The Maruichi stainless steel tube factory will be built in Seguin.

Another manufacturing plant is coming to Seguin – the latest stop on the Central Texas city’s journey to becoming an industrial powerhouse.

Seguin officials said Wednesday that Japanese manufacturer Maruichi Stainless Tube Texas Corp. is building a $75 million plant that will pump steel tubing and employ 106 workers within two years.

The 125,000 square foot facility will be located just south of I-10 on the northwest side of Seguin in the burgeoning Rio Nogales Industrial Park. The Seguin Economic Development Corp. sold the company a 33-acre parcel in the park for an undisclosed price.

Construction is expected to begin in early 2023 and plant operations could begin in the first quarter of 2024.

“The strategic location, access to a skilled workforce, and the partnership and genuine support we have received from the SEDC Board of Directors, Seguin City Council, and City staff have contributed to solidify Maruichi’s decision to locate this project in Seguin,” said Takashi Onishi. , president of Maruichi Stainless Tube Co.

Seguin, a sleepy town surrounded by farm fields and overshadowed by neighboring New Braunfels, has transformed into a manufacturing hub in recent years. In Guadalupe County — where Seguin is headquartered — 23% of employees work in manufacturing, compared to 8% of workers statewide, according to the Bureau of Labor Statistics.

The plant will be built adjacent to a United Alloy metal fabrication plant and a Niagara bottling plant. CPS Energy’s Rio Nogales natural gas power plant and a Teijin Automotive plant, which produces bed liners for the San Antonio-built Toyota Tundra pickup, are in the same industrial park.

Maruichi Stainless Steel Texas Corp. announced plans to build a $75 million plant in Seguin. Its Japanese parent company operates this plant in Oregon and facilities in California and Chicago.

Courtesy of Maruichi Steel Tube Ltd.

“Maruichi’s investment will help diversify and strengthen Seguin’s fast-growing manufacturing industry,” said Josh Schneuker, executive director of the Seguin Economic Development Corporation. “Economic development is a team sport, and today’s announcement would not be possible without the collaboration between SEDC, the City and our Greater regional partner: SATX.

Maruichi said most of the tubes made at Seguin will be for customers producing semiconductors, a technology used in a wide range of products. A global shortage of semiconductors has crippled industrial production around the world over the past year, particularly in auto factories.

“The Seguin facility will help Maruichi further meet demand in the United States for several large-scale semiconductor manufacturing plant construction projects,” Seguin officials said in a statement.

In addition to the sale of the land, Seguin City Council and SEDC approved a grant of an undisclosed amount to the company. Maruichi must meet its investment, hiring and payroll targets to receive payment.

Beyond the Rio Nogales industrial park, a Vitesco Technologies plant that produces automotive powertrains sits about two miles north and employs 1,500 people. Meanwhile, Caterpillar Inc. operates an engine plant in Seguin. It opened in 2008.

Manufacturing jobs in Seguin pay more than the average salary in Guadalupe County. Manufacturing workers earned about $61,000 in 2021, according to the BLS, compared to an average annual income of about $50,000 for all other workers there.

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