Elon Musk Wants to Move Tesla’s Incorporation From Delaware to Texas

Posted on by Michael Randle

Elon Musk wants to go all in on Texas.

The Tesla chief executive said the company would hold a shareholder vote to decide whether to incorporate in the Lone Star State after a Delaware court ordered him to give up a compensation package valued at $55.8 billion.

“The public vote is unequivocally in favor of Texas,” Musk said Thursday in a post on X. “Tesla will move immediately to hold a shareholder vote,” he said after conducting a poll on the platform.

The court’s decision, issued Tuesday in the Delaware Court of Chancery, called into question how Tesla’s board plans to compensate Musk. The court struck down Musk’s multibillion-dollar pay package after finding the process for securing its approval “deeply flawed.” It was a major setback for the CEO of the world’s most valuable automaker.

The Wall Street Journal

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Elon Musk’s X is hiring 100 people in Austin for a new content moderation center

Posted on by Michael Randle

For all of Elon Musk’s activity in Austin, his newest company, X, has been mostly left off the local map.

That’s soon to change.

Late last week, the company formerly known as Twitter said it will build a “Trust and Safety center of excellence” in Austin.

Bloomberg later reported that it plans to hire around 100 in-house agents who, it appears, will be focused on content moderation. It’s unclear when the new center will be up and running and where it will be located.

It’s part of what X leaders have said is a broader effort to curb child sexual exploitation. In the Jan. 26 blog post, the X team said they want to make the platform “inhospitable for actors who seek to exploit minors.”

Austin Business Journal

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Homegrown battery technology company opens plant in New Orleans East

Posted on by Michael Randle

ADVANO, which has developed a proprietary silicon technology for lithium-ion batteries, celebrated the opening of its new materials pilot plant at the New Orleans Regional Business Park in New Orleans East, across the street from NASA’s Michoud Assembly Center.

On January 30, representatives from GNO Inc., City of New Orleans, and New Orleans Business Alliance attended a ribbon-cutting opening of the facility, which will increase the ability for ADVANO to deliver ton-scale volumes of its proprietary technology, REALSi, and enable the New Orleans-based company to enter electric vehicle qualification programs.

The New Orleans Regional Business Park has 7,000 acres, access to Highway 90, I-510, and I-10, and is near six Class One Railroads and the New Orleans International Airport.

New Orleans City Business

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CoStar nears deal to move headquarters from D.C. to Northern Virginia

Posted on by Michael Randle

CoStar Group Inc. (NASDAQ: CSGP) is expected to move its headquarters to Rosslyn, consolidating its presence in Virginia and dealing another blow to downtown D.C.

The real estate data giant, which has steadily grown its Virginia operations — most notably in Richmond — even while maintaining its official headquarters in the District, is near a deal to acquire the Central Place office tower in Arlington from JBG Smith Properties Inc. (NYSE: JBGS), according to sources familiar with those negotiations.

On Jan. 12, Virginia’s State Corporation Commission accepted an application for a certificate of registration to amend the name of a CoStar entity formed in 2020 from CSGP Holdings LLC to CoStar Central Place HQ LLC. That document was signed by Scott Wheeler, CoStar’s chief financial officer.

The expected move represents another big economic development win for Virginia and another loss for D.C., on the heels of Monumental Sports & Entertainment’s proposed relocation to Alexandria and Fannie Mae confirming it will cut its lease short at Midtown Center by five years — the mortgage giant has a major office in Reston and the option to relocate its headquarters there.

Washington Business Journal

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Gov. Beshear Joins North American Stainless To Celebrate $244 Million Carroll County Expansion Creating 70 Full-Time Jobs

Posted on by Michael Randle

GHENT, Ky. (Jan. 31, 2024) – Today, Gov. Andy Beshear joined local officials and leadership from North American Stainless (NAS) and its parent company, Spain-based Acerinox, to celebrate the one-year mark since the company announced a $244 million expansion at its Carroll County facility, a project creating 70 full-time jobs.

“Metals is an ever-growing sector in Kentucky and one that touches every other industry,” said Gov. Beshear. “North American Stainless is the largest producer of stainless steel in the United States, and I’m excited to join them today in celebrating this great milestone. I want to thank NAS leadership for continuing to put their faith in the commonwealth and our talented workforce. The company has grown at an incredible rate, and I look forward to seeing that growth continue in the coming years.”

