American Cast Iron Pipe Co. Secures $10 Million in Tax Credit Financing for Birmingham Plant Modernization

BIRMINGHAM, Ala. — UB Community Development announced Tuesday it has directed $10 million in New Markets Tax Credit (NMTC) financing to support a major modernization project at the American Cast Iron Pipe Company (ACIPCO) manufacturing facility in Birmingham.

The capital infusion, finalized this week, is designated for upgrading critical furnace equipment at the historic industrial plant. According to the announcement on June 25, 2026, the investment will allow ACIPCO, a cornerstone of Birmingham's manufacturing sector for over a century, to enhance operational efficiency, improve environmental performance, and maintain its competitive position in the global market.

ACIPCO is a major manufacturer of ductile iron pipe, fire hydrants, and valves for the waterworks industry, as well as steel pipe for the oil and gas sectors. The Birmingham facility is central to its operations, and the planned furnace upgrades represent a significant capital investment aimed at ensuring the long-term viability of the plant and its workforce.

The financing was provided by UB Community Development (UBCD), a community development partner of United Bank. UBCD operates as a certified Community Development Entity (CDE) under a program administered by the U.S. Department of the Treasury. CDEs are tasked with channeling private sector investment into low-income communities that have historically faced barriers to accessing capital.

The New Markets Tax Credit program was established by Congress in 2000 to stimulate economic growth and job creation in these underserved areas. It works by providing a federal tax credit to investors who make equity investments in certified CDEs. The CDEs, in turn, use the proceeds from these investments to offer loans and other financing with flexible, favorable terms to qualifying businesses located in low-income census tracts.

This structure effectively bridges financing gaps for impactful projects that might not qualify for conventional loans or that require more attractive terms to be financially feasible. The goal is to spur revitalization and development in communities that need it most. For a project to qualify, it must be located within a qualifying census tract and demonstrate a clear community benefit, such as job creation or retention, or the provision of essential goods and services.

In the case of ACIPCO, the investment supports a legacy employer in an industrial area of Birmingham. The project is expected to help retain hundreds of skilled manufacturing jobs at the facility by equipping it with modern technology necessary to compete in a demanding industry. Without such upgrades, legacy manufacturing plants often face the risk of declining productivity and eventual closure, which can have a devastating impact on local economies.

Executives from both organizations highlighted the collaborative nature of the financing. The arrangement allows ACIPCO to undertake essential capital improvements while leveraging a federal program designed to support exactly this type of industrial preservation and modernization. UBCD, for its part, fulfills its mission of deploying capital to generate positive economic and social returns in its service areas.

Deals like the one secured by ACIPCO highlight a crucial but often overlooked avenue for business growth. In our experience, many mid-sized company leaders assume that complex federal programs like New Markets Tax Credits are reserved exclusively for the largest corporations. They see the intricate application processes and compliance requirements and decide it's not worth the effort, leaving significant capital on the table. This is a missed opportunity. Securing this type of financing requires a deep understanding of eligibility criteria, financial structuring, and long-term compliance. It’s not something to be handled off the side of a desk. For businesses looking to fund major capital expenditures, expansions, or operational upgrades, exploring these specialized incentives is a core part of a sound financial strategy. Our team specializes in capital raising and investor strategy, guiding clients through this exact landscape. To see how these programs could benefit your company, contact C&S Finance Group LLC at csfinancegroup.com.

With financing now secured, ACIPCO is expected to move forward with the procurement and installation of the new furnace systems. The project timeline for completion has not been publicly disclosed, but its progress will be closely watched by regional economic developers as a key example of how public-private partnerships can be leveraged to fortify America's industrial base.