A manufacturer of processing equipment for the poultry industry is expanding a facility in Russellville with plans to add 50 full-time workers over the next three years.
Phoenix Innovations Inc., a maker of needle injectors used for flavor enhancement, on Friday said it has acquired the former Dalton King Packaging facility and plans to add 25,000 square feet of space to the existing structure and install two additional product lines.
Nate Harrison, president and one of the founders of Phoenix Innovations, said this project allows the company to manufacture and distribute more products, including pumps and bird chilling systems, to customers around the country.
The company, founded two years ago, made its first sale the week before the U.S. started to shut down because of covid-19.
"It was a tough time," said Harrison, who has worked in the poultry industry for 22 years. "We had to pivot to non-personal sales very quickly and we were actually able to grow our business during the pandemic."
At the time, Phoenix Innovations operated out of a 5,000-square foot warehouse in Russellville, where it manufactured items for some of the largest poultry companies. But supply chain issues coupled with a relatively small workspace affected lead times and made it difficult to operate, Harrison said.
"Working with the city we were able to develop a year or two ahead of schedule," he said.
As part of the expansion, Phoenix is in the process of hiring enough workers to increase its workforce fivefold. Harrison said the company is looking for sales professionals, engineers, production managers and common labor, among other roles.
In addition to the extra space and equipment, there are plans to raise the roof of one section for bridge cranes. Harrison said the cranes would assist with moving large, steel cylinders used for chilling birds. A modern break room for employees is also in the works.
Harrison estimated the entire project would cost about $4 million.
The project is expected to be ready by 2023. He said it would not have been possible without help from the city of Russellville and the Arkansas River Valley Alliance.
The expansion qualified for a sales and uses tax refunds for building materials and equipment costs and an income tax credit for job creation, according to the Arkansas Economic Development Commission. It also qualified for $240,000 in community development block grants.
"Phoenix Innovations is a great example of how entrepreneurs succeed and grow in Arkansas," Gov. Asa Hutchinson said in a written statement. "Even though they are still in the early stages of development, Phoenix has risen to its aspirations to become an industry leader and is already amassing customers with several food processors."
The 47,000 square-foot building, located at 4254 S. Arkansas Ave., housed a business that made plastic bags and stretch film for some of the state's largest companies.
While walking through the building, he said some of the old racks had customer lists on them, including meat processors like OK Foods, Simmons Foods and Tyson Foods, who currently do business with Phoenix.
"It was sort of like a full circle moment," Harrison said.