The expansion to the company’s 4.4 million-square-foot Ghent facility consists of a new cold rolling mill, new roll grinders, extensive upgrades of anneal and pickling lines to support the new rolling mill, a new temper mill and the expansion of the melt shop building. The expansion presents NAS with the opportunity to counter subsidized imports. The project also increases NAS’ annual total production capacity.

All major equipment for the expansion – including the melt shop crane, cold rolling mill, roll grinders and skin pass mill – have been contracted with the equipment in fabrication.

The building foundation construction is underway for the melt shop and excavation for the cold rolling mill foundations is underway. Site preparation for the skin pass mill has also been completed.

“We are thrilled to celebrate this expansion of our facility, a testament to our commitment to sustainability, economic growth in Kentucky and supporting our national security,” said North American Stainless CEO Cristobal Fuentes. “NAS would like to extend its gratitude to Gov. Beshear, state, federal and local officials for their partnership in making this expansion a reality. North American Stainless is proud to call Kentucky home. This expansion not only bolsters our capacity to provide consumers with sustainable, American-made stainless steel, but also positions us to compete effectively against subsidized imports of stainless steel.”

“This $244 million investment allows us to reinforce the circular economy, an area in which we serve as a role model, by adding new digital solutions to process the increased demand of stainless steel with improved productivity and efficiency,” said Acerinox CEO Bernardo Velázquez Herreros. “We are proud to invest further in our Kentucky factory North American Stainless, as it has established itself as a market leader both in the United States and across North America. At Acerinox, we are grateful to participate in the benefits of the commonwealth’s leadership and robust economic development.”

As part of the Acerinox Group of companies, NAS is a Delaware general partnership with Stainless Steel Invest Inc. as its managing general partner. NAS is situated on 1,600 acres in Carroll County. Founded in 1990, the company has become the largest fully integrated stainless steel producer in the United States and remains focused on being the leading producer of high-quality stainless steel in the Western Hemisphere.

NAS offers a full range of stainless flat including slabs, billets, plate, sheet and strip, as well as long products including wire, rods, angles and rebar. All of NAS’ production lines are located at one site, which allows the company to avoid inherent delays that are common in mills.

In 2016, NAS was awarded the Corporate Investment & Community Impact (CiCi) Award from Trade & Industry Development magazine for a $150 million expansion in Carroll County that created 36 full-time jobs.

Carroll County Judge/Executive David Wilhoite spoke on the economic impact NAS has had on the county: “North American Stainless has played a vital role in the economic growth of Carroll County over the years. Investing over $3 billion in the local community and creating over 1,500 jobs for the region, North American Stainless is a cornerstone of Carroll County and the Commonwealth of Kentucky. We are excited about the expansion and look forward to working with NAS in the future.”

Ghent Mayor Jimmy Lewellyn talked about the job creation the expansion is bringing: “The North American Stainless expansion is an excellent addition to our county and region. It will supply additional, well-paying jobs and improve our citizen’s overall quality of life.”

Carrollton Mayor Robb Adams congratulated NAS on the project: “On behalf of the city of Carrollton, I would like to congratulate North American Stainless on their upcoming expansion. Our relationship with local industries is very important to Carrollton and it continues to shape who we are as a city and community. As a community we continue to see the positive impacts of our industrial partners.”

Donny Kauffman, president of the Carroll County Chamber of Commerce, mentioned NAS’ impact on the community: “North American Stainless has proven to be a vital part of our community. The Carroll County Chamber of Commerce is excited about the new expansion and all the possibilities it brings to the business community.”

NAS’s investment and job creation build on the best four-year period for economic growth in state history.

Since the beginning of his administration, Gov. Beshear has announced more than 1,000 private-sector new-location and expansion projects totaling over $29.3 billion in announced investments, creating more than 51,800 jobs. This is the highest investment figure secured during the tenure of any governor in the commonwealth’s history. 

The robust job creation has been accompanied by rising wages across the commonwealth. The average incentivized hourly wage in 2022 and 2023 topped $26 in consecutive years for the first time.

Gov. Beshear has announced some of the largest economic development projects in state history, which have solidified Kentucky as the electric vehicle battery production capital of the United States: Ford Motor Co. and SK On’s transformative $5.8 billion, 5,000-job BlueOval SK Battery Park in Hardin County; AESC’s $2 billion, 2,000-job gigafactory project in Warren County; Toyota’s $591 million investment in Scott County; and INFAC North America’s $53 million investment in Taylor County, among others.

