NEWS

Auto parts maker Eagle Manufacturing eyes $35 million project

Friday, Dec 12, 2014

An auto parts manufacturer is proposing a huge improvement for its facility in Florence and the addition of 170 jobs.

Eagle Manufacturing Co. LLC, part of Ontario, Canada-based Linamar Corp., proposed to invest more than $35 million in the project, according to a report released by the Kentucky Economic Development Finance Authority. The manufacturer would either extend its lease or buy its facility in Florence.

Eagle Manufacturing, which makes precision machining and subassembly of powertrain components for the automotive and commercial markets, would spend $9 million on new construction and additions, more than $6.7 million on improvements to existing buildings and about $19.5 million on equipment and related costs. The company would add 170 jobs and retain 242 jobs, paying an average hourly wage, excluding benefits, of $16.16.

Its current leased facility needs significant repairs to continue operating safely and effectively, according to the KEDFA report. Without a substantial investment, the facility will close and lay off employees. Eagle Manufacturing is determining whether it should extend its lease and include the repairs in the lease price or buy the building, located at 7100 Industrial Road, and take responsibility for the repair costs.

Without the incentive, the manufacturer is considering moving the Florence operation to a North Carolina location.

Officials with Eagle Manufacturing and Linamar were not immediately available for comment.

Eagle Manufacturing's proposed project received preliminary approval for $9.2 million in tax incentives under the Kentucky Industrial Revitalization Act and another $500,000 from the Kentucky Business Incentive program for construction materials and building fixtures. Eagle Manufacturing would be required to maintain a base employment equal to the number of full-time, Kentucky resident employees as of the preliminary approval date, which was 242.
Demeropolis covers commercial real estate and development.

 

Source:http://www.bizjournals.com/