When there is a major victory by a state such as ThyssenKrupp’s choice of Alabama over Louisiana, everyone wonders about the reasons states competing for the project wins and loses.
In the aftermath, many point to the personal persuasive powers of the Alabama Governor Riley and his hands on approach to convincing ThyssenKrupp to land its steel plant in Alabama.
Which raises the question whether Governor Blanco was as responsive with information as was Governor Riley.
In a news conference, ThyssenKrupp Steel's vice chairman said Blanco's dedication to the plant was as strong as Riley's.
"We had the same personal support from Louisiana's governor as well," Peter Urban said.
However, according to the Montgomery Times, in an interview later, Urban said Riley distinguished himself with his rapid response to ThyssenKrupp's every question and concern.
"It was much faster than in every other state," Urban said.
So, which was it?
Was Riley better than Blanco?
From news reports, Riley took over the project from his economic development secretary in order to land the plant.Also, according to the Times, Alabama lawmakers came up with benefit package of more than “$810 million in tax exclusions, abatements and capital credit”.
Louisiana had previously allocated $300 million dollars to the project and the day prior to the decision, the House raised the ante to $400 million.The legislation failed to make it to the Senate.Also, on Thursday, Governor Blanco announced that the House had passed Bill 464, which was a -Use exempt for utilities.Again the bill did not make it to the Senate.
Which makes one wonder why specific legislation was not pushed quickly through the House and the Senate a week prior to the German company making the decision.
During Blanco’s speech to the legislature, the Governor towards the end of the speech said, “As you know, my economic development team is aggressively pursuing more than one-hundred leads with a potential capital investment of $13 billion. The largest lead we are pursuing is the ThyssenKrupp Steel Mill. In December, you set aside $300 million as a down-payment to secure this project. Alabama has since put up $400 million.
Let me be clear - we are very much in the running. I'm asking you to set aside an additional $100 million to match Alabama's commitment. In the event we land the steel mill, I will ask you to immediately raise the cap so that we can access the $300 million in infrastructure funding already set aside.
Why was it not at the top?Why was the cash not in hand and all incentives passed knowing the German Mill was making a decision soon.
Governor Blanco said Louisiana are winners since we were one of two finishers of dozens of sites competing.Today, we can join the rest of the heap.
If the Governor was going to take the credit had ThyssenKrupp selected Louisiana, she must take the blame for the company choosing Alabama.
Some things were out of her control such as time spent on recovery matters.But, to deal with this opportunity only one day prior to the decision, to not mention it as a top priority speaks volumes.
As ThyssenKrupp Steel's vice chairman said away from a press conference, "It was much faster than in every other state,"referring to Alabama’s Governor Riley.
As an Alabamian, you guys shouldn't be so hard on your home state (Louisiana). I have family that lives in the the New Orleans area and you guys have a lot more going for you than you realize. Having said that, you guys had little chance when it came down to LA vs. Ala. Alabama had many advantages going for it over Louisiana. First of all, Alabama (particularly the Bham area) has a long, long history with the steel industry. Alabama is one of the few (if not only) southern state that can rival Pennsylvania and other steel making hotbeds in regards to steel production. Alabama has been doing steel for well over 100 years while LA is a virtual newcomer. Second of all, you guys ran into a buzzsaw. Gov. Riley (current AL Gov) is one of the best AL governors we've had in the last 25 years. The man gets it done. Not only that, but the state has a kick ### economic development department that has been rated the #1 development office in the country by siteselection.com the last two years. Third, you guys had the advantage of the MS River and being able to bring Brazilian steel straight to the plant site, but you had the HUGE disadvantage of having to raise a SEVEN MILLION SQUARE FOOT plant site up several feet to be able to support the massive structure. Throw in the fact that AL has FOUR major automakers (Mercedes, Honda, Toyota, Hyundai) producing automobiles ALL within 3 - 5 hours of the plant site you have plenty of auto customers who will need this high grade automotive steel the plant will produce (that doesn't even count the new Toyota plant in MS and the plant being built in West Central GA). Finally (and maybe most importantly), Alabama has a HUGE German population living in it's borders. In fact, people of German ancestry make up likely Alabama's largest european ethnic group. Much like the French influence in Louisiana, Germans are Alabama's largest ethnic group. Therefore, making German business feel that much more at home in Alabama. In other words, Louisiana would have likely won the plant if this were a French company as opposed to a German company. In short, don't feel bad LA. You just ran into a state on a roll.