The Governor’s administration also secured the largest General Fund budget surplus and Rainy Day Fund, as well as the most jobs filled in state history. Last year, Kentucky set the record for the longest period with the lowest unemployment rates in state history.

Kentucky also secured rating increases from major credit rating agencies Fitch Ratings and S&P Global Ratings, and Moody’s Investors Service upgraded Kentucky’s credit outlook from stable to positive.

Site Selection magazine placed Kentucky first in the South Central region and top 5 nationally in its 2023 Prosperity Cup ranking, which recognizes state-level economic development agencies for their success in landing capital investment projects.

Gov. Beshear has also announced a “Supply Kentucky” initiative with the goal of boosting job growth, reducing costs and providing more security in the supply chains of our Kentucky companies.

To encourage investment and job growth in the community, the Kentucky Economic Development Finance Authority (KEDFA) in January 2023 preliminarily approved an incentive agreement with the company under the Kentucky Business Investment program. The performance-based agreement can provide tax incentives based on the company’s investment and annual job and wage targets.

Additionally, KEDFA approved NAS for tax incentives through the Kentucky Enterprise Initiative Act (KEIA). KEIA allows approved companies to recoup Kentucky sales and use tax on construction costs, building fixtures, equipment used in research and development and electronic processing. 

By meeting its annual targets over the agreement term, the company can be eligible to keep a portion of the new tax revenue it generates. The company may claim eligible incentives against its income tax liability and/or wage assessments. 

In addition, NAS can receive resources from Kentucky’s workforce service providers. Those include no-cost recruitment and job placement services, reduced-cost customized training and job-training incentives. 

For more information on North American Stainless, visit NorthAmericanStainless.com.  

A detailed community profile for Carroll County can be viewed here.  

Team Kentucky

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Alabama’s labor force is growing. Here’s how much.

Posted on by Michael Randle

The state’s unemployment rate was up slightly in December. But more telling figures show positive signs.

Alabama’s seasonally adjusted unemployment rate was 2.6% in December, up from 2.4% in November and roughly equal with the 2.6% recorded in the state in December 2022, Alabama Department of Labor data shows.

The U.S. unemployment rate was 3.7% in December.

Alabama’s unemployment rate has slowly risen since August when it was at a record low 2.1%. It was 2.2% in September, 2.3% in October, 2.4% in November and 2.6% in December.

Data also shows more people are looking for jobs.

During the past few months, Alabama’s labor force grew. The state’s labor force was 2,307,641 in August, and has slowly climbed each month, from 2,309,980 in September, to 2,313,224 in October, to 2,318,659 in November and finally 2,323,552 in December. Alabama’s labor force participation rate also rose in December to 57.2%, up from 57.1% in November and 56.7% in December 2022. The U.S. labor force participation rate was 62.5% in December.

Birmingham Business Journal

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Atlanta-based UPS to cut 12,000 jobs as shipping volume falls and labor costs rise

Posted on by Michael Randle

UPS plans to cut 12,000 jobs as demand for package delivery stagnates, executives said Tuesday. The layoffs will eliminate around 2.4 percent of UPS’s global workforce of roughly 495,000, with about 75 percent of the job reductions coming in the first half of 2024. Executives said they don’t expect those jobs to return.

“It’s a change in the way we work,” Chief Financial Officer Brian Newman said Tuesday during a conference call with analysts. “So as volume returns to the system, we don’t expect these jobs to come back. It’s changing the effective way we operate.”

UPS saw its fortunes surge early in the pandemic as online shopping became a more central part of people’s lives, but package volume has decreased since then. The company on Tuesday said package volume fell 7.4 percent in the fourth quarter, while revenue declined 7.8 percent year-over-year.

The Washington Post

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Atlanta office space available for sublease declines for the first time in more than a year

Posted on by Michael Randle

After several consecutive quarters of increases, sublease availability in Atlanta’s office market dipped in the final three months of 2023. 

The total availability was 8 million square feet, down by 5% from the third quarter, according to data from Jones Lang LaSalle (JLL). The decrease was the first in five quarters. 

