ROANOKE TIMES
Copyright (c) 1996, Roanoke Times
DATE: Friday, August 16, 1996 TAG: 9608160054
SECTION: BUSINESS PAGE: A-7 EDITION: METRO
DATELINE: FINCASTLE
SOURCE: MATT CHITTUM STAFF WRITER
Thanks to a $230,000 incentive package and a free engineering study, Botetourt County managed to save 150 jobs by persuading Groendyk Manufacturing Co. Inc. to stay and grow.
Groendyk, which makes heat-resistant silicon products used to insulate jets and automobiles, and foam used in seat cushions, said Thursday that it will modernize its Buchanan plant and expand it by 44,000 square feet. The project will involve a $3.7 million investment and will add 25 jobs paying $8 to $12 an hour over the next three years, according to the company.
But Groendyk stayed in Buchanan at the expense of Rockbridge County, which had a site and proposal that Groendyk officials were taking "very seriously," said Roland Dube, Groendyk vice president and general manager.
It's the second time this year that a company owned by RBX Holdings Inc. of Roanoke County has managed to leverage a positive outcome for itself by threatening to leave a small town.
In July, RBX said it might move part of its Rubatex foam rubber operation in Bedford - involving about 300 jobs - to Arkansas if performance didn't improve and the United Steelworkers union rejected a new contract with concessions to the company.
But Botetourt County officials believe the $130,000 it kicked in for Groendyk's site preparation, along with $100,000 from the Governor's Opportunity Fund, was well spent in keeping jobs in the area. Dube estimated that a third of the company's employees are from Buchanan, with another third living elsewhere in the county.
Groendyk's departure would have diminished the success in bringing Meadville Forging Co. to Buchanan this year.
Groendyk also is a major water and sewer customer for the town. The expansion will provide the county about $30,000 a year in property taxes.
"Any time you can assist in keeping your industrial and commercial base in place, it's worth it," Assistant County Administrator Ned McElwaine said.
Groendyk, which has been in Buchanan for 30 years, started looking for room to expand 10 months ago. The company has begun producing a new product line and expects a 60 percent growth in sales in the next five years. As one of six operating units of privately owned RBX Corp., the company does not report its sales or profits.
"We really didn't think we'd be able to do what we wanted to do here," Dube said. Rockbridge County's economic development commission had put together a "real good proposal" that nearly attracted Groendyk to a site across the street from the county's industrial park. Officials from Rockbridge County and the Rockbridge Area Economic Development Commission could not be reached Thursday for comment.
But Dube said Engineering Concepts Inc. of Fincastle convinced company officials they could stay where they are.
"It's amazing they've operated as effectively as they have in that building," said Hal Bailey, president of Engineering Concepts. The original building on U.S. 11 was built in about 1903, he said.
Bailey said the relatively easy acquisition of two adjoining lots helped seal the deal. Owners of a nearby house were ready to sell, and Carilion Health System also was looking for a new office for Buchanan's town doctor.
The expansion, expected to be completed by the middle of next year, is the "icing on the cake for one of Botetourt's busiest years," said Board of Supervisors Chairman Bill Loope. Meadville Forging, York International and Dynax America announced earlier this year that they would build plants in Botetourt County.
"There's no higher honor than to have an existing industry to expand," said Mark Kilbin of the state Department of Economic Development. "It's a sign they've found a home they like."
LENGTH: Medium: 71 lines KEYWORDS: JOBCHEKby CNB