Asahi Kasei Plastics has completed construction of its more than $30 million production plant at Airport Road and Wilkinson Street in the Elm Industrial Park and is growing the business faster than predicted.

Tom Hill, president of the Limestone County Economic Development Association, said the plant began testing its production lines in late March and early April and has hired 51 employees.

That exceeds the 35 employees Tjokro Hermanto, Athens site leader for the Japanese company, predicted the plant would have at start-up. When the company sought tax abatements for the project, it vowed to create 50 jobs in the first three years.

“They’ve hit that 50 jobs already, which is very good on their part,” Hill said.

Construction began in September 2014. Hill said the total cost of the new production facility was certified at $32.5 million.

The facility processes plastic resin into finished pellets that are shipped to plastic injection molding facilities where the material is transformed into automobile components.

Bunni Wheeler, supply chain administrator for Asahi, said Monday the company is planning to install a third production line at the new facility and will begin bringing on additional workers this summer to accommodate demand.

The new line is expected to create an additional eight to 10 jobs and is slated to begin operating in September, she said.

In response to the plant’s completion, the Athens City Council voted unanimously Monday to go ahead with an application for a state industrial incentive grant on Asahi’s behalf.

“They’ve already run one of their production lines, and they’ll be running full force, in my understanding, in the next 60 days if not sooner,” Mayor Ronnie Marks said.

Hill said the company’s total investment exceeds the $10 million needed to get the maximum $150,000 industrial incentive grant from the Alabama Industrial Development Authority.

The grant is designed to lure industrial companies to the state.

Because the state cannot legally issue the grant to a private company, the Athens Industrial Development Board will retain ownership of the land until the grant is received.

It will then turn the deed and money over to Asahi when the check arrives, Hill said.

In 2014, the City Council approved $1.58 million in non-educational tax abatements for the company over 10 years. At the time, officials predicted the plant would generate nearly $780,000 in school tax revenue over the 10-year period and more than $400,000 in sales tax revenue during construction.

Wheeler said Asahi will use Alabama Industrial Development Training for its next round of hiring. Asahi used AIDT for its previous three rounds of hiring, she said.

 

Source : decaturdaily.com

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