Winter 2011 Small Town South News
For real-time news on business, politics and economic development in the South go to www.RandleReport.com.
ALABAMA
Automotive Supplier Expanding in Alabama with 250 New Jobs
In the winter, North American Lighting announced it is investing $35 million at its plant in Muscle Shoals, Ala. The deal will create 250 new jobs in Northwest Alabama. North American Lighting is a wholly owned subsidiary of Koito Manufacturing Co. Ltd., headquartered in Tokyo. It is a manufacturer of automotive exterior lighting and supplies lighting to numerous automotive manufacturers in the country.
New ThyssenKrupp Alabama Plant Featured on CNBC
Germany-based ThyssenKrupp’s $5 billion plant in Calvert, Ala., near Mobile, got a moment of spotlight when CNBC visited the site in February. CNBC reporter Carl Quintanilla told the Mobile Press-Register “We are looking for local economies that are going to outperform the nation.” Carl found one.
Viper Powersports to Build Motorcycles in Auburn, Ala.
Construction began in the winter quarter on a new motorcycle factory in Auburn, Ala. Minnesota-based Viper Powersports signed a 10-year lease to occupy a building owned by the Auburn Industrial Development Board. The deal, which involves moving Viper's headquarters and motorcycle assembly to Auburn, will create 100 new jobs.
Vector Aerospace Adding Jobs in Rural Alabama
Vector Aerospace, a helicopter maintenance and repair company, is expanding in Andalusia, Ala. The company will double its space at the South Alabama Regional Airport industrial park and add 100 jobs.
Hundreds of Jobs Slated for Rural Alabama
Coskata Inc., an Illinois-based company, announced it will build an ethanol refinery in rural Greene County, Ala. The company secured a guarantee from the U.S. Department of Agriculture for a $250 million loan, moving plans for the facility closer to reality. Coskata plans to build the plant at the Crossroads of America Industrial Park in Boligee, Ala., creating 300 jobs.
Hyundai, Kia Supplier Expanding in Alabama
HYSCO America announced plans in January to invest $22 million in its Greenville, Ala. plant. The tier one and tier two supplier for Kia and Hyundai will add 174,000 square feet to its existing plant, which will house 40 more workers.
Alabama Ranks 3rd for Industrial Investment
According to Industrial Reports Inc., Alabama had the third-highest planned industrial spending in the country in December. The research firm reported nearly $2.7 billion in industrial projects were planned for the state as of December. Only California ($9.4 billion) and Texas ($7.4 billion) had more planned industrial investments.
ThyssenKrupp to Go Ahead with Stainless Steel Operations in South Alabama
German steelmaker ThyssenKrupp celebrated the grand opening of its Calvert, Ala. operations in late November and at the same time announced it will begin construction on the delayed stainless steel portion of the $5 billion steel plant. Construction jobs on the carbon steel facility that recently opened totaled 6,000 at one point. The new stainless steel melt shop will ensure that many of those construction jobs will be retained for about two more years, the time frame needed to complete the stainless portion of the plant.
ARKANSAS
Firestone Announces Arkansas Expansion
Firestone Building Products announced in the winter it will consolidate all production of its EPDM roofing membrane into its manufacturing facility in Prescott, Ark. The consolidation plan means significant investment, expansion and 100 new jobs for the company's Arkansas plant.
Tyson Adding Jobs in Rural Arkansas
Tyson Foods is expanding its chicken deboning plants in Berryville and Green Forest, Ark. The projects will create 250-300 new jobs.
Aviation Repair Technologies Adding 300 Jobs in Rural Arkansas
In January, Aviation Repair Technologies, an aircraft and component repair company, said that it is expanding its facility at the Arkansas Aeroplex in Blytheville, Ark. The company will invest $10 million and add 300 jobs, bringing employment to over 600. The company works on a variety of aircraft including the Boeing 737, ATR 72, Embraer Regional Jet, and the MD80.
FLORIDA
Forecast: Unemployment in Florida won't Drop to Six Percent until 2018
The State of Florida recently released a forecast showing that Florida's unemployment rate may not fall to six percent until 2018. To get there, the state says, Florida needs to add 162,700 jobs a year, or 13,600 jobs every month for the next seven years. Last year Florida added 8,400 jobs, which works out to 700 new jobs a month.
GEORGIA
Few Georgians Hired at Volkswagen’s Chattanooga Plant
Even though parts of North Georgia are in the Chattanooga metro area, very few workers have been hired from The Peach State at VW’s plant there. In fact, as of January, there were 1,200 production workers housed at the Chattanooga plant and none lived in North Georgia according to the Chattanooga Times Free Press. Volkswagen plans to employ 2,000 production workers at the plant this year.
