International Automotive Components, formerly known as Collins & Aikman, will expand its operations in Old Fort and hire six new employees.
The announcement was made Monday during a public hearing held by the McDowell County Commissioners. At the special meeting, the commissioners approved giving an incentives package of $155,000 that will be paid to the company over a five-year period.
IAC is an international manufacturer of supplier of automotive carpet for various U.S. and foreign producers. The company has received numerous awards in recent years including the prestigious Honda Award presented in 2009 and 2008.
The decision to expand the Old Fort plant was made by IAC after the company evaluated manufacturing operations at several of its North American locations. The expansion involves the purchase and installation of $4.1 million in new machinery and equipment.
Plant Manager David Sudzina said this expansion allows IAC to get new contracts that will "enable IAC to retain and add new employees for the next generation of vehicle programs and to maintain a high quality and low cost operation."
The investment of this machinery and equipment will allow the company to hire six new people and make the operations more competitive in 2010.
"It creates a favorable environment for future positive decisions," said County Manager Chuck Abernathy, who is also the executive director of the McDowell Economic Development Association.
County officials held the public hearing on Monday, as required by state law. The incentives package being offered is based on the combination of jobs being created and the investment by the company. IAC is contractually bound and must perform prior to any payment taking place.
During the public hearing, Ken Buckner of Nebo said he was concerned about the county offering $155,000 of taxpayers' money to an international corporation like IAC in order to create just six new jobs. He also wanted to know what kind of jobs would be created.
"I was shocked to find out who we are helping here today," he said.
He also questioned the secrecy among county officials about what company would get the incentive, prior to Monday's meeting.
"There was no reason this couldn't be published in the paper," he said.
Commissioners said they felt IAC has been good to the people of McDowell and should get some help from the county.
"If there's something we can do to show our good faith, we should," said Commissioner Dean Buff.
"I think we are going to benefit in the long run from this," said Vice Chairman Barry McPeters.
Sudzina said the six new jobs would be "hourly factory positions." Interested persons should contact the local N.C. Employment Security Commission office about an application.
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