Tecumseh Products Company announced a major expansion at their facility in Verona,¬†Mississippi.
The $10 million expansion project, fueled by increased demand for their air-conditioning and refrigeration products, will add production capacity for the company‚Äôs AE2 compressor for refrigerators used for commercial applications.
These energy-efficient compressors are currently being manufactured in Tecumseh plants in Brazil and France.
The A2 production line in Verona is expected to be operational by Oct 2013, and the company is also looking at expanding an existing condensing unit at the Verona plant.
Apart from compressors and the condensing unit, the Verona facility also serves as a distribution hub for the company‚Äôs North American operations.
Tecumseh anticipates it will need to create 150 new jobs over the next five years and retain 350 existing positions to handle the increased production requirements that will improve the quality and service of products provided to the company‚Äôs North American customers.
Apart from this Verona plant near Tupelo, the Ann Arbor,¬†Michigan-based Tecumseh Products Company also has another plant in Paris, MS that manufactures motors. Their other North American production facilities include one in London, Ontario, Canada and another one in Monterrey, Mexico.
Many of the company‚Äôs facilities outside North America were also in consideration for the expansion.
The project was secured by the Verona facility with the help of incentives and support provided by the Mississippi Development Authority (MDA), Lee County and¬†Tennessee¬†Valley Authority (TVA).
MDA provided incentives in the form of a $600,000 grant and a low-interest $4 million loan for infrastructure improvements, building modifications, and equipment relocation.
Lee County is offering tax abatements for property enhancements and equipment purchase. Details about incentives provided by TVA have not been disclosed.
Jim Connor, president and CEO of Tecumseh Products Company, said they were extremely pleased with the support they got. He said the Verona expansion would not have been possible without the state‚Äôs strong financial assistance.
MDA Executive Director Brent Christensen said they appreciated Tecumseh retaining 350 jobs at the Verona facility, and added that the new jobs they were creating was another sign that Mississippi‚Äôs economy was gaining momentum.
Governor Phil Bryant likewise noted that the company‚Äôs commitment serves as a testament for the dedicated workforce and supportive business environment in¬†Mississippi.