Written by Ellis
on 7/15/2007
As an Alabamian, you guys shouldn't be so hard on your home state (Louisiana). I have family that lives in the the New Orleans area and you guys have a lot more going for you than you realize. Having said that, you guys had little chance when it came down to LA vs. Ala. Alabama had many advantages going for it over Louisiana. First of all, Alabama (particularly the Bham area) has a long, long history with the steel industry. Alabama is one of the few (if not only) southern state that can rival Pennsylvania and other steel making hotbeds in regards to steel production. Alabama has been doing steel for well over 100 years while LA is a virtual newcomer. Second of all, you guys ran into a buzzsaw. Gov. Riley (current AL Gov) is one of the best AL governors we've had in the last 25 years. The man gets it done. Not only that, but the state has a kick ### economic development department that has been rated the #1 development office in the country by siteselection.com the last two years. Third, you guys had the advantage of the MS River and being able to bring Brazilian steel straight to the plant site, but you had the HUGE disadvantage of having to raise a SEVEN MILLION SQUARE FOOT plant site up several feet to be able to support the massive structure. Throw in the fact that AL has FOUR major automakers (Mercedes, Honda, Toyota, Hyundai) producing automobiles ALL within 3 - 5 hours of the plant site you have plenty of auto customers who will need this high grade automotive steel the plant will produce (that doesn't even count the new Toyota plant in MS and the plant being built in West Central GA). Finally (and maybe most importantly), Alabama has a HUGE German population living in it's borders. In fact, people of German ancestry make up likely Alabama's largest european ethnic group. Much like the French influence in Louisiana, Germans are Alabama's largest ethnic group. Therefore, making German business feel that much more at home in Alabama. In other words, Louisiana would have likely won the plant if this were a French company as opposed to a German company. In short, don't feel bad LA. You just ran into a state on a roll.
Written by Ellis
on 7/15/2007
Just so everyone knows, the last TWO Ellis posts are by me (they are double posts...sorry) and the one before me is a DIFFERENT Ellis. (Talk about a coincidence...I should have looked closer at who was writing the previous posts). I failed to point out that it turns out that LA's incentive package was around 1.8 BILLION compared to 810 million from Alabama so incentives had nothing to do with the decision. In other words, money wasn't the main deciding factor.
Written by Ellis
on 7/15/2007
You know I am tired of these libs CRYING about ohh it wasn't fair that Alabama got the BID! GROW UP! We truly are as one poster said "Lousyana" to the rest of the nation and the world. The dems ran this state for HOW MANY YEARS? they had all the political offices, Sen and Congressmen for HOW MANY years? and Governor for most of the past 100 years. Our environmentalist points out that we didn't get our oil revenues for 89 years, well HEY BUBBA GUESS WHAT? your party RAN this state that WHOLE TIME!!! NONE your YOUR PARTIES Pols wanted to fight that batttle so then when we do get them, (With a MAJORITY OR REPUBLICANS representing our state) you have the NERVE to give Katrina Mary Landrieu and Crazy Kathy Blanco the CREDIT? that makes NO SENSE! Ok we got beat, on this deal, now lets fix our problems, and do something! Lets not WHINE that we aren't being treated fairly! Lets not put our hand out and say GIVE US MORE!! Or is what a poster on another board said true, we are no longer the Pelican state we are the Welfare state? I truly hope not!
Written by Ole Jarhead
on 5/16/2007
The answer for the failure of our state to attract Thyssen-Krupp is simple "Louisiana is judged by people interested in doing business here by the what it does, not what it wants".
In other words, all the image enhancement commercials filling the airwaves and the newspapers etc produced by the state doesn't fool anyone of any substance to think that the Tiger has indeed changed it's stripes.