Kia Hiring another 1,000 at West Georgia Plant
Kia Motors will hire another 1,000 workers at its West Point, Ga. plant, the Korean automaker announced recently. Kia currently employs 2,000 people at the plant. "By opening our third wave of hiring, we are building on that foundation and increasing our commitment to the U.S. and the local economy," Byung Mo Ahn, CEO of Kia Motors America, said in a statement. In addition to the 3,000 Kia plant workers, suppliers have added about 5,000 workers in West Georgia and East Alabama since the plant opened in 2008. For more information on the South's automotive industry, go to www.SouthernAutoCorridor.com.
Distillery to open in Haddock, Ga.
Georgia Distilling Company plans to begin operations in Haddock in early spring, opening in the former Cherokee Products plant, which closed 15 years ago and has been vacant since. The company plans to produce moonshine, vodka and gin immediately, with plans to expand into other product lines in the future, according to a news release.
KENTUCKY
Automotive Supplier to Expand into Second Kentucky Facility
In mid-March, Plastikon Industries Kentucky announced it will expand its Grayson County operations. The supplier will acquire a second facility with 90,000 square feet. The growth will result in 100 new jobs and a capital investment of $6.35 million.
Supplier Expanding in Small Town Kentucky
In March, Ventra Plastics Russellville announced it will expand its Logan County, Ky. facility. Established in 1992, the injection molding manufacturer will add 25 employees to its current employment base of 230 people and invest $3.4 million. The company will produce parts for Ford's Louisville plant, which is being retooled to build the next generation Ford Escape.
New Bi-State Economic Development Group Formed in Rural TN/KY
In the winter quarter the Ken-Tenn Regional Alliance was officially formed, joining economic development efforts in rural southwest Kentucky and northwest Tennessee. The alliance represents Obion, Weakley and Lake counties in Tennessee and Fulton and Hickman counties in Kentucky. The formation of the group comes in challenging times as Goodyear announced in February it will shutdown its plant in Union City, Tenn. later this year, affecting 1,900 workers.
Kentucky Aluminum Smelter Undergoing Expansion in Rural Kentucky
Rio Tinto Alcan is investment $37 million in its aluminum smelter in rural Sebree, Ky., a project that will help retain the jobs of nearly 500 employees. The plant, which is one of only a handful of aluminum smelters remaining in the U.S., is installing a new bake furnace that will enable the facility to operate at its current capacity for the next 15-20 years.
Auto Parts Supplier Expanding in Kentucky
NHK of America Suspension Components announced in February it will invest $20 million to build a 50,000-square-foot plant in Bowling Green, Ky. The Japanese automotive supplier will add over 100 jobs to its operations that have been in Bowling Green since 1986.
Automotive Supplier to Build Plant in Hopkinsville, Ky.
DENSO Air Systems, a global automotive parts supplier, announced in February it will locate a new manufacturing operation in Hopkinsville, Ky. The Japanese-owned company is planning a phased investment of more than $4.2 million and will initially create 80 new jobs. The new plant will produce aluminum pipes, tubes and hoses for the automotive industry.
Spanish Company Makes Kentucky Investment
North American Stainless, a subsidiary of Acerinox, S.A., which is headquartered in Madrid, Spain, announced in the winter quarter it plans to invest $10 million for increased peeled bar production plus $20 million for additional equipment upgrades at its Ghent, Ky. facility. The expansion, which is the company's ninth since it began operations in Kentucky in 1990, will also add 10 new jobs at the plant.
AK Steel Closing Rural Kentucky Coke Plant
Ohio-based AK Steel announced it will permanently close its Ashland, Ky. coke plant by the second quarter of this year. The plant produces the blast furnace fuel for the company's iron and steel facility in Ashland. According to the company, the closure is due to increased maintenance needs and tighter environmental rules that make it no longer cost-effective to produce coke there. The closure will eliminate about 260 jobs.
Kentucky Gov. Steve Beshear Announces Launch of Kentucky Small Business Investment Credit Program
The Randle Report reported in December that Kentucky will start accepting applications in January for its Kentucky Small Business Investment Credit program. The KSBIC program is designed to spur job creation by providing a nonrefundable state income tax credit to small businesses. The program provides state income tax credits ranging from $3,500 to $25,000 per eligible small business that create, fills and maintains one or more new, eligible jobs and invests at least $5,000 in qualifying equipment or technology in Kentucky.
