South Texas Region · In Formation — 2026
Balou Car
& Foundry
A vertically integrated industrial campus — producing domestic EAF structural steel, ISO and 53-ft domestic containers, FRA-certified freight railcars, and CO₂-derived synthetic limestone aggregate from approximately 310 acres in South Texas, with dual Class I rail and truck access.
$213.5M
Steel Division Revenue
at Design Output
$69.5M
Railcar & Container Revenue
at Design Output
200K
Tons of Recycled Steel
per Year
3,600
Containers/Year · Line B
+ 280 Railcars · Line A
~310
Acres · South Texas
Target Campus Area
One Campus. One Roof. From Scrap to Container, Railcar & Aggregate.
Step 01
Scrap Receiving
230,000 tons/yr via unit train · 4 receiving tracks · on-site staging yard
Step 02
EAF Melt Shop
2 × 100-ton furnaces · 200,000 tons/yr · Near-zero carbon on renewable power
Step 03
Rolling Mill
Bar · Coil · Plate · Shapes · Specialty — serving Toyota, International Motors & regional industry
Step 04
Manufacturing Campus
Line B: 3,600 containers/yr · 53-ft & ISO · CSC-certified · Line A: 280 railcars/yr · FRA · AAR M-1003
Four Operating Divisions
The Balou Platform
01
EAF Steel Production
Two 100-ton Electric Arc Furnaces transform locally sourced scrap steel into six families of domestic structural steel — eliminating Section 232 tariff exposure for South Texas manufacturers. No rebar. No wire rod. Focused exclusively on structural and specialty grades the region currently imports from mills 800–1,200 miles away.
Structural Bar — A36 · A572 Gr.50 · A709
Structural Shapes (W-flange, I-beam) — A992 · A572
Hot Rolled Coil — A36 · A516 · HSLA grades
Flat Plate — A36 · A572 · A516 Gr.70
Specialty Bar — 4140 · 4340 · A434 · Grade 8
Internal Transfer to Railcar Campus — below-market pricing
200,000
Tons/Year Max Capacity
$213.5M
Annual Revenue Target
02
Rolling Mill & Products
A complete hot-rolling facility converts EAF billets into the full range of structural sections the South Texas market requires — wide-flange beams, structural bar, coil, plate, and specialty shapes. Products serve automotive manufacturers, Eagle Ford Shale operators, and the I-35 infrastructure corridor — with significantly shorter regional lead times versus three to six weeks from distant out-of-state mills.
Wide-flange structural beams (W4–W36)
Hot-rolled coil (ASTM A572 Gr. 50/65)
Structural bar & merchant rod
Hot-rolled plate (¼″ to 2″ thickness)
Custom specialty shapes on order
Automotive, energy & infrastructure markets
South Texas
Target Market Region
$926/ton
Average Revenue/Ton
03
Railcar & Container Manufacturing
A twin-line manufacturing hall operating two parallel production lines. Line B (Primary): ISO and 53-ft domestic intermodal containers — the only domestic container size that cannot be imported from China — 3,600 units per year at full output, shipped 90 miles by Class I rail to Port of Corpus Christi. Line A: Five AAR-compliant standard-gauge freight car families, with car body steel transferred directly from our own rolling mill at significant cost advantage over any non-integrated competitor.
Line B — Container (Primary): 40-ft ISO & 53-ft domestic · CSC ISO 668/1496 certified
53-ft containers: only size with zero Chinese import competition
Finished containers ship via Class I rail to Port of Corpus Christi
Line A — Railcar: Boxcar · Hopper · Flatcar · Centerbeam · Gondola
FRA · AAR M-1003 · 4′8½″ standard gauge · No tank cars
Workforce cross-trained across both lines — shared assembly hall
3,600 / 280
Containers / Railcars per Year
at Full Output
$69.5M
Combined Division Revenue
at Full Output
04
Aggregate Production
The aggregate division converts gas turbine exhaust CO₂ and EAF slag into synthetic limestone through Blue Planet's Geomimetic® mineralization process — permanently sequestering carbon that would otherwise enter the atmosphere. Emissions become feedstock, and feedstock becomes a saleable construction material, making Balou one of the few industrial operations that simultaneously produces and sequesters carbon on the same campus.
