Mississippi

Natron Wood Products to Create 200 Jobs in Louisville, MS

Jasper, Oregon-based Natron Wood Products announced plans to open a new facility for manufacturing specialty plywood products in Louisville, Mississippi.

Natron Wood Products announcement

Natron Wood Products announcement (photo – Louisville Mayor’s Office)

The project will require Natron to invest $10 million and will lead to the creation of more than 200 new jobs.

Natron’s new operations will be housed in the 265,000-square-foot former Georgia Pacific plywood manufacturing facility, which is in a publicly owned building.

Natron’s 200 jobs are more than thrice the 60 jobs that were lost when the Atlanta, GA-based Georgia-Pacific LLC shut down its operations in Louisville in 2009.

The plywood panels Natron will make in their new Louisville facility are primarily used in the construction sector, although they will also be making sanded and marine plywood products.

Mississippi Gov. Phil Bryant, Louisville Mayor Will Hill and other state and local officials were on hand for the announcement, along with Richard McDougal, owner of Natron Wood Products.

McDougal said they were excited to be in a business-friendly state such as Mississippi, and that they are enjoying building relationships with Mayor Hill and others in Louisville. McDougal added that they were looking forward to expanding their operations in Louisville, and were committed towards being a positive partner in the community for years to come.

Gov. Bryant said he appreciated Natron for selecting Louisville for its new facility and creating so many jobs for workers in the area.

The Mississippi Development Authority (MDA) is providing assistance to Natron using Community Development Block Grant (CDBG) funds. The company is also getting assistance for building renovations from the Appalachian Regional Commission.

Brent Christensen, executive director of the MDA, said that they were grateful to Natron for revitalizing the Georgia Pacific facility. He also thanked Winston County and the City of Louisville for their support in helping the MDA secure the project.

Natron has been doing business in Oregon for more than two decades under the name of Jasper Wood Products.

Mississippi Considers $130M Incentives To Secure Yokohama Tire Plant

The Yokohama Tire Corporation, which manufactures and markets Tokyo, Japan-based Yokohama Rubber Co. Ltd’s tires in North America, has been scouting sites for a second tire manufacturing plant in North America.

Yokohama ADVAN tires

Yokohama ADVAN tires (photo – Morio/wikipedia)

They seem to have settled on Clay County, Mississippi as their final choice, because Mississippi lawmakers have been called for a special session to approve $130 million in incentives for the company.

The initial phase of the plant would require a $300 million investment by the company to build a facility for manufacturing large tires, and would create 500 new jobs.

The company has agreed to create 500 new jobs with minimum annual wages of $35,000. The actual wages offered could be higher.

Yokohama has plans to expand further in phases for a total investment of $1.2 billion that would create a total of 2,000 jobs. These subsequent expansions may include production facilities for passenger car tires.

The Mississippi Development Authority (MDA), Gov. Phil Bryant and other state officials have been working for months on this project, identified until now only under the codename of Project Triathlon.

The company’s site selection process began with a list of 3,000 possible counties across the U.S. There were also reports of the company setting up a plant in Mexico after they created a Mexican subsidiary, but those reports were later denied by YTC.

Clay County, Mississippi ended up as one of three locations in the final short-list, along with sites in two other states.

Yokohama has an existing manufacturing plant in Salem, Virginia which already produces 70 percent of the company’s passenger vehicle tires that are sold in the U.S. They also have tire distribution centers in Auburn, Georgia and Groveport, Ohio.

Mississippi lawmakers will be asked today to approve $130 million in funding through bonds to secure the project, out of which $70 million is for this first phase.

The money would be used to purchase land ($9.5 million) for the plant, infrastructure improvements ($48 million), and workforce training ($11.75 million).

They’re also looking at a huge amount in state income tax exemptions, sales tax exemptions for equipment purchase, and local property tax exemptions.

The remaining $60 million in bonds comes into play only if the company sticks to its expansion plans, with $20 million released for each subsequent $300 million expansion with 500 additional hires.