LOUISIANA
Nucor Breaks Ground on $3.4 Billion Louisiana Steel and Iron Plant
The first phase of Charlotte-based Nucor's $3.4 billion steel and iron plant broke ground in March. The facility will be one of the largest industrial projects in Louisiana history and could result in more than 1,250 new direct jobs averaging $75,000 a year. Phase I of the project, a 2.5 million tons-per-year iron-making facility, will use direct reduction technology to convert natural gas and iron ore pellets into high-quality DRE used by Nucor's steel mills. The iron that is produced is used, along with recycled scrap, to make steel products such as sheet, plate and bar quality steel.
Bradken Announces Major Expansion in Amite, La.
Bradken Engineered Products announced in February it is expanding its foundry in Amite, La. to the tune of $18.1 million. The deal retains 179 jobs and creates 171 new jobs. The expansion will enable Bradken to increase its capabilities to produce customized steel cast products.
Louisiana Wins Magazine's State of the Year Honor
Louisiana, which has been recognized by Southern Business & Development as "State of the Year" in 2007 and "Co-State of the Year" with Tennessee in 2009 and 2010, won Business Facilities' 2010 "State of the Year" Award. Runners up included Texas, Tennessee, Utah and South Carolina.
Longest Cable-Stayed Bridge in Western Hemisphere to Open Soon in Rural Louisiana
Construction on the longest cable-stayed bridge in the Western Hemisphere reached a milestone in January as the spans from both sides of the Mississippi River were connected. The John James Audubon Bridge will connect New Roads, La. in Point Coupee Parish and St. Francisville, La. in West Feliciana Parish. The bridge, when completed later this year, will enable drivers headed south of Natchez, Miss. to be able to cross the Mississippi River before entering Baton Rouge, La.
MISSISSIPPI
Automotive Supplier Hiring 600 in Rural Mississippi
Diversity Vuteq, a supplier for the Toyota plant in northeast Mississippi that will open later this year, had a job fair in Tupelo in March. The company said it will hire 600 people for its new plant in New Albany, Miss. The plant will produce plastic component parts for Toyota, which is assembling the Corolla model when its Blue Springs, Miss. plant opens later this year.
Severstal Expanding in Lowndes County, Miss.
Steel manufacturer Severstal is hiring 100 new production workers to staff the $500 million expansion of its plant in Lowndes County, Miss. Two additional steel processors, New Process Steel and Mississippi Steel Processing are also expanding on the Severstal campus that is located just outside of Columbus, Miss.
Small Town Mississippi Lands $500 Million Solar Plant
Gov. Haley Barbour announced on January 4 that California-based Stion, a venture-backed manufacturer of high-efficiency, low-cost thin film solar panels, will locate a 100-megawatt solar panel production facility in Hattiesburg, Miss. The $500 million deal is expected to generate 1,000 new jobs over six years. Under the agreement, Mississippi will provide $75 million in loan assistance to the company through the Mississippi Industry Incentive Financing Revolving Loan Fund, pending legislative approval. The start-up operation will set up shop in the former Sunbeam building in Hattiesburg.
Toyota hires more in Rural Mississippi
Toyota is ramping up hiring as it prepares to open its long-delayed plant in Blue Springs, Miss. later this year. The Japanese automaker is adding 82 employees in January. The new assembly plant is expected to open in the fall of this year and will produce the Corolla model.
NORTH CAROLINA
Lydall Hiring 170 in Rural N.C.
Lydall, a manufacturer of thermal/acoustical products for the automotive industry, is expanding its manufacturing facility in Hamptonville, N.C. and will open a new manufacturing and distribution facility in Yadkinville. The $18.5 million deal, announced in March, will create 170 new jobs.
United Furniture Creating 200 New Jobs in N.C.
United Furniture is expanding its Lexington, N.C. plant and the project will create 200 new jobs. The company, which makes a variety of furniture products including sofas, sectionals and recliners, employs more than 2,000 at seven plants in Mississippi and North Carolina.
Manufacturer Investing $18.5M in Rural North Carolina
Hinge-maker Blum Inc. is investing $18.5 million in equipment upgrades at its plant in Lincoln County, N.C. The deal will create eight jobs.
Auto Parts Manufacturer Expanding in Small Town N.C.
Gates Corp. announced in the winter quarter it will add 58 jobs at its Ashe County, N.C. facility. The plant, which produces automotive and industrial belts, already houses 265 workers.
Automotive Supplier Eaton Corp. Expanding in Rural N.C.
Eaton Corp., which has operated in rural Roxboro, N.C. since 1965, is investing $23.3 million to expand its plant there. The automotive parts supplier operates 12 plants in North Carolina and employs 3,400 in the Tar Heel State. The expansion will create 120 jobs.
QVC Investing $71M in Rural N.C.
