LUFKIN, Texas (KETK) – The Lufkin Economic Development Corporation (LEDC) approved two economic incentive grants for two companies on Tuesday.
One grant was approved for Jefferson Enterprise Energy, a company based in Houston.
Jefferson bought the renewable power plant in Lufkin, and the company hopes to hire more than 100 full-time employees with about 200 construction jobs.
Jefferson is expecting to invest at least $250 million to create a recycle pulp mill and sodium chlorate plant.
“We are thrilled to be able to have new manufacturing companies come into Lufkin and Angelina County,” said Tara Watson-Watkins, President and CEO of the Lufkin Angelina County Chamber of Commerce.
Watson-Watkins said the new companies will not only increase the community standing, but also open up some new job opportunities.
The company “is asking the city to grant a 10-year 100% ad valorem tax abatement beginning in 2024,” said Bob Samford, the LEDC Director.
Jefferson will be required to create these new jobs as part of their agreement. The next step is for the LEDC to share this information with the city council.
A second grant was approved for the STI Group through Texas Star Industrial Manufacturing, LLC. STI is expecting to hire at least 75 employees at a new location that is going to be in Lufkin.
The company’s headquarters are in Bridge City, Texas and they do business in different industries like oil and gas, petrochemical, aerospace and more. STI employs about 1,000 people total.
The new grant “includes a 10-year tax abatement that graduates from 100% in the first three years to 30% in year 10,” said Samford.
This grant also demands that STI spend $4 million and hires 75 new employees, but the agreement has to be brought before the Lufkin City Council to be given the green-light.
“STI is in a strong and sustainable growth mode and the City of Lufkin wants to make sure we support manufacturers that want to grow their business in Lufkin, Texas. The city is on the right path of positioning Lufkin to continue our commitment of creating long-term generational jobs for East Texas” said Samford, the LEDC Director.
“Our customer base is expanding with the rebound of the United States economy and while we have many options where we could locate these new employees at the end of the day we want to expand our company in Lufkin, Texas,” said Paul Spence, Chief Executive Officer of STI Group. Lufkin has a talented and diverse workforce and STI wants to be an economic contributor to the city’s success by locating our newest facility in this growing area of Texas.”