A Busy Year for Business in Tennessee
Published Apr 07, 2002
The $37 million Country Music Hall of Fame and Museum in downtown Nashville opened to rave reviews in 2001.
Despite the national economic downturn following the events of Sept. 11, private capital investment in Tennessee remained strong, with $6 billion in announced new and expansion capital investments and more than 28,000 new jobs at the end of 2001.
But 2001 was just the latest in a series of impressive years for investment. According to Tony Grande, commissioner of the Department of Economic and Community Development, 2001’s total puts Tennessee on track to achieve a record-breaking $40 billion in new business investment during Gov. Don Sundquist’s two terms in office.
The following is a rundown of some of the major capital investments over the last year that have contributed to yet another year of growth in Tennessee.
West Tennessee
More than $1.7 billion in capital investments from relocating and expanding companies was deposited in West Tennessee in 2001, resulting in more than 9,900 new jobs.
Memphis
Memphis and Shelby County saw $1.7 billion invested in economic development enterprises in 2001, making it the fifth year in a row that Memphis surpassed the $1 billion set by the Memphis 2005 plan, a 10-year economic development strategy focused on improving the Memphis metro area. The total includes 30 relocations to the community and 157 expansions by existing companies.
The largest single investment in Memphis was $400 million by Williams Refining. The crude-oil refiner and transporter of natural gas will expand the refinery at its 178-acre site, creating 90 jobs. It also plans to build a power-generation facility that will power the refinery and provide surplus electric power to TVA.
St. Jude Children’s Research Hospital spent $206.5 million as part of its five-year, $1 billion expansion plan that will more than double the size of the campus and fund the founding of the St. Jude Children’s Infection Defense Center and the St. Jude Genetic Diseases Center.
The more than 6,200 new jobs in Memphis in 2001 include 1,500 as part of a FedEx expansion; 500 due to Memphis International Airport growth; 415 expansion positions at Smith & Nephew’s Orthopedic Division; 400 new Daisytek workers; 199 for Kroger Corp.; and 150 new employees each at Cummins Engine, Bluff City Machine Works, Diesel Recon and Discover Financial Services. Jobs resulting from new business include 150 each at Diamond Comic Distributors, Sure-Test Laboratories and TheOrderPeople, as well as 220 for Ford Motor Co.
In other new business, Imperial Toy Co., a manufacturer of bubble-blowing toys, invested $3.3 million in a 198,000-square-foot facility that employs 88 people, and newsprint manufacturer Bowater Nuway employs 90 at its $70 million, 150,000-square-foot plant.
Jackson
The biggest news in Jackson for 2001 is ARJ Manufacturing’s decision to base its plant in Tiger Jones Technology Park (see story on page 51). The company, majority-owned by Toyota subsidiary Araco Corp., will manufacture automotive seat frames in its 190,000-square-foot facility. ARJ’s move to Jackson is the first concrete step in the city’s plan to draw more Japanese businesses to the area.
Several companies in Jackson expanded their operations last year, including General Cable, with 100 new jobs; Hart & Cooley Inc., with 35 additional jobs; and Rock-Tenn Co.’s folding division, with 23 new jobs.
Around West Tennessee
In Dyer County, Newbern became the new home of Siegel-Robert Inc., which employs 450 at its $45 million, 402,000-square-foot automotive parts manufacturing center, the company’s third facility in Tennessee. Dyer, in Gibson County, welcomed Wisconsin Tool, whose new small gasoline engines plant employs 250.
In Henry County, Paris-based Berripatch Inc. brought in a bumper crop of employees for 2001, adding 50 to its ornamental concrete products company. Lake County’s Ridgely is host to Reelfoot Products, whose new 18,000-square-foot rubber trim plant employs 27. In Ripley, MacDonald’s Industrial Products expanded its magnesium and aluminum auto parts plant, bringing 78 new jobs to Lauderdale County.
Obion County’s Kenton is environmentally friendly with the new presence of Volunteer Plastics, whose 97,000-square-foot plastic recycling facility has 50 employees. In Henderson County, Lexington’s Leroy-Somer’s internal expansion added 120 jobs to its generator manufacturing facility, and Manufacturers Industrial Group brought 100 new employees on board. Covington got a sweet deal for Tipton County with the $3.6 million expansion of hard-candy maker Charms LP, which resulted in 52 new jobs.
