A new state designation for a Keppel AmFELS capital investment project at the Port of Brownsville is estimated to result in a $27.6-million net benefit (after-tax abatement) for the city. With the Texas Enterprise Zone project designation, Keppel AmFELS will be able to retain 500 jobs in Brownsville, ultimately impacting economic development within the region.
The Texas Enterprise Zone project designation comes with the recent approval of the Governor’s Office of Economic Development and Tourism.
Keppel AmFELS is a wholly owned subsidiary of Keppel Offshore & Marine. The company provides total solutions to the offshore, marine and energy industries with a global network of yards and offices. In Brownsville, Keppel AmFELS focuses on construction, refurbishment, conversion, life extension and repair of a complete range of platforms and vessels. These serve the oil, gas, renewable energy, transport and industrial sectors, as well as the Jones Act market.
“We are pleased to be designated as a Texas Enterprise Zone project. As one of the largest employers in Brownsville, we are proud to support job creation and retention in partnership with the state of Texas” said Mohamed Sahlan Bin Salleh, president of Keppel AmFELS. “People are our most important asset and we have developed a highly skilled workforce over the years with training and apprenticeship programs. Keppel AmFELS is also currently undertaking several Jones Act-compliant projects, including in the offshore wind sector, and we work with an ecosystem of American suppliers, further supporting the growth of the domestic industry.”
Continuing A Commitment
The Port of Brownsville has been home to Keppel AmFELS since 1990, bringing thousands of jobs and opportunities to the Rio Grande Valley. Keppel AmFELS is the leading manufacturer of oil platforms, container ships and wind turbine installation ships. Currently, Keppel AmFELS employs more than 1,400 employees of which close to 78 percent are Brownsville residents.
“We are grateful for the long-standing commitment Keppel AmFELS has had to Brownsville,” said Mayor Trey Mendez. “This project will enable Brownsville and Keppel AmFELS to continue to work together to create opportunities for our region.”
The Texas Enterprise Zone Program is an economic development tool by which local communities’ partner with the State of Texas to encourage job creation and capital investment in economically distressed areas of the state by allowing for a reimbursement of the state portion of sales and use tax for qualified purchases. For a business to receive benefits under the program, the local community must initially nominate a business to enterprise project designation.