Trinity company eyes expansion
A Randolph County adhesives manufacturer is considering an expansion that would add 14 jobs to its Trinity location.
Jowat Corp. plans to build a 9,000-square-foot addition to its Lois Lane facility as part of a five-year growth plan that will add new capacity in multiple product lines, according to the Randolph County Economic Development Corp.
The project would involve an investment by the company of $4.3 million over two years. The jobs would pay an average yearly wage of $28,229.
Jowat is seeking assistance from the state, as well as Randolph County and Trinity, for the expansion.
The company is eligible for an occupied building reuse grant of $70,000 through the North Carolina Rural Center. The grant carries a required local match of 5 percent, or $3,500. Trinity and Randolph County would share equally in the match by each contributing $1,750.
The City Council on Tuesday scheduled a public hearing for June 18 to consider submitting a grant application to the state and to contribute its share of the local match, which would be contingent on the county’s funding commitment.
According to its website, Jowat makes adhesives for several industries, including wood and furniture manufacturing, paper and packaging products, the automotive industry and its suppliers, as well as graphic arts and textiles.
The first phase of the project would involve expansion of one of its manufacturing facilities and the addition of new equipment. A portion of an existing facility will be demolished and an additional 9,000 square feet will be built.
Building renovation and expansion cost is estimated to be $800,000, with equipment investment of $2.6 million. Construction is expected to take two years. Additional building construction in the amount of $900,000 is planned at some point in the future.
The expansion would generate an estimated $7,824 in new tax revenues over the first three years and $18,150 over six years.
The new jobs would primarily entail manufacturing, equipment operations and related positions, according Kevin Franklin, existing business and industry coordinator for the EDC.
“This is what they are committing to right now. We feel, based on our conversations with them, there’s no reason this can’t happen,” Franklin said.
A Jowat representative could not be reached for comment.
The project is unrelated to another expansion by adhesives maker Novamelt Americas LLC, which is located next to Jowat. Both companies are headquartered in Germany and established a joint venture in 2005 that brought Novamelt to Jowat’s existing campus in Trinity.
The companies are now separate, but don’t compete with each other. Novamelt is planning a $4 million expansion that will create 11 jobs.
Jowat located in Trinity in 1979 and has grown consistently since then, according to the EDC. The company has 115 employees and is Trinity’s largest taxpayer, paying the city $9,493 in real and personal property taxes in 2012.