Recent Announcements
Good news from TVA Economic Development
TVA announces certification of two megasites
Gerdau AmeriSteel Announces Modernization and Expansion
Rich Products Breaks Ground on Tennessee Plant Expansion
Webasto Roof Systems selects Kentucky site
Bank of New York to build processing center in Nashville
TVA announces certification of two megasites
Aug. 19, 2004 – TVA has announced that two sites, located in Hopkinsville, Ky., and Columbus, Miss., have been certified by McCallum Sweeney Consulting of Greenville, S.C., as “megasites,” or large industrial properties suitable for major automotive manufacturing plants.
Working in partnership, TVA’s economic development staff, distributors of TVA power and economic development partners will market the sites to automotive manufacturers seeking to locate facilities in the Southeast.
TVA launched the megasites certification program in March in response to a growing need for large industrial properties appropriate for automotive manufacturing facilities. TVA has learned that several major manufacturers may locate additional automotive plants in the Southeast during the next decade.
Based on its expertise as a site selection consultant for the automotive industry, MSC was commissioned by TVA as an independent source to evaluate the submitted sites. MSC established certification criteria and a process to evaluate potential properties. All site applications were reviewed and site visits were conducted by the consultant in June and July.
“One of the fastest growing trends that we are seeing in the site location business is the demand for certified industrial sites because companies want sites that are ready to go and relatively risk free,” said MSC Senior Principal Ed McCallum. “Companies, especially in the automotive industry, are under tremendous market pressures to make siting decisions and start up facilities fairly quickly. With the megasites certification program, TVA has made it possible for sites with the necessary attributes in place and the due diligence completed to receive advanced certification.”
The Interstate 24 Megasite in Hopkinsville and the Lowndes County-Golden Triangle Megasite in Columbus meet all criteria required for certification, including size of at least 700 to 1,000 contiguous and developable acres, land availability, transportation access and labor capacity. The sites also possess unique features, such as ideal topography, a well-defined infrastructure development plan and direct access to major airports, rail and roadways.
More than 25 county, city and regional economic development organizations within TVA’s service territory submitted potential industrial sites for consideration.
The Columbus megasite
Submitted by the Columbus-Lowndes Development Link, the 1,500-acre Lowndes County-Golden Triangle Megasite is located west of Columbus. It is bounded on the west by the Golden Triangle Regional Airport, the south by Artesia Road/Kansas City Southern Mainline rail and to the east and north by Industrial Park Road.
The site is easily accessible from the cities of Columbus, West Point and Starkville and equidistant from I-55 and I-20.
The Hopkinsville megasite
Submitted by the Hopkinsville-Christian County Economic Development Council, the 2,100-acre Interstate 24 Megasite features immediate access to I-24 and rail, as well as the other criteria required for megasites, including ideal topography and appropriate demographics and geography needed for automotive-assembly operation.
Read a news release on the site certifications.
Gerdau AmeriSteel Announces Modernization and Expansion
Gerdau AmeriSteel will add an electricity substation and power line as well as a new warehouse to its 56-acre steel-mill site in Knoxville, Tenn.
A subsidiary of Brazil-based Gerdau S.A., Gerdau AmeriSteel recycles scrap metal from automobiles and supplies fabricated steel for construction on roads, bridges, sewers, and dams. The $11.7 million expansion will enable it to increase production by 10 percent, allowing the plant to operate at full capacity. The modernization will help stop interruptions of service that the plant causes in the neighborhood because of its huge use of power. Founded as Knoxville Iron Works in 1868, the company distributes to a region within 350 miles of Knoxville.
The expansion will help the company stay competitive. “We’ll be more efficient,” says Arlan Piepho, vice president and general manager of Gerdau AmeriSteel. “It’s an investment in the Knoxville mill, saying we’re going to stay here. It’s the confidence the home office has in the mill and the community.” About 300 jobs will be retained due to the decision to stay in Knoxville.
The company, the state, Knoxville Utilities Board, and TVA are sharing the cost of building the substation and power line. Without more than $3 million provided in local and state incentives, the mill would have had a hard time surviving at its present location, according to Mike Mueller, vice president of the company’s southern steel mills.
“When you have 40 to 50 percent of your industry that’s gone through bankruptcy in the last three years, and we continue to grow and prosper, it says that commitment and partnership is working well in the Tennessee Valley,” adds Phillip E. Casey, president and CEO of Gerdau AmeriSteel.
Rich Products Breaks Ground on Tennessee Plant Expansion
Rich Products of Buffalo, N.Y., has broken ground on a major expansion of its manufacturing facility in Arlington, Tenn.
The project will include expansion of the total plant square footage to 151,000 square feet and renovation of 78,000 square feet of existing space. In addition, a new120,000-square-foot frozen warehouse will be connected to the plant.
The expansion and renovation will enable the plant to manufacture, store, and distribute Rich’s full line of branded frozen nondairy topping and creamer products in addition to continuing production of private-label frozen whipped topping. New plant and warehouse jobs will total 100 to 130.
Rich’s officials cited the highly cooperative working relationship with local and state officials as a key accelerator of the project. “We’re very appreciative of the support and cooperation we have received from Mayor [Russell] Wiseman and the officials from Memphis, Shelby County, the state of Tennessee, and the Tennessee Valley Authority,” said William G. Gisel Jr., COO of Rich’s. “The spirit of partnership they have collectively extended has been a key factor in our decision to move forward with this investment in Arlington.” Rich’s acknowledged the support of TVA’s John Bradley, Senior Vice President of Economic Development, and Warren Harden, Economic Development Specialist.
The construction and future operation of the new frozen warehouse is a combined effort by Rich Products and AmeriCold Logistics, a provider of supply chain solutions for the consumer packaged goods industry. Rich Products will own the facility and AmeriCold will be responsible for systems management and staffing. The building will include state-of-the-art energy efficiency and security features such as card-only access to protect product integrity.
Webasto Roof Systems selects Kentucky site for new facility
Webasto Roof Systems, Inc., a Germany-based manufacturer of automotive roofing products, announced in April that it will construct a new manufacturing facility near Murray, Ky. The new plant, which will be located in the Murray-Calloway County Industrial Park, will employ about 150 people.
In announcing Webasto’s decision, Kentucky Governor Ernie Fletcher emphasized the importance of continued economic development in the state. Fletcher said that economic development in the commonwealth was crucial to the well being of all Kentuckians.
TVA Board Chairman Glenn L. McCullough, Jr., who was on hand for the announcement, said, “Webasto is bringing career opportunities to the people of Murray, which is why TVA is so pleased to be partnering with Murray-Calloway County Economic Development Corporation, West Kentucky Rural Electric Cooperative and the Commonwealth of Kentucky to make this historic day a reality.”
Webasto plans to construct a 105,000-square-foot facility next to Pulmo-Dose on U.S. 641 North in the industrial park. The company expects to reach full production by summer 2005.
Bank of New York to build processing center in Nashville
After a nationwide search, the Bank of New York Co. announced in April that it would locate a new processing center in the Nashville area. The center is expected to employ 100 people and be operational in September 2005.
The center is described as a backup operation, supporting processing needs of institutional and retail customers for the New York City-based bank. A new 160,000-square-foot facility, expected to begin construction soon, will house the processing operation. Nashville won the decision over other proposed sites, including one south of Rochester, New York, according to a bank spokesman.