Middle Tennessee
Middle Tennessee received more than $2.4 billion in announced capital investments by relocating and expanding companies in 2001, resulting in more than 9,500 new jobs.
Metro Nashville
The city of Nashville became the home of several new businesses, including Cardinal Health Inc., a health-care industry products and services provider, whose new $15.8 million pharmaceutical distribution center employs 80. VoiceStream Wireless Corp. opened a new customer service call center in the city, spending $19 million and hiring 720. Hascall Steel Co.’s new $3.5 million metal-slitting business, housed in the former Steel Coils Inc. building, provided jobs for 74 people, many of them former Steel Coils employees.
Expansion business was also booming in 2001, with 99 Davidson County companies expanding their operations. In Nashville, Sprint PCS made the largest single expansion investment, with $27 million for its customer service center, which added 400 new employees. New hires were the result of several other expansions in the city, including 155 at the Hilton Suites Hotel, 150 for BindTech Inc., 50 for Essex Plastics Midwest LLC and 20 for the Nashville Bun Co. In Antioch, 40 employees were added at Check Printers; Dylan Custom Mixing in Madison hired 150 new workers; Old Hickory’s DuPont Co. added 100 jobs, while Wise Industries in the same city hired 20 more people.
Around The Midstate
Shelbyville, in Bedford County, witnessed some expansion of its own as Calsonic North America Inc. added 110 workers to its automotive exhaust systems plant. M-TEK Inc. brewed up 235 new jobs for Coffee County at its Manchester auto trim facility. In Giles County, circuit-board manufacturer Benchmark Electronics Inc. brought 971 new jobs to Pulaski. Jackson County’s Gainesboro is now the home of Ansei America Inc., maker of automotive door and trunk latches, whose investment added 85 new jobs to the city.
Assurance Packaging and Manufacturing LLC of Lawrenceburg expanded its custom industrial racks business by 90 jobs, investing $1 million in Lawrence County. Business is bubbling up in Macon County, where the Perrier Group’s planned $100 million, 500,000-square-foot bottled carbonated water facility in Red Boiling Springs will employ 200 (see story on page 79). Several expansions in Marshall County have added new jobs in Lewisburg, including 483 positions at Intier’s automobile seat assemblies plant and 100 at Ken-Koat of Tennessee Inc.’s powder coating facility.
In Montgomery County, Clarksville expansions added new jobs at several companies, including 100 at Bosch Braking Systems, 150 at Contact Concepts’ call center and 125 at PremiumWear Inc.’s golf shirt manufacturing facility.
In Maury County, Columbia is revved up over GM-Penske’s new auto parts distribution center, which added 110 jobs to the city. In Spring Hill, Saturn Corp.’s plant expansion added 210 jobs. Aluminum distributor B.R. Metal Products expanded its Livingston center in Overton County, resulting in 150 additional jobs. Metal is also in the news in Robertson County, where American Fabricators Inc. set up shop, spending $20 million and hiring 100 people, in Coopertown.
Health care is the focus of new business in Rutherford County, where National Specialty Services’ pharmaceuticals distribution center employs 160 in La Vergne, and Smyrna’s new TriStar hospital is investing $76 million and will eventually hire 400 when it opens in January 2004. Hendersonville Hospital’s $34 million expansion brought 150 new jobs to Sumner County, and Peyton’s Midsouth added 55 jobs at its grocery distribution center in Portland.
Middle Tennessee saw more expansion business in White County, where Genlyte Thomas Group LLC invested $5 million and hired 80 more employees at its commercial-lighting facility in Sparta. In Williamson County, Franklin got festive with the expansion of ribbon and bow manufacturer Plus Mark Inc., which added 97 employees.
Wilson County gained more than 750 jobs through new and expansion business in 2001, most notably in Lebanon, which welcomed Genesco Inc. – and its 125 new hires – to its community, and had 350 jobs added at Complete TV’s fiber-optic equipment facility, and 100 added at MetoKote Corp.’s electrostatic metal coating plant.
East Tennessee
By the end of 2001, more than $1.8 billion in capital investments and more than 9,000 new jobs were recorded in East Tennessee.