Gas turbine CO₂ + EAF slag → synthetic limestone aggregate
440 kg CO₂ permanently sequestered per ton of aggregate
Carbon is mineralized — not released into the atmosphere
500,000 tons/year production capacity at full output
$15.4M annual revenue at design output
Blue Planet Geomimetic® process — proven at commercial scale
440 kg
CO₂ Per Ton Permanently Sequestered
500K
Tons / Year at Full Output
Why Texas
South Texas Was the Only Rational Choice
South Texas is a $10 billion-plus manufacturing cluster that imports every ton of structural steel it consumes from mills 800 to 1,200 miles away. No EAF mill in the region produces the full range of structural sections. No railcar or intermodal container manufacturer operates within 1,400 miles. Balou was designed to fill those specific gaps, in that specific geography, at this specific moment.
The convergence of Section 232 tariff pressure, Toyota's $3.6 billion San Antonio expansion, International Motors' consolidation of US truck assembly to San Antonio, the push to domestically source intermodal containers as Chinese supply faces growing restrictions, and the North American freight car replacement cycle — all arriving simultaneously — makes South Texas the highest-probability site for a vertically integrated steel, container, and railcar campus in the United States today.
Dual Class I Rail Access
Leading candidate sites in the South Texas region are simultaneously served by Union Pacific and BNSF, with unit train capability for 130+ cars. Dual Class I access is the single most critical infrastructure requirement for an EAF mill — and it eliminates nearly every alternative site.
Captive Customer Base in South Texas
Toyota TMMTX (6,100 employees, $8.3B campus) and International Motors (900,000 sq ft, the company's only US plant) both source all structural steel from out-of-state mills 800 to 1,200 miles away. A South Texas Balou location would deliver a significant regional supply advantage over those distant suppliers.
Opportunity Zone & Chapter 312 Abatement
Candidate sites in the target South Texas area sit within federally designated Opportunity Zones — enabling Qualified Opportunity Fund investors to defer and reduce capital gains taxes. Regional Chapter 312 property tax abatement frameworks (revised January 2026) further reduce project carrying cost.
Industrial Revenue Bond Eligibility
Industrial Development Corporations in the South Texas region are eligible to issue tax-exempt IRBs for Balou's manufacturing facility — saving an estimated $5 to $7 million per year in interest cost relative to taxable financing at the projected bond size.
Faster Permitting & EDC Conversations Underway
Candidate sites in the South Texas region offer considerably faster TCEQ EAF permitting timelines. Conversations have started with regional economic development organizations to explore site selection and financing support.
About the Company
American Infrastructure.
Texas Built.
Our Origin
Balou Car and Foundry Company was founded under the umbrella of Texas Public Railroad Corporation. That background created a direct, firsthand understanding of the freight railcar supply chain's structural weaknesses: long lead times, distance from manufacturers, and dependence on a handful of concentrated producers operating near full capacity.
The insight driving Balou is straightforward. South Texas is the fastest-growing heavy industrial region in the United States. It has no domestic structural steel producer for the full range of sections it consumes. It has no railcar manufacturer within 1,400 miles. And it has a federally designated Opportunity Zone site with dual Class I rail access already in place. Balou is the response to those three facts arriving simultaneously.
What We Are Building
A single-site, vertically integrated manufacturing campus on approximately 310 acres in the South Texas region — with final site selection currently underway. Phase 1 begins with one Electric Arc Furnace, one rolling mill line, Container Line B, Railcar Assembly Line A, and aggregate production. Phase 2 adds the second EAF and mill line, reaching 200,000 tons per year of steel capacity. Full output reaches 3,600 containers per year (Line B primary), 280 railcars per year (Line A), and 500,000 tons per year of CO₂-derived aggregate — the design output state of the campus.
