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WEIRTON -- A site in the north end of Weirton will be the home of a Canadian company involved in the natural gas industry.
Bidell Gas Compression, a subsidiary of Calgary-based Total Energy Services Inc., announced Friday morning it will repurpose a former machine shop facility previously owned by ArcelorMittal Steel for use in the fabrication, sale, lease and service of natural gas compression equipment.
The 100,000-square-foot building is part of property recently purchased from ArcelorMittal by the Frontier Group.
"This will be our U.S. headquarters," said Bidell President Sean Ulmer. "It will be a completely stand-alone operation."
Ulmer said the increasing activity in the Marcellus and Utica shale regions was a reason to locate in West Virginia. The company has equipment shipped from Texas and Oklahoma and Bidell looked at sites in West Virginia, Pennsylvania and Ohio to start a U.S. facility.
"We saw a real opportunity to have a local manufacturing site in the heart of this shale play," Ulmer said.
Ulmer said the process included searching for a building big enough to meet the company needs, an available labor force and a good working relationship with government officials.
Some positions already have been filled to assist with the preparation of the building, but plans are to have 60 jobs by the end of this year and more than 100 positions by the end of 2018, he said. Jobs will include engineers, accountants and office staff, welders, pipefitters and those with electrical and mechanical skills.
"We really believe this is not a short-term investment," Ulmer said. "This is a long-term opportunity."
Operations will begin in two to three months, Ulmer said.
"This is a great day for the Northern Panhandle, Hancock County, Brooke County and the city of Weirton," said Pat Ford, executive director of the Business Development Corp. of the Northern Panhandle.
Ford said the announcement represents among the biggest developments for the area in about 30 years.
West Virginia Commerce Secretary Woody Thrasher, recalling his connections to the Weirton area, said the announcement is an example of the state's shale-gas initiative providing new opportunities for economic development focused on the natural gas industry.
"We've had several announcements, but none more exciting than this," Thrasher said. "I think we're at the beginning of a resurgence for this area."
Mayor Harold Miller said the announcement is a good step in rebuilding some long-neglected areas of the city.
"We can now not only work on Three Springs, but also the north end and downtown," Miller said.
Bidell will provide opportunities leading to other investments in the community, Miller said.
Hancock County Commissioner Jeff Davis agreed, saying he would like to see additional property become available for future development.
Davis cited the efforts by the West Virginia Development Office to promote the Northern Panhandle.
Craig Slater, vice president and general counsel for the Frontier Group, said the company is creating a master plan for the more than 1,100 acres it purchased in Weirton, demolishing structures which can no longer be used and marketing the rest.
"We look for ways to create opportunities," Slater said. "Bidell represents that first step."
Slater said Frontier Group also is working on other projects for Weirton.