BankcorpSouth Creates $500M Grow Mississippi Fund

BancorpSouth, Inc. (NYSE: BXS) announced that they are creating a $500 million loan pool called “Grow Mississippi” to help the state solicit business expansions and support job creation projects.

BancorpSouth Mississippi

BancorpSouth Mississippi (photo – BancorpSouth/wikipedia)

The announcement was made at a joint event by BancorpSouth CEO Dan Rollins and Mississippi Governor Phil Bryant.

Rollins said the $500 million was allocated specifically to create a fund that will provide loans to entrepreneurs and businesses that select Mississippi as their location, and for existing businesses in the state to fund their expansion plans.

He said they could allocate more money for the loan fund if required, depending on the success of the initial allocation in identifying suitable candidates.

Gov. Bryant applauded BancorpSouth’s leadership in providing businesses with access to capital, which the Governor said was “a critical element in positioning Mississippi as the top spot for economic development.”

BancorpSouth will be working with the Mississippi Development Authority (MDA) and the bank’s network of local community lenders to select small businesses, entrepreneurs and corporations for funding from the Grow Mississippi loan pool.

Brent Christensen, executive director of MDA, said in a statement that the MDA will be offering full support for the initiative, and will provide whatever resources are required to ensure its success.

Aubrey Patterson, chairman of the BancorpSouth, Inc. Board said the objective of the Grow Mississippi loan pool was not just about funding startups and expansions, but also to “show the confidence BancorpSouth has in Mississippi as an ideal market place for businesses to grow and prosper.”

Patterson is a former chairman of the Mississippi Partnership for Economic Development and the Mississippi Economic Council, and is an ardent supporter of the state’s economic development programs.

The bank will structure loans in such a way as to be compliant with their normal loan policies, while allowing applicants to leverage it to take advantage of local and state economic development project funding programs and incentives, along with SBA and other federal loan programs.

Gov. Bryant added that attracting good jobs to Mississippi called for teamwork. “We look forward to working with additional partners who want to show the world that ‘Mississippi Works’ and is open for business,” added Gov. Bryant.

Tupelo, Mississippi-based BancorpSouth, Inc. has $13.4 billion in assets and more than 4,400 employees.

Helen of Troy Announces $37M Distribution Center in Olive Branch, MS

Consumer products company Helen of Troy (NASDAQ, NM: HELE) announced that they are constructing a 1.3 million square foot distribution facility in Olive Branch, Mississippi.

Helen of Troy

Helen of Troy (photo – governorbryant.com)

The project represents a company investment of $37 million and will create more than 300 new jobs.

“We are very excited to start this project and are looking forward to the day when we can move into this new distribution center. With the addition of this new 1.3 million-square-foot distribution center, Helen of Troy will have a total of 2.5 million square feet of owned and operated distribution capacity in DeSoto County, Mississippi,” said Helen of Troy Chairman, CEO and president Gerald J. Rubin.

The facility, the company’s second in the state, is expected to be complete by December 2013. Helen of Troy also operates a 1.2 million square foot distribution facility in Southaven, Miss.

“This is a significant commitment for Helen of Troy and we will continue to benefit from the skilled workforce, logistics infrastructure and geographic attractiveness of DeSoto County,” added Rubin. “With interest rates at record lows, it is a great time to make this type of investment in the future of Helen of Troy.”

The Mississippi Development Authority (MDA) provided assistance for site preparation and relocation needs related to the project through the Mississippi Industry Incentive Financing Revolving Fund.

“It is always exciting to see one of our existing businesses strengthen its roots in Mississippi, and I am proud MDA was able to provide assistance for Helen of Troy’s new distribution facility,” said MDA executive director Brent Christensen. “I thank the mayor and the board of aldermen in Olive Branch and the DeSoto County Board of Supervisors for working with us to make this project possible.”

