Wal-Mart initiative nets more state jobs

Wal-Mart U.S. President and Chief Executive Officer Bill Simon’s (shown) commitment in January for the retailer to purchase more products developed in the United States has led to companies relocating here.

Wal-Mart U.S. President and Chief Executive Officer Bill Simon’s (shown) commitment in January for the retailer to purchase more products developed in the United States has led to companies relocating here.

Friday, November 1, 2013

A second Chinese manufacturer has signed a deal to move at least some of its operations to Northwest Arkansas, the head of the Arkansas Economic Development Commission confirmed Thursday.

The move is tied to Wal-Mart Stores Inc.’s promise to buy an additional $50 billion in U.S. products over the next decade, according to Grant Tennille, the development commission’s executive director. Tennille also said other companies are coming to the state as a result of the Wal-Mart initiative.

Tennille would not disclose the name of the Chinese company, saying only that an announcement would be made “soon.”

“The deal is all signed. The company has its deal with Wal-Mart and we have our deal with the company,” Tennille said. “What we’re working on right now is location, specifically. We’re trying to find an existing building that works, and we’ve looked at a few.”

The unidentified consumer-products company is making an initial capital investment of $1.5 million and delivering 65 jobs. Tennille said the state would provide funding as well.

About the product, Tennille said: “It’s a thing that sells for normally around 10 bucks, but they sell a lot of them. A whole lot of them.”

In addition to the Chinese company, three to four other companies are set to land in Arkansas because of Wal-Mart’s plans to buy more American goods, although Tennille did not yet know when and where they would establish operations.

“They could end up going anywhere [in the state],” he said. “We’re at the stage in these conversations where we’re still trying to figure out what the companies’ needs are and how various Arkansas locations might fit those best.”

The companies are relocating here in response to Wal-Mart U.S. President and Chief Executive Officer Bill Simon’s commitment in January for the retailer to purchase more products developed in the United States. Since then, suppliers have committed to expand operations or bring operations to the U.S. to the tune of 1,600 new jobs. Wal-Mart stores currently stock more than 1,700 items manufactured, produced or processed in the state.

Last month, toy-maker Redman & Associates in Bentonville announced it is opening a plant in Rogers, where it will transfer operations from a Chinese facility over the next three years. The operation will generate 74 new jobs and a capital investment of about $6.4 million from the company, plus more funding in the form of tax incentives and wage earn-back incentives.

Redman makes battery-operated ride-on toys, and all the toys will go to fill orders for Wal-Mart.

Also last month, longtime Wal-Mart supplier Hanna’s Candles of Fayetteville committed to further expand its business.

“Our goal with Hanna’s is lofty - to go from roughly $4 million in 2012 to $30 million in 2013 and $45 million by 2017,” said Wal-Mart spokesman Katie Cody. Hanna’s Candle Co.owner Burt Hanna has said he has has doubled the company’s workforce to about 200 people, including temporary workers, in the past year because of an increase in sales to Wal-Mart.

Meanwhile, in Washington, D.C., on Thursday, Wal-Mart and U.S. Secretary of Commerce Penny Pritzker announced at the Commerce Department’s SelectUSA 2013 Investment Summit that companies Elan-Polo, Louis Hornick & Co. and EveryWare Global Inc. will create 385 jobs while expanding operations within the U.S. borders to serve Wal-Mart. Elan-Polo makes footwear, Louis Hornick & Co. makes curtains and EveryWare Global makes glassware. The boost in operations will take place in Georgia, South Carolina and Pennsylvania, respectively.

Plans to expand the three companies’ operations were put on the fast track after Wal-Mart’s U.S. Manufacturing Summit in Orlando in August. The event resulted in roughly 300 meetings with more than 500 suppliers and officials from 34 states - including Arkansas Gov. Mike Beebe and three other governors.

“Today’s announcement is a great example of the progress that’s being made, and it highlights opportunities that exist for manufacturers to invest in the USA by re-shoring or expanding their manufacturing in America,” Wal-Mart’s Simon said in a release Thursday. “Companies, government officials and industry leaders are working together to increase manufacturing, and these efforts are helping more Americans get into good-paying jobs and more businesses reinvest in the U.S. economy.”

Elan-Polo, a global footwear and 35-year Wal-Mart supplier, will start production of injection-molded footwear in March at a factory in Hazelhurst, Ga., as part of a joint venture with McPherson Manufacturing. The new facility eventually will provide 250 jobs and produce 20,000 pairs of shoes a day. Production previously took place overseas.

Louis Hornick, a leading manufacturer and importer of window coverings and home textiles, will invest $2.5 million to establish a new manufacturing facility in Allendale County in South Carolina. The investment is expected to create 125 jobs over the next three years.

EveryWare Global, which manufactures bakeware, beverage ware, tabletop and household glassware, will make Mainstays canning jars for Wal-Mart in its Monaca, Pa., plant. The company is investing $1.8 million to expand factory capacity and establish a new product line.

Front Section, Pages 1 on 11/01/2013