How can the state provide for their needs, if it is, and has been, and will continue to overlook their own citizens safety, health, and well being, especially when there are solutions on the horizon?
With the faltering of the Thyssen Krupp deal, I think it is probably safe to say that the media hype generated about 'Boudreaux's Boxes' by WAFB channel 9 is, how do they say it in Duetchland? (Germany) Oh, I know, Das rad ist kaput!!!!!! Sprechen sie Duetch? Sprechen sie strongconcrete?
But on the upside of things, Louisiana now has around 300 million dollars sitting around that can be dedicated to some good use, something concrete, something like Strongconcrete.
Then maybe there will be some substance to Gov. Blanco's radio commercials where she says "Together we are building a safer, stronger, smarter Louisiana". Undt das es wunderbar!!!!!
Aufverdersein..............
Undt Geshundheit!!!
Written by William Smith
on 5/16/2007
I said it on the air the minute I learned the governor was going to Germany,"kiss that plant goodbye, she's the kiss of death."
Do you honestly think this failure of a governor could present any rational thought to the Germans?
Harry Hoyler
Written by Harry Hoyler, KKAY
on 5/14/2007
Amen, Sharon.
Written by C. L.
on 5/14/2007
Blanco and state were slow - plan and simple. And, I heard there was a huge differnce in the Package offered by Entergy as compared to Alabama Power and Light - something like 8 to 9 million dollars on a monthly Basis? Entergy is a mere shell of what it used to be and the Katrina excuse is wearing thin - I place alot of blame on Entergy and Gov. Blanco's public perception nationwide - As a state we should probably hire a public relations firm to ask hard questions about the state's image on a national scale.
Written by greg w
on 5/14/2007
If you listen to Gov. Blanco and her team, they think that they did all they could, to "sweeten the pot" for this deal. As others have noted, part of Alabama's winning bid was a well-educated work force. Our plant site may be near the Mississippi River, but our potential work force for this plant may have a lower education level. That means workers who may be less literate than ThyssenKruppe wants. Less well-educated workers mean that ThyssenKruppe supervisors and training staff have to spend more time training them to do their jobs. While having a lower level of education may be okay for working out on the oil and natural gas platforms, it's not okay for working with computer systems, mechanized systems, and being alert to problems with machines that, in an instant, can crush fingers or hands. Skimping on basic education skills for our city's work force is no longer an option for our city and region, if our goal is to bid on, and win, contracts for, if not a steel plant, then other industrial projects, our first responsibility is to make sure our work force is ready to work, and has the right skills for each available job.
Written by Wendy King
on 5/14/2007
This decision was MADE by TK's Executive Committee back in mid to late April. It simply was RATIFIED and announced by their Board of Directors this past Monday. Blanco and Economic Development team did not ask for enough MONTHS ago. Like the La. Road Home under assessment of total money needed this is consistentWe have no one .in present governmentwith any concept of the magnitude of investment needed to land jobs at this level. Alabama wins -again- simply because of competency.
Written by Earl Short
on 5/14/2007
All of this was 'political BS rhetoric' on the part of Her Honor Da Guv and and her 'Economic Depressing Team'in an effort to make the public think that they were doing something positive! We never had a chance at this mill in the first place! Due to Entergy ripping the public off, not to mention all our businesses...it wouldn't have made much sense to pay $60,000,000 more yearly in energy cost and that's not to mention having to build up the site ten feet more and drive thousands of pilings to support their plant!! The Guv said she was 'plumb puzzled' by the outcome as to why the mill didn't select Lousyanna!!
That....IS NOT DIFFICULT to understand at all; considering from whence the statement came!!
Written by Sharpsman
on 5/14/2007
To Greg W - "As a state we should probably hire a public relations firm to ask hard questions about the state's image on a national scale." Friend, I hear what you are saying. But, consider this, I am quite sure someone suggested to the current State administration that they hire a company to distribute the Federal dollars to South Louisiana. Look where that got us!!!
