When Lee Lawson took the owner of a centuries-old German steel company on a tour of Baldwin Preparatory Academy, he suspected it might be a turning point.

Hermann Butting, head of family-run Butting Global, was all smiles as he visited with students in the school’s new welding labs.

“That facility really helped spur them to say, ‘alright, this community is investing $100 million in itself and its workforce, our investment could come alongside and energize it even more,’” recalled Lawson, president and CEO of the Baldwin County Economic Development Alliance, referring to the cost of building the school that opened last August.

“We just hit a home run with Mr. Butting in the welding labs and for him to see the kind of investment we are making in this community,” he added.

That visit, paired with a $16.1 million incentive package, helped seal the deal: Butting Global is bringing its first North American manufacturing plant to Loxley.

“We are here to grow, contribute and to stay,” said Marcel Bartels, the company’s CEO, during Wednesday’s official announcement at Steelwood Country Club.

Incentives

The company will build a $61.7 million facility within the Loxley Logistics Center, expected to be completed by late 2026.

The company, as part of its agreement with the Alabama Department of Commerce, vows to add at least 83 new full-time jobs with an average hourly wage of $30.

Bartels and Baldwin County EDA anticipate the facility will add 100 new jobs with an annual salary averaging around $65,000, or roughly 34% higher than the average wage in Baldwin County.

Bartels said that within three years, “100 percent” of the workforce in Loxley will be locally hired.

The following is the breakdown of the incentive package:

• The state is offering an investment credit valued at $9.3 million over 10 years.
• A Jobs credit is also being offered through the Alabama Department of Commerce, valued at $1.7 million over 10 years.
• The state is also offering services through Alabama Industrial Development Training (AIDT) valued at $1 million.
• The Loxley Industrial Development Board authorized sales and use tax exemptions for the construction period that are estimated at $1.9 million.
• Butting Global is also being offered non-educational property tax abatements for 10 years with an estimated value of $2.2 million.

According to the Department of Commerce, the state is anticipating a $26.3 million addition of new revenues over 20 years. In addition, the state estimates the facility generating $118.4 million in new payroll over 20 years.

Bartels, when asked if the incentive package played a role in choosing to locate to Loxley, responded, “of course.” The company had been looking at sites in other states including California, New York, and Wisconsin.

He said a bit of Southern hospitality also didn’t hurt.

“If I take a look at this area, I slept that last four nights in Fairhope,” he said. “I was out for a run in the morning and met 20 runners. Every one of them said, ‘good morning’ or ‘how are you?’ Helpful. Friendly. I enjoyed staying here in this area and it’s as important as incentives.”

Clients, tariffs

The company was founded around the same time as the United States. It manufactures stainless steel welded pipes and other pipes and valves for industrial uses.

Bartels said one of the company’s highest profile clients is SpaceX, the Texas-based space technology company founded over 23 years ago by Elon Musk.

He said his company had been exploring a U.S. location for about 12 years, saying that many of the company’s North American clients preferred their product but noted that Butting Global was not an American firm.

“We said we have to change that,” Bartels said. “Now here we are.”

He said that while the threat of tariffs from President Donald Trump’s administration did not determine the company’s decision to move, having a U.S. presence would help them avoid potential tariff increases on imported steel products.

“We made the decision before the new administration and before the tariff (increases by Trump),” Bartels said. “It’s been a long-term decision for us. Of course, it will help us now (to avoid paying high tariffs). This will help our clients as well.”

Baldwin Prep

Having the facility located near Baldwin County Prep will be an advantage as well, Bartels said.

Butting’s Loxley facility is a short drive along Alabama State Route 59 to the new vocational and career tech high school, which is among the first of its kind in the United States.

“It’s really an investment into the future not only for all the young people (in Baldwin County) but also for America,” he said. “It’s incredible and is what we need for our business.”

Lawson credited the new school for closing an economic development deal, and he anticipates the school serving as a crucial backdrop for years to come.

“It was our first project to utilize Baldwin Prep in the pitch and the close, but it won’t be the last,” he said.