Clean Line Deathwatch Victim #2: Southwire

Clean Line "preferred vendor" Southwire joined compatriot General Cable in the cemetery of good intentions this week.

Southwire announced that it will be closing its Flora, Illinois facility in the first quarter of this year.  That's a lot of permanent jobs that will disappear from southern Illinois.  And another of Clean Line's "strategic alliances" bites the dust.

Rock Island Clean Line's "strategic alliance" with Southwire:

Clean Line recently announced an agreement with Southwire, designating Southwire as the preferred supplier of the overhead transmission wire for the Rock Island Clean Line. The agreement anticipates that the wire will be produced in Southwire’s facility in Flora, Illinois, where the company employs approximately 130 people. Clean Line and Southwire announced the agreement on March 6, 2012, at the American Wind Energy Association’s Regional Wind Energy Summit- Midwest.

Grain Belt Express Clean Line's "strategic alliance" with Southwire:

A leader in technology and innovation, Southwire Company, LLC is one of North America’s largest wire and cable producers. Southwire and its subsidiaries manufacture underground and overhead Utility products, Renewable Energy products, building wire and cable, metal-clad (MC) cable, portable and electronic cord products. Southwire also provides OEM wire products, engineered products, continuous casting technology, and products made by Technology Research, LLC and Watteredge, LLC, both subsidiaries of Southwire Company.

Southwire’s Flora, Illinois plant has more than 40 years of experience in the design and manufacturing of overhead transmission conductor. Today, the plant leverages that expertise to support large-scale transmission projects like Grain Belt Express. The Grain Belt Express project could require as much as $35 million in materials from Southwire, depending on commodity prices and other variables.

So what happens to Southwire's extra-special MOU with Clean Line to purchase transmission wire for two of its proposed projects valued at more than $100M?  Will Southwire manufacture the wire for Clean Line in another state or even another country?  How exactly does this help the state of Illinois?  And how much did the Illinois Commerce Commission depend on an increase in Illinois jobs when it approved the Rock Island and Grain Belt projects?

SPRINGFIELD (Nov. 12, 2015) – The Illinois Commerce Commission (ICC) today approved an Order granting Clean Line Energy a Certificate of Public Convenience and Necessity to construct and operate the Illinois portion of the 780-mile direct current Grain Belt Express Clean Line.

The project will bring approximately $700 million of private investment to the state of Illinois, create about 1,500 jobs and support Illinois manufacturing.

Clean Line is also committed to supporting local businesses and has designated Southwire Company a preferred supplier for wire for the transmission line. Southwire will manufacture the wire at its plant in Flora, Illinois.

Whoopsie!  And what about all the economic promises to Illinois touted by the Chamber of Commerce?

“The Illinois Chamber of Commerce applauds Clean Line Energy and Southwire Company for coming together to support manufacturing jobs in Illinois,” said Todd Maisch, President and CEO of the Illinois Chamber of Commerce. “Through this agreement, the Grain Belt Express Clean Line will create vital work orders for a local company. Clean Line’s commitment to hiring locally whenever possible will ensure that the Grain Belt Express will be an economic boon to the state.”

Gone with the wind.

So, let's review.  One of three Plains & Eastern Clean Line "strategic alliances" is kaput.  One of three Rock Island Clean Line "strategic alliances" is kaput.  One out of five "strategic alliances" for the Grain Belt Express Clean Line is kaput.

A MOU with a company that can't get its projects approved, financed and built can't prevent economic disaster.

Who's next?