Port Corpus Christi Anchors Major Partner for its La Quinta Trade Gateway

Corpus Christi, TX – Port Corpus Christi and other regional partners introduce a major partner for its La Quinta Trade Gateway, a multi-cargo terminal, located at the La Quinta Channel. voestalpine, the premier international steel making and processing group from Austria, announced its final site selection for the development of its U.S. direct reduction facility. The official announcement took place at the Portland Community Center, Wednesday, March 13, 2013 and is subject to successfully completing and executing all agreements with various regional and State of Texas partners.

Headquartered in Linz, Austria, The voestalpine Group is a steel making, processing, and technology group that operates worldwide and manufactures, processes and develops high-quality steel products. With 500 production and sales companies in more than 50 countries on five continents, the Group has been listed on the Vienna Stock Exchange since 1995. With its top-quality flat steel products, the Group is one of the leading partners to the automotive and domestic-appliance industries in Europe and to the oil and gas industries worldwide. The voestalpine Group is also the world market leader in railway switch technology, special rails, tool steel, and special sections. In the 2011/2012 business year, the voestalpine Group staffed roughly 46,500 employees worldwide.

The planned direct reduction plant will produce high quality DRI and HBI (“sponge iron”) from iron ore pellets. DRI and HBI are comparable to the highest quality scrap or pig iron, and therefore an excellent pre-material for the production of crude steel. In contrast to using pure coke-based blast furnaces, the planned direct reduction plant will exclusively use more environmentally friendly natural gas as the reducing agent. Additionally, cutting edge environmental control technology will be implemented in order to ensure low-emission iron reduction.

“voestalpine is a major international player in the steel making and processing industry with a very strong focus on the environment. Their operation will drive import and export cargo through the Port of Corpus Christi. The Port’s commitment, with support from the U.S. Army Corps of Engineers, to fund and extend the La Quinta Ship Channel to the site of the La Quinta Trade Gateway was a significant factor in the decision by voestalpine to select our site. Port representatives and other regional leaders have visited their plant in Linz, Austria and have been working with the GoWest team for over a year to facilitate this project. The Port and its Commission will continue working with voestalpine throughout the development of their project.” Said Mike Carrell, Chairman Port Corpus Christi Commission.

voestalpine will be the anchor tenant at La Quinta Trade Gateway; further establishing Port Corpus Christi and our community on the international map; and potentially attracting more industries and commercial activity to the Port and region. voestalpine proposed $700 million (EUR 550 million) investment for its direct reduction plant, and 150 fulltime permanent jobs are a perfect fit for the region. It meets the objectives of the Port’s Mission and specifically for the La Quinta property. The proposed voestalpine development reserves part of the waterfront and adjacent uplands at the La Quinta Trade Gateway for other users.

Port Corpus Christi acquired the La Quinta property (approximately 1000 acres) in 1998. In 1999, Port and U.S. Corp of Engineering (COE) initiated a feasibility study for Ship Channel Improvements including extending La Quinta Channel. After reviewing the COE’s recommendations, the U.S. Congress authorized La Quinta Channel Extension to reach the La Quinta Property. In 2007 The Gulf Cotton Compress became the first tenant on La Quinta Property – anticipating the container terminal in the future. Full funding to complete the La Quinta Channel Extension project was possible through a $58 million Congressional appropriation in 2010. The COE awarded the construction contract in 2011 and the extension to be complete summer 2013. The construction of the La Quinta Channel extension finally made the La Quinta Property truly marketable as a premier greenfield site on deep water, with nearly 4,000 feet (3800’) of waterfront. The Port fully permitted and plans to develop the waterfront, and approximately 150 to 200 acres as a multi-purpose container terminal.