The vertical integration is the core competitive advantage. Balou steel feeds Balou cars at internal transfer price — roughly $460 per ton versus $880 to $985 per ton on the external market — producing a per-railcar cost advantage of $4,200 to $5,800 versus any non-integrated competitor. That advantage is structural and permanent, not cyclical.
The Market Case
Three Converging Forces
01
Supply Chain Localization
Section 232 steel tariffs and reciprocal tariff actions have materially increased the cost of imported steel for every US manufacturer. Toyota Motor North America committed $10 billion in US manufacturing investment in direct response to tariff and supply chain pressure. The Bipartisan Infrastructure Law's $1.2 trillion in infrastructure spending drives structural steel demand for years ahead.
02
The Railcar Equipment Gap
The North American freight railcar fleet numbers 1.7 million cars with an average age of 20.4 years and rising. Replacement demand runs 40,000 to 80,000 cars per year consistently. The five major producers — Trinity, Greenbrier, GATX/ARI, FreightCar America, and National Steel Car — are all operating near capacity. South Texas has no dedicated railcar manufacturer.
03
South Texas Industrial Surge
Toyota announced a $3.6 billion expansion of its San Antonio campus in July 2026, adding 2,000 jobs and growing to 6,100 employees. International Motors consolidated all US Class 6-8 truck assembly to San Antonio after selling its Springfield, Ohio plant. The Eagle Ford Shale, Port of Corpus Christi, and I-35 corridor represent $10 billion-plus in capital that imports all of its structural steel today.
The Site
Target Site · South Texas Region
The Target Site
No final site has been selected. Balou is evaluating master-planned industrial sites across the South Texas region with dual Class I rail and truck-accessible logistics access. The proposed campus footprint is approximately 310 acres, encompassing scrap receiving, melt shop, rolling mill, railcar assembly, and aggregate production operations.
The park is simultaneously served by both Union Pacific and BNSF with full unit train capability for 130-plus cars, and on-site switching is provided by Gravity Rail. This dual Class I access is the single most important site requirement for an EAF-scale scrap steel operation — and it is exceedingly rare. No credible alternative site in the greater San Antonio region offers equivalent rail infrastructure.
South Texas Site Requirements
Candidate sites in the South Texas region offer considerably faster TCEQ New Source Review permitting timelines for EAF facilities. Conversations with regional EDCs have begun, and a Chapter 312 property tax abatement framework was revised in January 2026. Candidate sites sit within federally designated Opportunity Zone census tracts — enabling qualified investors to defer and reduce capital gains taxes through a Qualified Opportunity Fund structure.
The selected site must carry existing rail infrastructure to eliminate a significant portion of early civil construction cost and accelerate the timeline to first scrap steel delivery — a material factor in a project where the TCEQ permitting clock and equipment lead times are the binding constraints. Direct connection to the national Class I rail network is a non-negotiable site requirement.
Zone A — Steel Production
±150 Acres
EAF Melt Shop (280′ × 450′ × 100′H) · Railcar Twin Assembly Hall (200′ × 1,200′) · Aggregate Production Plant · Heavy Fabrication, Blast, Paint & QC · Utilities, Substation, Cooling Towers
Zone B — Rolling & Steel Products
±67 Acres
Rolling Mill (150′ × 1,500′) · Finished Steel Storage & Shipping · Billet Transfer and Hot Storage · Specialty Fabrication
Zone C — Scrap Receiving
±54 Acres
Scrap Receiving Yard · 4 Rail Receiving Tracks × 1,500 ft · Covered Scrap Storage (400′ × 600′) · Scrap Shredder & Processing Building · National Class I rail connection required
Competitive Position
The Balou Advantage vs. Distant Competitors
| Metric |
Balou Car & Foundry |
Next Nearest Competitor |
| Proximity to South Texas Manufacturers |
South Texas location · Significant regional lead time advantage |
800–1,200 miles · 3–6 week lead time |
| Import Tariff Exposure |
Zero — 100% domestic scrap-to-product |
Section 232 exposed on all imported steel |
| Carbon Footprint |
>75% lower lifecycle CO₂ vs. blast furnace |
Blast furnace or unknown origin steel |
| Railcar Steel Cost |
~$460/ton (internal transfer) |
$880–$985/ton market price |
| Per-Car Cost Advantage |
$4,200–$5,800 per car vs. non-integrated |
External market steel purchase required |
| Supply Chain Risk |
Eliminated — single-site, vertically integrated |
Multi-supplier, multi-modal, multi-state |
| Nearest Railcar Manufacturer |
Only dedicated producer in South Texas |
1,400+ miles — Trinity in TX is nearest |
Economic Impact
Quality Jobs for South Texas
Full-output workforce metrics — Year 5 of operations. Balou wages average 2.5× the Wilson County average of $34,200/year.