MDA also provided assistance for infrastructure improvements through the Development Infrastructure Program, as well as job training assistance. The City of Olive Branch and DeSoto County additionally provided assistance in support of the project.

“I am grateful to Helen of Troy for expanding its presence in Mississippi by constructing this new distribution facility. The company’s investment and the jobs it will create will have a significant impact on both the DeSoto County economy and the state as whole,” said Miss. Gov. Phil Bryant.

Helen of Troy’s operational headquarters is in El Paso, Texas, and the company has nearly 1,450 employees overall.

ED Incentives at Heart of GreenTech Controversy

This is an ongoing saga, so only time will tell if Virginia or Mississippi made the right decision with regards to GreenTech Automotive. At the moment, though, the Virginia Economic Development Partnership (VEDP) is taking some flak for letting a Chinese company based in McLean, VA open their first U.S. automobile plant for making tiny and cheap electric cars in Tunica County, MS.

MyCar by GreenTech Automotive

MyCar by GreenTech Automotive (photo – wmgta.com)

GreenTech approached the VEDP in Aug 2009 and asked for assistance in opening a plant in Virginia. The economic development project was codenamed Project GCG (for go clean green).

What happened next is disputed, but the VEDP says GreenTech did not provide enough documentation, and was a startup where the principals had no previous background in automotive manufacturing, no demonstration models, no EPA permits, and so on – a lot of questions raised about the project’s viability and financing.

All this has come to light after an FOIA request by the AP produced 600 pages of email and correspondence on the project. For their part, GreenTech says VEDP made it clear in meetings that they were not interested in offering incentives for this project.

Whatever the cause, the net result was that GreenTech announced in Oct 2009 that they were opening a 300,000 sq ft automobile plant in Robinsonville, MS near the casinos of Tunica County.

Mississippi has reportedly offered them millions in tax incentives, apart from a $3 million loan from the Mississippi Development Authority for buying the land and getting started with the plant.

GreenTech has already opened a temporary plant in Horn Lake, MS, which they intend to use until such time as the Tunica plant is operational. They intend to hire 426 workers, and ramp up the workforce to 1,500 when the Tunica plant opens next year.

They announced Domino’s Pizza as their first domestic customer for their “MyCar.” The company also announced an agreement with Danish electric car distributor Greenabout A/S, who has reportedly agreed to buy all their production up to 2014.

To make matters worse for the VEDP, one of their staffers mailed an offensive email to colleagues that insulted GreenTech’s chief executive Charles Wang. This was when GreenTech unveiled prototypes of the MyCar at an event in Mississippi. A couple of weeks back, VEDP president and chief executive Martin J. Briley wrote to Wang to apologize for what he called his staff’s silly and sophomoric behavior.

All this might seem bad for the VEDP, and no doubt some of it was not properly handled. However, everything hinges on whether GreenTech can actually pull it off and start commercial production of the vehicle in Mississippi. If they are unable to get off the ground, Virginia will in retrospect have made a good decision.

USDA Announces Rural Economic Development Funding for Six States

Agriculture Secretary Tom Vilsack has announced yet another round of grants and loans to help spur economic development and create or save jobs in six states.

USDA Rural Development

USDA Rural Development (photo – usda.gov)

This time, the U.S. department of Agriculture (USDA) is handing out $3.6 million under the Rural Economic Development Loan and Grant program (REDLG) to recipients in Iowa, Kansas, Mississippi, North Carolina, Oklahoma and South Dakota.

These are zero-interest loans provided by the USDA to local utilities which in turn are supposed to pass the funds through to local businesses for projects to create and retain employment in rural areas.

The two biggest recipients are the Brunswick Electric Membership Corporation in North Carolina and the South Mississippi Electric Power Association in Mississippi. Brunswick is getting a million dollars to fund the Rural Consumer Services Corporation, which will then utilize the funds as working capital to complete energy efficiency improvements. The project will create nine new jobs and save three existing ones.