In February, multimedia retailer QVC announced it is investing $71 million to expand its distribution facility in Edgecombe County, N.C. QVC, which broadcasts live in the U.S. 24 hours a day from its studio in Pennsylvania to more than 195 million cable and satellite subscribers worldwide, will add 200 workers to its distribution center in Rocky Mount, N.C.
California Furniture Maker to Hire 200 in Hickory, N.C.
Rancho Dominguez, Calif.-based Fairmont Designs, which makes furniture for the home and hospitality industry, has purchased the former Thomas Furniture facility in Hickory, N.C. The deal is expected to create 200 new jobs.
Lowe's Creating 275 Rural North Carolina Call Center Jobs
Charlotte-based Lowe's is adding 275 workers to its call center in rural Wilkesboro, N.C. The center has grown to more than 700 employees from 350 a year ago. The February announcement means the center's employment will be near 1,000.
Freightliner Bringing Back 628 N.C. Workers
Daimler Trucks North America, the parent company of Freightliner trucks, is recalling 628 workers to its plant in Gaston County, N.C. Of those, 474 employees will be added to the company's assembly plant in Mount Holly, N.C. A Freightliner parts plant in Gastonia is adding another 154 jobs.
Carolinas Settle Water War
A cease fire was declared in the fall quarter between South Carolina and North Carolina in their latest water war that began in 2007 when The Palmetto State sued to prohibit North Carolina from transferring more than its fair share of water out of the Catawba River. In November, representatives from each state’s attorney general’s office provided a summary of the settlement to members of the Catawba-Wateree River Basin Advisory Commission, who unanimously approved the proposal.
Wipro Adds to North Carolina’s Data Center Deal List
Joining similar data center projects from Apple, Google and Facebook, Wipro announced in the fall quarter it will open a data center in western North Carolina. Wipro is owned by a Bangalore, India-based conglomerate that is known as the Microsoft of India. The $75 million data center will locate in the former Chris-Craft boat factory in Kings Mountain, N.C.
OKLAHOMA
Google Resumes Work on Oklahoma Data Center
In January, Google resumed work on a major data center project at the MidAmerica Industrial Park in Pryor Creek, Okla. The $600 million Oklahoma project at MidAmerica was originally scheduled for completion in 2009 but was delayed due to the slowing economy. It is now expected to be operational by the end of 2011.
SOUTH CAROLINA
Boysen USA Expanding in S.C.
Auto parts supplier Boysen USA announced in March it will invest $6 million at its plant in Gaffney, S.C. The company manufactures exhaust systems. The deal will create 15 new jobs.
Power Tool Company to Establish New Operations in S.C.
Delta Power Equipment, a maker of power tools, will establish new operations in Anderson County, S.C. The company will invest more than $3.6 million and expects to generate 40 new jobs.
Building Material Manufacturer to Open Plant in Rural S.C.
Carolina AAC will open a new facility in Marlboro County, S.C., the company reported in the winter quarter. It will manufacture energy efficient building material, specifically, Autoclaved Aerated Concrete, a sustainable, fire resistant and environmentally-friendly material that provides excellent insulation. The $16 million investment in rural Marlboro will create about 50 jobs.
Au'Some Candies Announces New Facility in Sumter, S.C.
Hong-Kong-based Au'Some Candies announced in the winter quarter it will establish its new candy production facility in Sumter County, S.C. The Sumter facility will be the company's first North American manufacturing site. The $6 million investment is expected to generate 120 new jobs.
Carolinas Settle Water War
A cease fire was declared in the fall quarter between South Carolina and North Carolina in their latest water war that began in 2007 when The Palmetto State sued to prohibit North Carolina from transferring more than its fair share of water out of the Catawba River. In November, representatives from each state’s attorney general’s office provided a summary of the settlement to members of the Catawba-Wateree River Basin Advisory Commission, who unanimously approved the proposal.
TENNESSEE
Japanese Auto Supplier to Open New Plant in Manchester, Tenn.
VIAM Manufacturing is investing $32 million in a new plant in Manchester, Tenn. that will recycle plastic bottles into carpet fiber that will be used in automobile manufacturing applications. The project will create 70 new jobs.
Toyota Invests in its Bodine Aluminum Plant in Jackson, Tenn.
Toyota announced in March that it will invest $2.1 million in its Bodine Aluminum plant in Jackson, Tenn. The project will create 10 new jobs. The Bodine plant produces transmission cases and housings for Toyota's engine plant in West Virginia.
