National New Markets Fund, an affiliate of SDS Capital Group, announced it has invested $20 million in New Markets Tax Credits to support furnace modernization at the American Cast Iron Pipe Company manufacturing plant in Birmingham, Alabama.
The financing will help support a $285 million improvement program designed to modernize American Cast Iron Pipe Company’s manufacturing operations, expand production capacity, reduce emissions, and support job growth in the surrounding community.
The project is expected to create 80 to 100 full-time jobs and retain another 1,775 positions. National New Markets Fund said the investment is intended to bring greater economic opportunity to nearby communities through high-quality and high-paying manufacturing jobs.
American Cast Iron Pipe Company, also known as ACIPCO, was founded in 1905 and has been employee-owned since 1924. The company is one of the largest U.S. manufacturers of ductile iron pipe, spiral-welded steel pipe, fire hydrants and valves for the waterworks industry, and high-frequency-welded steel pipe for the energy industry.
Through the improvement program, ACIPCO will replace an older single cupola furnace with four electric coreless induction furnaces. The upgrade is expected to increase melting capacity by 25% while reducing on-site greenhouse gas emissions by at least 50%, equal to about 105,478 metric tons.
The New Markets Tax Credit program was created in 2000 to support economic development in economically distressed communities. Through the program, groups such as National New Markets Fund receive tax credit allocations, sell those credits to institutional investors, and use the proceeds to finance high-impact projects.
According to the announcement, the NMTC program has generated $76 billion in qualified equity investment and $143 billion in total development financing for more than 8,900 businesses across urban, suburban, and rural low-income communities. The program has also supported the creation of 1.2 million jobs nationwide.
The ACIPCO plant is located in North Birmingham and has long served as an economic anchor for the region. National New Markets Fund’s investment will help build on that role by advancing workforce development, manufacturing capacity, and economic opportunity for families in the area.
National New Markets Fund was launched by SDS Capital Group in 2005 to support economic development in distressed census tracts across the South and Great Lakes regions. Since 2013, NNMF has focused its investment strategy exclusively on U.S.-based manufacturing, food processing, and agricultural-focused businesses.
The fund’s capital is used for plant expansions, equipment, machinery, and working capital, with a mission of helping companies remain in the United States and continue creating high-quality jobs in distressed communities.
In December 2025, National New Markets Fund received a $95 million New Markets Tax Credit allocation, its 15th and largest award from the U.S. Treasury’s Community Development Financial Institutions Fund. The award was part of the CDFI Fund’s $10 billion 2024–2025 round, the largest allocation in the program’s history.
Since its inception, National New Markets Fund has invested $800.5 million across 53 projects, creating and preserving more than 15,300 jobs in census tracts with an average poverty rate of 34%.
KEY QUOTES:
“NNMF focuses its NMTC investments on manufacturing companies that – through their growth – uplift communities navigating severe economic hurdles. Our financial backing of this tremendous manufacturer – American Cast Iron Pipe Company – secures and creates quality employment, offering lasting stability to the generations of families who have relied on it as their economic anchor.”
Deborah La Franchi, Founder and CEO of SDS Capital Group and President of National New Markets Fund
“The New Markets Tax Credits, made possible through NNMF, will help us further modernize our manufacturing operations. Public-private partnerships like this one support American manufacturing, allowing our companies to expand capacity to meet customers’ needs, support employment opportunities and create positive change in our communities.”
J. Michael O’Brien, President and CEO of American Cast Iron Pipe Company