Based on the daily news (MOSTLY BAD) coming out of this state, it doesn't take a rocket scientist to figure out what people think of us. Let's save a small fortune and concentrate on improving our education system and our business environment. Then, when election time comes around, let's elect some COMPETENT LEADERSHIP. We can't fix our problems overnight- our "way of life" took centuries to create- so let's start now to fix piece by piece in a deliberate and long-term manner to benefit the next generation of Louisiana.
If we ever really "fix" our probblems for future generations, and not band aid them until the next election, companies like Thyssen-Krupp will pay us to locate in Louisiana! Wouldn't that be nice.
Written by walker0416
on 5/14/2007
I can agree with most of the blog authors writings below. It seems to be a commination of all these problems except the environmentalist Jeffrey Cole. I suppose he doesn't realize the "Cancer Alley" he refers to is worth trillions of dollars to Louisiana. I can definitely agree with Sharpsman. Others have good ideas about education, well I can tell you from "Experience", with children in school in Texas, Mississippi, Alabama and then Louisiana, we lag behind those States. For one difference teachers speak good English and that reflects on the students to learn how to speak property.
Entergy is certainly a problem for any industry that requires large quantities to run its operation.
Written by Ben F Odom
on 5/14/2007
Louisiana is paying the price of a lot of past sins. When you are on the bottom of so many lists comparing states including education, poverty, health care, etc....ithis has to impact businesses deciding on whether to come to Louisiana. Couple that with the negative and well earned political "reputation" of Lousiana and the sluggish and incompetent decision making capabilities of the current administration which was well noticed and branded in the world's mind during Katrina, one can certainly understand why ThyssenKruppe decided to go elsewhere. It is a shame that Louisiana has deteriated to its current state in the nation. With one of the biggest draws for plant enterprises like ThussenKruppe - the Mississippi River (and New Orleans port) - we should be blowing the competition away.
Written by DF
on 5/14/2007
If the only reason a company does not want to locate infrastructure here is because we are not the cheapest...I say, let em go. Until Louisiana can sell "Quality" before "price" this is a game of diminishing returns. We have allowed the oil companies to run ramshackle over our environment without any consequences... We have "Hollywood" here because it's cheaper than anywhere else...now. Our southern Mississippi River parishes have been named "Cancer Alley."
We now sit on an enormous revenue potential from oil royalties... Amazing that we have allowed this to be squandered for the last 89 years... Maybe we should invest this money in becoming a "Quality" place... instead of spending it to advertise how we are CHEAP wal mart for Nazi industry...
Written by Jeffrey Colen
on 5/13/2007
Steve this was an excellent article. Really what did you expect the steel mill executive to say publically? His off the record comments are telling but I tend to agree with a previous poster on this matter. They made up their mind some time ago and used Louisiana's bid to "up the ante". That's business though. "One step ahead" is a good way to describe Alabama's efforts in several deals in the recent past. The steel mill will be perfectly situated with auto plants in Montgomery for instance. Riley showed excellent leadership and the entire federal, state, and local governments all worked together Republican and Democrat to get this deal. I don't know if you'all are aware of the part that education and local workforce plays in putting together a plan for a big deal like this. Alabama, Mississippi, & Florida have all made giant strides in being able to guarantee a skilled labor force for any industry it is trying to attract. They are doing it with trade schools and the junior college systems. Lousisiana has fallen behind. All students need not attend college to be successful in life but they need a skill. Louisiana has not looked good on the National stage with finger pointing elsewhere at every level about just about everything. The other states have quietly moved forward. Their tax bases are stronger. Their roads better. It is just fact. I don't think that this is because of the political party in the statehouses or legislatures for that matter. I think it has to do with some of the people who for years have represented and lead (?) Louisiana. IMHO in the wrong direction. I hope a new governor will move Louisiana toward a smarter, stronger future. The Louisiana Legislature will have to change its ways also. Make no mistake about that. Louisiana must shake its hold by a few families and show the nation it can be truly the Nation's Energy Coast because of all its people. The Gulf Coast can be a real power if the States can come together and not fight one another. I believe that also is a strong selling point for Alabama.
When there is a major victory by a state such as ThyssenKrupp’s choice of 
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