The South Mississippi Electric Power Association is also getting a million, which they will use to purchase machinery and equipment and finance the construction of an industrial peanut-buying facility in Clarksdale.

The $800,000 being provided to two Iowa companies are set to create 76 jobs. The Hawkeye Tri-County Electric Cooperative gets a $500,000 loan to help fund a 13,000-head-per-year beef slaughtering plant in Lime Springs which will create 41 new jobs. The Laurens Municipal Light & Power Plant gets a $300,000 grant, to which they will add $60,000 to create a $360,000 revolving loan fund. The first loan goes to the Laurens Care Center for renovations that will save 35 jobs.

The Ark Valley Electric Cooperative Association, Inc. in Reno, Kansas is going to the mat to purchase and save the only grocery store in Haven, KS and the nine associated jobs. They are getting a $160,000 REDLG loan.

The Caddo Electric Cooperative, Inc. in Oklahoma is getting a $400,000 loan to help Kimball and Company, LLC expand a veterinary clinic and create or save 18 jobs.

The Dakota Energy Cooperative, Inc. in South Dakota is getting a $300,000 grant to build a commercial building in Huron, SD. This building is a project for the Greater Huron Development Corp., which estimates that the project will enable retention of 10 jobs.

The USDA Rural Development division has an active portfolio of more than $172 billion in loans and loan guarantees. Their programs for the current fiscal year alone amount to $20 billion in loans, loan guarantees and grants.

More information about the USDA Rural development loans and grants can be found on the usda.gov website.

Drone Center To Be Established in Camp Shelby, Mississippi

http://fortwiki.com/Camp_Shelby

The large military training site called Camp Shelby in Mississippi will be adding a $48 million dollar guard drone center.

The new flight center will be intended for the National Guard and the site of Camp Shelby was chosen out of a possible 19. Many tactical air units are trained in Camp Shelby before they are ultimately deployed off for duty. Camp Shelby is also home to a Brigade combat team. The Spokesman for the National Guard named Colonel Timothy Powell states that the new site will not only be used for mobilization but soldiers will be trained from the entire county as the UAS is operated. Basically, the drone center will also be utilized during times of peace in the country as well.

The Spokesman also pinpointed that the drone center will serve as a much needed training ground which will ultimately add another regional activity in Camp Shelby. The Representative named Steven Palazzo is also allocating an additional $48 million dollars towards training systems and equipment that will be needed in Camp Shelby. The projection of financial support and new jobs has not been determined yet but the numbers should be clear as soon as the new drone center is established in Camp Shelby.

The brand new drone center is planned to be established by the end of the year 2012. The Representative elaborates on the point that one of the objectives of the state of Mississippi is to become a leader in drone technology and Camp Shelby is integrating well. The establishment of the drone center will increase the ultimate value of Camp Shelby and work will be done more efficiently with the Aerospace System. The successful role of the Camp will be added upon as the new center is added.

Overall, the expansion of Camp Shelby will assist the military and the surrounding local community.

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BNSF Railway’s Economic Development Group Generates $1.7 Billion & Creates 4,400 Jobs

viterbicareertoolbox.usc.edu/

The economic development sector of BNSF Railway has announced the successful creation of nearly 4,400 brand new jobs and the generation of $1.7 billion dollars.

BNSF Railway worked with a variety of customers so that they can locate facilities in a wide range of communities. The customers of BNSF invested nearly $1.1 billion dollars with 172 facilities being expanded and 2,130 jobs being created in the year 2011. For the year 2010, customers invested nearly $680 million dollars while also expanding 136 facilities and creating 2,316 jobs. The amount of investment money nearly doubled for the year from 2010 to 2011. There are also nearly 373 projects with customers which have a projected investment of approximately $5.3 billion dollars and the possible creation of almost 10,000 jobs.

Some of the facilities that were expanded in 2011 with BNSF include power plants in the states of New Mexico and Kansas and a variety of fertilizer facilities in the regions of Texas and Iowa. Other facilities that were assisted include ethanol, plastics and steel. There has also been a demand for crude oil in the Basin of Williston which has led to the expansion of 6 new gas and oil facilities with an initial investment of nearly $125 million dollars.

