant for Dinwiddie County
-- TXI Virginia Steel Recycling Will Create 400 New Jobs - -


Dinwiddie County - Governor George Allen and Bob Rogers, President of TXI, today enthusiastically announced the decision by TXI to locate a new steel recycling plant in Dinwiddie County, a $400 million investment that will employ 400 people over the next three years. The new plant is TXI's Virginia steel recycling plant, and is the largest new industrial recruitment in Virginia this year. Virginia successfully competed with North and South Carolina for this major investment opportunity.

"This Virginia recycling plant is an excellent example of how a vibrant economy and healthy environment complement one another, and responsible corporations like TXI are using advanced technology and innovation to improve the environment and our citizens' quality of life," said Governor Allen. "TXI's outstanding investment is another positive sign that Virginia's Renaissance is growing heartily. This decision is great news for the future prosperity of the people in this entire Petersburg-Dinwiddie area."

As part of the incentives to secure the Chaparral Steel investment, Governor Allen will also be designating a Petersburg/Dinwiddie Joint Enterprise Zone wherein the plant will be located. In 1995, Governor Allen was able to double the number of Enterprise Zones in Virginia from 25 to 50. "This great success is another gratifying example of the benefits in jobs and investments that come from Enterprise Zones," stated Governor Allen.

TXI is the largest producer of cement in Texas and a major supplier of aggregate and concrete products in Texas, Louisiana and California. Through Chaparral Steel, its subsidiary, TXI is a significant producer of structural and bar steel products for the North American construction and specialty steel markets. In addition, TXI is a leading North American recycling company.

TXI's new Dinwiddie plant will produce more than one million tons of steel products a year from recycled steel. Products will include structural beams used in general construction and manufactured housing. The facility will be the company's latest to combine new casting technology with state-of-the-art melting technology and a specially designed rolling mill to provide both low operating costs and a wide range of products. Site preparation is already underway with production scheduled for mid-1999.

"Chaparral Steel has long been a market leader in developing efficient production processes," said Robert D. Rogers, President & CEO of TXI, Chaparral's parent company. "I am extremely impressed by the hard work of Commonwealth and Dinwiddie County staffs that has made it possible for us to locate our new facility in Virginia."

"Including the Midlothian, Texas, steel recycling plant, TXI's steel operations will recycle 8 percent of the cars and light trucks that are scrapped annually in the United States," said Gordon Forward, President and CEO of Chaparral Steel, a unit of TXI.

Governor Allen presented a $3 million grant from the Governor's Opportunity Fund to Dinwiddie County for site preparation, and also announced that Workforce Services funds will be used to cover the company's training expenses.

Governor Allen also announced that he has included $6 million in his 1998-2000 biennial budget to increase funding for Workforce Training Services. The workforce services program, which is administered by the Virginia Department of Business Assistance, is a cornerstone of Governor Allen's economic development initiative. Past economic development projects that have utilized workforce services include Motorola, Gateway 2000 Computers, White Oak Semiconductor, Dominion Semiconductor, Reynolds Wheels, Jouan Medical Equipment, Hewlett-Packard, Nexus Communications, Iceland Seafood, Dynax, Drake Extrusion, Frito Lay, Boise Cascade Office Products, Maple Leaf, Ontario Store Fixtures and Toray Plastics.

The Virginia Economic Development Partnership, the Appomattox Basin Industrial Development Corporation, Dinwiddie County and the City of Petersburg assisted the company with its decision. The Virginia Department of Rail and Public Transportation will assist with rail access funding.



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