New Bi-State Economic Development Group Formed in Rural TN/KY
In the winter quarter the Ken-Tenn Regional Alliance was officially formed, joining economic development efforts in rural southwest Kentucky and northwest Tennessee. The alliance represents Obion, Weakley and Lake counties in Tennessee and Fulton and Hickman counties in Kentucky. The formation of the group comes in challenging times as Goodyear announced in February it will shutdown its plant in Union City, Tenn. later this year, affecting 1,900 workers.
Explosives Company to Build Plant in Northeast Tennessee
Austin Powder, an Ohio-based explosives company, announced Feb. 22 it will invest $110 million in a new facility in Greene County, Tenn. The plant will produce liquid ammonium nitrate, a raw material used in the production of blasting agents used in mining and construction. The deal will create 80 new jobs.
New Solar Plant to Create 400 Jobs in Tennessee
Shoals Technologies Group announced in February it will invest $10.5 million in a solar energy components facility in Portland, Tenn. The company was originally an automotive parts supplier but now builds solar components and exports them to India and China. The new facility will house 400 workers.
Largest Solar Plant in Tennessee Opens for Business
Tennessee Gov. Bill Haslam joined TVA CEO Tom Kilgore and officials from Meridian Development Partners, owners of the American Drive Business Center, at the dedication of a solar installation in Jackson, Tenn. in the winter quarter. The solar array located at the Business Center is a one megawatt solar power system and is the largest solar project in the seven-state TVA region.
Few Georgians Hired at Volkswagen’s Chattanooga Plant
Even though parts of North Georgia are in the Chattanooga metro area, very few workers have been hired from The Peach State at VW’s plant there. In fact, as of January, there were 1,200 production workers housed at the Chattanooga plant and none lived in North Georgia according to the Chattanooga Times Free Press. Volkswagen plans to employ 2,000 production workers at the plant this year.
Japanese Automotive Supplier Announces $30M Expansion in East Tennessee
Koyo Corp. USA is expanding its manufacturing facility in Washington County, Tenn. Koyo is a Tier 1 and Tier 2 supplier to Toyota, Honda, Ford, GM, Daimler and BMW. The company is investing $30 million and adding 125 employees in the deal.
TEXAS
Study: Texas isn't Stealing Jobs from California
A study conducted by UCLA's Anderson School of Business released in March focuses on the Texas-California job rivalry and how many lost jobs in California went to Texas. In the report, UCLA forecast senior economist Jerry Nickelsburg wrote that "Texas, the state with the most rapid population growth over the last decade, is held up as the model for job diversion from the Golden State." Then he wrote, "California shouldn't worry too much about losing jobs to Texas, but it should worry that companies can't create jobs quickly enough because of regulations." Texas is known throughout economic development circles as a state that has some of the fastest permitting in the country to get a company up and running.
Texas Top Inbound State for Sixth Straight Year
Allied Van Lines' 43rd Annual Magnet States Report released in the winter quarter showed that for the sixth year in a row, Texas eclipsed every other U.S. state in in-migration. Colorado came in second with Florida, South Carolina and Arizona rounding out the top five.
Analyst Meredith Whitney Ranks Texas Best in Economic Health
Meredith Whitney, a noted analyst who accurately predicted the national banking crisis, recently listed Texas as the national leader in state financial health in a report issued about the perilous condition of most state governments. Of the 15 largest states, only Texas and Virginia earned overall positive rankings in the report. Whitney said recently in an interview on CNBC, "The best state is actually Texas, by a mile. They've been a very conservative state ... a small government state. Low taxes, their pension funds are fully funded. Housing is not an issue. They have great population trends. Great employment," Whitney said.
VIRGINIA
Canatal Steel Creating 40 Jobs in Botetourt Co., Va.
Canatal Steel USA announced in January that it has opened its first operation in Botecourt County, near Roanoke. The company is investing more than $1 million in equipment and is expected to create 40 new jobs.
WEST VIRGINIA
Toyota Expanding Production in West Virginia
Toyota announced in late February it is investing $64 million to expand production of six-speed automatic transmissions at its plant in Buffalo, W.Va. The Japanese automaker's 2-million-square-foot plant in rural West Virginia currently employs 1,100 people. The expansion will add 40 jobs.
Macy's to Build Fulfillment Center in Small Town W.Va.
Retail giant Macy's Inc. plans to build a new 1.3 million-square-foot fulfillment center in Martinsburg, W.Va. The center will support Macy's online business. When fully operational, the new facility is expected to create 1,200 full and part-time jobs and 700 seasonal jobs. Construction will begin in the spring and the company expects to begin operations in April 2012.
DuPont Hiring 150 Workers in West Virginia
DuPont is hiring 150 workers over the next few years at its plant in Belle, W.Va. The hires will replace workers who are expected to retire from working at the plant. The new workers will be operators, engineers and pipe fitters.
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