Chattanooga
Tourism is booming in Chattanooga, and Hilton Garden Inn is helping to supply rooms for the city’s visitors. Its $8.5 million, 94-room hotel on Chestnut and Third opened last summer. Covista Communications moved its headquarters to the city from New Jersey and, including its new call center, employs 160.
Covenant Transport, one of the 10 largest truckload carriers in the United States, added 225 jobs. Sofix Corp. spent $3.4 million and added 25 jobs as part of its chemical dyes plant expansion.
Knoxville
The medical and transportation industries were the biggest contributors of capital investment funds and employment growth in the Knoxville area last year. CTI Inc., maker of scanners for nuclear medicine, invested $10 million and created 75 new positions in its expansion, and Parkwest Medical Center announced its $94 million expansion plan, which will add 211,000 square feet to the existing hospital.
Daikin Drivetrain Components (DDC) invested $110 million in an expansion of its manufacturing plant for auto transmissions and torque converters, a move that resulted in 230 new jobs. Express Airlines I, a subsidiary of Northwest Airlines, invested $10 million in a new hangar, employing 250, at McGhee Tyson Airport. Area employment received another increase with 163 jobs from satellite television equipment manufacturer Metron Corp.
Around East Tennessee
In Anderson County, Oak Ridge became the new home of Tennessee Tape & Label Inc., a division of Advanced Labelworx Inc., which had outgrown its Knoxville headquarters. The company invested $1 million and hired 125 workers for its 60,000-square-foot pressure-sensitive labels manufacturing facility.
Blount County got a $2.8 million boost when California-based US DenTek decided to locate its new dental equipment distribution center in Maryville. Intex Supply in Alcoa expanded its existing textile goods facility by 110 jobs.
In Campbell County, Southeastern Kentucky Rehabilitation hired 165 Jellico residents to work in its chemical-warfare-clothing plant, and Caryville welcomed Matix Corp., whose aluminum auto parts company will employ 100. Things are pleasant in Grainger County, thanks to Custom Air-Plenums’ new $2.5 million commercial HVAC unit manufacturing facility, employing 80 in Rutledge. The cool trend continues in Greene County with the relocation of mineral and natural spring water bottler Atlantic Beverage. The move resulted in 200 new jobs, a 130,000-square-foot facility and a $20 million investment for Greeneville.
In Hamblen County, OTICS Corp., an automotive engine parts manufacturer, invested $30 million and hired 50 for its new plant in Morristown, and Dry River Industries expanded its Lowland vinyl fence operations, hiring 200 more workers. Church Hill, in Hawkins County, gained 140 new jobs with the expansion of Hutchinson FTS’ rubber sealants plant.
Vegetables were big business in Jefferson County, where the Bush Brothers & Co. expansion canned $100 million for Chestnut Hill. In the same county, Jefferson City’s Neptec Optical Solutions increased its fiber-optic cable business by 200 workers, investing $3 million.
CVS Corp. brought new business to Loudon, in the county of the same name, where its pharmaceutical distribution center employs 125, while dry ice maker Continental Carbonic Products Inc. hired 50 for its new $7 million plant.
Athens, in McMinn County, is breathing easy now that Denso Manufacturing Tennessee has expanded its oxygen sensors manufacturing facility by 200 employees. In Rhea County, Lear Corp. expanded its Dayton facility, adding 140 workers to its plastic-injection-molding plant.
Bristol gained more than 400 new jobs for Sullivan County through company expansions in 2001, including 200 at Gordon Garment Co. and 100 at Sprint Publishing and Advertising. Pharmaceutical company expansions were also in the news last year in Bristol, where GlaxoSmithKline invested $52 million and hired 70 new employees, and King Pharmaceuticals invested $1 million and hired 50.
Unicoi County received a $42 million investment from Erwin-based Nuclear Fuel Services Inc., whose expansion of its industrial inorganic chemicals plant resulted in 100 new hires. New business in Washington County resulted in more than $117 million in capital investments and more than 1,500 new jobs. Johnson City received the lion’s share of new companies, including Bush Hog LLC, which invested $25 million and hired 450 for its farm machinery manufacturing plant; Cingular Wireless, which invested $10 million and hired 1,000 for its customer service call center; and Eastman Chemical Co., which invested $5.5 million and hired 15 for its information and technology center.
Story by Erica Steakley
Photo by David Mudd
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