This is an isolated data point, which means few conclusions can be drawn until another decrease — or multiple, really — follows. But it could be a pacesetter for what’s to come in 2024, as interest rates stabilize and companies continue to refine their space requirements.

“It’s a hopeful signal that the market is slowly returning to normal,” said Jeff Heller, a managing director with JLL. “And when I mean normal, I mean a standard level of activity and standard level of sublease versus direct-space availability.”

Atlanta has gone four months without seeing a large block of sublease space — around 40,000 square feet, or around a full floor — hitting the market. In December, there were seven subleases added to the market, none greater than 4,000 square feet, according to JLL.

Atlanta Business Chronicle

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Part of the world’s largest-known, deep-sea coral habitat is off Georgia

Posted on by Michael Randle

Scientists have found the world’s largest-known habitat of deep-sea corals off the Southeast coast and a significant portion lies just 90 miles offshore from Georgia.

The nearly continuous formation covers 6.4 million acres of the sea floor, an area larger than the state of Vermont. It was discovered by a team of researchers from the federal National Oceanic and Atmospheric Administration and other agencies, plus several universities and ocean exploration companies.

The corals were documented during a multi-year mapping campaign of the Blake Plateau, an underwater plain off the U.S.’ East Coast. The findings were published earlier this month in the peer-reviewed journal Geomatics.

The deep-sea corals cover an area that is roughly 310 miles long and 68 miles wide stretching from near Charleston, South Carolina, all the way down to Miami.

Unlike the barrier reefs and atolls favored by snorkelers, the corals off the Southeast coast are in clusters of mounds — the scientists identified 83,908 individual mounds across the study area. And they are located in much deeper water, with formations lying anywhere from a few hundred feet to 3,000 feet below the surface.

Atlanta Journal Constitution

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Hyundai’s Savannah area “Metaplant”: The Southern Automotive Corridor’s signature win to date?

Posted on by Michael Randle

For decades, the rumors that Volvo and Audi would build full assembly plants in the Southern Automotive Corridor would surface, then go away, then surface again. One rumor ended when Volvo announced it would build its first vehicle plant in the Western Hemisphere in 2015 near Charleston, S.C. in Berkeley County.

Who placed second in Volvo’s site search? Why, none other than a site near Savannah in Bryan County, Ga. Needless to say, the folks in Savannah felt that they had won the Volvo deal and were seriously bummed when they learned their place earned the bridesmaid status.

Seven years later, Hyundai showed up and announced the largest automotive project in the South’s history, a nearly $8 billion battery and assembly facility that will eventually house over 8,000 workers. Not a bad consolation prize, huh? And as many as 8,000 more could work near the Savannah region when production ramps up in 2025.

Hyundai broke ground on the massive plant near Savannah in October of 2022. The goal of the Korean automaker and its battery partner LG Energy is to begin production in early 2025 in order to begin capitalizing on new federal tax credits for EVs manufactured in the U.S. However, Hyundai officials have stated that production could begin as early as October of 2024.

The complex is enormous, encompassing 3,000 acres. Hyundai and LG Energy’s manufacturing process will be a blend of artificial intelligence, robotics and human labor for a “smart factory,” putting the meta into “Metaplant.” Suppliers to Hyundai so far have made commitments for over 6,000 jobs and an additional several billion in new investments.

According to the Atlanta Journal Constitution, “The facility will feature a glass-encased conveyor belt “bridge” to transport vehicles from the factory’s paint shop over to final assembly. Jumbo Park, the plant’s head of engineering, said the elevated and lit passage will be visible from Interstate 16.

“One of the campus’ parking lots will feature a solar-panel canopy, which Park said will provide 5% of the factory’s electricity. The rest will be obtained through power purchase agreements, with the goal of sourcing 100% of the facility’s electricity from renewable sources.”

“Visitors to the plant will be able to explore a greenspace at the front of the facility abutting the interstate, which officials said will be larger than Savannah’s iconic Forsyth Park, which spans more than 30 acres. The goal, Park said, is to “connect the community with the people who work in the plant.”

“For employees, on-site amenities will include restaurants, stores, a fitness center and health clinics, Hyundai officials said.”

Hyundai has not announced which models it will assemble at the Georgia plant. However, officials have said they will make electric models from the company’s three brands. Those would be Kia, Hyundai and the luxury line, Genesis. First year output is expected to be 300,000 EVs.

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