The Vice President of BNSF Vann Cunningham elaborates on how the company was able to expand the amount of jobs in a stagnant and struggling economy. The Vice President is also very optimistic about the future of BNSF as he pinpoints the future economic development projects that are projected to create a myriad of jobs and boost surrounding communities. Some of the future projects include the expansion of the Toyota plant in the state of Mississippi and the construction of a BNSF facility in the state of Kansas.

Overall, the economic development success of BNSF is leading towards growth in a variety of states.

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Universities in Mississippi Will Now Focus on Economic Development

http://www.usm.edu/cj/

The Universities in the state of Mississippi will be focusing on economic development matters and the ultimate creation of jobs.

The president of the University of Southern Mississippi elaborates on the focus of the institution as they work in a synchronized manner with the state and local agencies to create some brand new industries. There are also many programs that will be implemented by the University to boost the creation of jobs. Some of the job boosting programs include a new science program that focuses on polymers, a research center for marine life and a new security system for the variety of sports events.

The education system in Mississippi is also facing a budget that is extremely tight due to the economic climate. The commissioner of higher education Hank Bounds elaborates on the fact that many of the Universities in the region of Mississippi are receiving funding from the majority of tuition and less money from tax dollars. The legislative budget for the state of Mississippi is also not promising as funding will be decreased by 1.9 percent. Unfortunately, the Universities are going to have to utilize tuition money to create economic opportunities around the region. The federal aid is important as spending and funding by the state and government is decreased.

Hank Bounds points out that the top three Universities in Mississippi are solely relying on federal funds and the dry up process is beginning. The Universities will have to be self-reliant as the economy suffers and working and unemployed people become the number one priority. One of the main components of the economic development plan is a “Blueprint”. The blueprint plan will be introduced in January as Universities and businesses work in synchronization to assist with the surrounding community.

Ultimately, the Universities in Mississippi are going to have to rely on economic development in order to strive.

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Top States for Doing Business

A survey conducted by Area Development magazine lists the top 10 states for doing business.

The list was compiled by AD magazine based on how they scored in 12 site selection categories, as rated by a select group of prominent location consultants. The top five states managed to get into the top-5 choice in at least 8 of the 12 categories.

Here’s the full list of states, followed by excerpts of the analysis provided for the top states.

  1. Texas
  2. Georgia
  3. Alabama
  4. South Carolina
  5. Indiana
  6. Louisiana
  7. North Carolina
  8. Tennessee
  9. Mississippi
  10. California

Texas topped the list as leading the economic recovery, and for an overall business environment (business friendliness, incentive programs, corporate tax, and the cost of doing business).

It also scored high in terms of labor costs and availability, and in terms of infrastructure (shovel-ready programs, utility rates, rail & highway accessibility, and access to global markets).

It’s not surprising that the South and Southeast dominate the list topped by Texas, with California as the only outlier in the West.

“The high rankings awarded to Texas and many Southeastern States do not surprise us,” said Andy Shapiro, managing director for Biggins Lacy Shapiro & Co, in a quote given to AD magazine. “These states tend to feature generally well-organized economic development and work force development efforts and historically lower wages and other costs of doing business.”

Bob Hess, Executive managing director for Newmark Knight Frank, concurs with this analysis. Said Frank, “My opinion is that consistency in business development policy and predictability in business climates across multiple critical location factors will always be rewarded and recognized by corporate America no matter the state of the economy.”

Louisiana, which wasn’t in the top 10 list compiled by AD magazine last year, has shown admirable improvement that points to good administration.

In a statement, Louisiana Governor Bobby Jindal lauded his state’s efforts at improving the business climate and workforce development programs. Said Jindal, “Louisiana’s high ranking by Area Development shows that site selection consultants are taking notice of our improving business climate and our workforce development programs.”

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