170
Direct Manufacturing Positions
at Full Output
$84,000
Average Annual Salary
2.5× South Texas county average
$14.3M
Annual Gross Payroll
Full Output Staffing
$35–43M
Total Economic Impact
2.5–3.0× Manufacturing Multiplier
Phase 1 ramp begins with 187 positions across Steel, Railcar & Container, and Aggregate divisions. At design output: 200,000 tons steel · 280 railcars · 3,600 containers · 500,000 tons aggregate. Conversations with regional community colleges and workforce development programs are underway.
Development Plan
Five-Year Build Schedule
Year 1
2026–27
Formation, Site & Long-Lead Orders
Site option agreement executed — South Texas region with dual Class I rail and truck access. TCEQ New Source Review air permit filed (12–24 month review — longest-lead regulatory item). Critical-path equipment orders placed: EAF furnaces (30-month lead), gas turbines (20-month lead), rolling mill stands (24–30 month lead). Wilson County IDC Industrial Revenue Bond process initiated. Conversations with state and county economic development partners underway. Capital committed: ~$83M.
Year 2
2027–28
Construction Phase 1
Civil mobilization, site grading, and internal road and rail track construction. Melt shop and twin assembly hall foundations and structural steel erected. Gas turbine delivery and installation — on-site power generation commissioned. Gas pipeline lateral construction complete. Project finance closes — IRBs and equity committed. Workforce recruitment begins through regional community college and apprenticeship partners. Cumulative capital: ~$400M.
Year 3
2028–29
First Production — Q4 2029
All major building construction complete. Rolling mill and paint shop commissioned. Campus achieves power independence via on-site gas turbines. Scrap receiving begins. EAF Heat #1: first steel produced. First container (Line B) assembled and CSC-certified. First railcar (Line A) assembled and FRA-certified. Aggregate production commences. Phase 1 production: 50,000 tons steel · 500 containers · 200 railcars · 100,000 tons aggregate. EBITDA: $10.6M.
Year 4
2029–30
Phase 2 Scale-Up
EAF #2 brought online — 125,000+ ton/year capacity. Container Line B ramps to 2,000 units/year. Railcar Line A advances to 280 cars/year. Rolling Mill Line 2 commissioned with full structural shapes capability. External steel market fully established — Toyota, International Motors, and Eagle Ford served. Aggregate plant ramps to 250,000 tons/year. Workforce scales to full Phase 2 complement. EBITDA: $37.0M.
Year 5
2030–31
Full Design Output
200,000 tons/year EAF structural steel. Container Line B: 3,600 units/year. Railcar Line A: 280 cars/year. Aggregate: 500,000 tons/year. On-site power: 228 MW via four gas turbines. 170 direct manufacturing positions. Total campus revenue: $295.4M. Company EBITDA: $64.6M (21.3% margin). Steel division EBITDA: $64.0M (30.0% margin). Free cash flow to equity: $30.6M/year.
Get in Touch
We Welcome Inquiries From
Banks, Investors, and Government
Balou Car and Foundry is in the pre-seed stage of formation. Conversations have begun with project finance lenders, institutional equity partners, strategic corporate investors, economic development organizations, and state and federal government contacts.