News
In the News: A done deal
Posted on August 3, 2013
Originally published in the Times Daily.
Gov. Robert Bentley said there was no question Franklin County needs jobs.
“That’s why it’s an honor for me to be here today to make this announcement of at least 245 jobs coming to Russellville and Franklin County,” Bentley said.
Innovative Hearth Products, headquartered in Nashville, will expand its Russellville operation, tripling the size of the current building.
The current plant on Lawrence Street in Russellville employs 55 people, according to plant officials.
The governor said after talking with company officials he is convinced 245 new jobs is just a starting point.
“We have been fortunate to have brought quite a few new jobs to the state, but we want to add more,” Bentley said.
Mark Klein, Innovative Hearth Products president and chief executive officer, said the plant will produce all of the company’s product with the exception of stoves, which are made at the Auburn, Wash., plant.
According to company officials, the plant will manufacture indoor and outdoor fireplaces, fireplace inserts, gas logs, venting products and fireplace accessories.
Klein said the plant will produce 600-700 fireplaces per day, in addition to the other products line.
Plant manager Mike Davis said the local plant has been operating for 10 years and currently produces 80-120 fireplaces a day and about 200 gas logs.
Klein said the new facility will become the company’s major distribution center for the eastern part of the U.S.
“We will start to work on the new building Monday,” Klein said. “Our expectations are to be in operation sometime in the summer of 2014.”
Klein said the company would not start increasing employment until the expansion is near completion. He said the company’s call center will be moving its operation to the Russellville facility.
Company officials said the average starting salary will be about $12.50 per hour plus benefits.
Russellville Mayor David Grissom said Friday’s announcement is an example of what can happen when people work together with a common goal.
“This happened because of teamwork. A lot of people put a lot of hours into this,” Grissom said. “It’s a great day for the city of Russellville and Franklin County.”
Franklin County Commission Chairman Barry Moore said the announcement will have a positive impact on the county’s economy.
“It’s exciting to think what this can mean to us,” Moore said.
Property owner Mike Madden will be building the expansion, and the company will be leasing it from him for 15 years with two five-year renewal options.
Incentive package
City and county officials said once they learned of the possibility of the plant expansion in Russellville, they developed an incentive package that included tax abatements as well as $1.3 million from local and state money.
County officials said the incentives are performance based.
“We were in position where we were going to lose the facility and workers, or were going to gain 245 jobs,” said Mitch Mays, executive director of the Franklin County Development Authority. “We decided we wanted to win, and we did.”
In July, Innovative Hearth Products announced it would be closing its plant in Union City, Tenn., next spring. Klein said that operation will be moving to Russellville.
Moore said the county has an unemployment rate averaging 7.8 percent.
“Going by our last figures, we have 1,000 people in the county unemployed,” Mays said. “Adding 245 jobs will decrease that rate significantly.”
Company payroll
He said he anticipates the company payroll will be about $6 million to $7 million per year.
“Look what that will do for our economy,” Mays said. “Going after this was a no-brainer.”
Rep. Johnny Mack Morrow, D-Red Bay, said he hopes there are more good days ahead for the county.
“It was a great choice in choosing to come to Franklin County,” Morrow told Klein. “Working together we can have more days like this for the county.”
Mercedes comparison
Sen. Roger Bedford, D-Russellville, said 245 jobs coming to Russellville is like Mercedes going to Vance. In September 1993 Mercedes announced plans to build a manufacturing plant in Vance, which is just east of Tuscaloosa.
“There is no doubt, this is great for us and all of northwest Alabama,” Bedford said. “We work hard to have a pro-job environment in Alabama. It’s something you work at all the time and today, you see the work pay off.”