An Indianapolis-based manufacturer and distributor of corrugated paperboard products will open a facility in Cleveland, potentially bringing up to 83 new jobs, as well as generating millions in …
An Indianapolis-based manufacturer and distributor of corrugated paperboard products will open a facility in Cleveland, potentially bringing up to 83 new jobs, as well as generating millions in property tax revenue.
The announcement was made Tuesday during the Cleveland/Bradley Industrial Development Board meeting at the Cleveland/Bradley Chamber of Commerce.
The facility will initially bring 50 jobs to the area, with management, supervisory support and front-office support employees earning $21.50 per hour and production employees earning $17.50 per hour, excluding benefits.
According to Doug Berry, vice president of economic development for the local Chamber, the company expects to employ 83 workers by December 2023. The plant is expected to be operational by October this year.
“Things will be moving at a rapid pace,” Berry said.
The company, Triumph Sheets LLC, an affiliate of Schwarz Partners, acquired a 357,000-square-foot building located on 4100 Old Tasso Road, where it will invest up to $14 million for the building’s purchase and improvements. In addition, the new owners plan to invest up to $30 million in machinery, tooling, IT equipment and other personal property over the next five years.
More than $1 million will be spent on the rehabilitation of the site’s railroad access infrastructure.
The company purchased the building in March.
The Tennessee Department of Economic and Community Development will be providing grant funding through its FastTrack Infrastructure Development Program to assist the Industrial Development Board and the city of Cleveland with the costs of railroad infrastructure rehabilitation, Berry said.
As a result, the Cleveland/Bradley County Industrial Development Board, along with Bradley County and the City of Cleveland, will apply for a FastTrack grant for $500,000 from the state's TDECD to assist with the infrastructure needs of the project.
Triumph will provide matching funds for the grant, which has already been submitted by the IDB.
In addition, the state will provide $50,000 to offset training expenses, as well as some $2.5 million in job creation, enhanced jobs, industrial machinery and sales and use tax exemption credits.
Berry told the Cleveland Daily Banner the IDB has extended a property tax incentive to Triumph Sheets equal to a 37.5% discount on their normal property tax payment for a period of seven years.
"The offer was based on a machinery and equipment investment of $30 million and an investment of approximately $14 million for the purchase of the land and building and the planned upgrades," Berry said. "Over the seven-year period the company will pay the city and county $636,184.00 in real property taxes and $760,981.00 in personal property taxes. The company will receive a tax break of $456,588.00 on their personal property taxes and $381,710.00 on their real property taxes."
The building currently generates $38,000 per year in property tax revenue.
Berry said the railroad link to the plant was constructed in 1971 and has not been used for approximately 15 years. As a result, it will require upgrading to accommodate the heavy material that will be delivered by rail.
According to the company, the Old Tasso Road facility will feature the “widest, longest and only 132-inch triple-wall corrugator machine in the world.”
Berry said the company requires railroad service for product shipments. He said the sheet they will be utilizing will be constructed at mills in South Carolina and North Carolina. The company manufactures packaging products.
“This project is a rail user and they are currently projecting they will run eight to ten railroad cars per day into the plant,” Berry said.
He said the rolls of corrugated material are so large that they require shipment through rail transportation.
The facility was formerly occupied by Westvaco and was owned by a local investment group, JLK Enterprises.
Prior to its acquisition by JLK, the site was held by Frontier Properties. In addition, the property was once owned by local businessman Lynn Jones. Under his ownership, the building converted to a warehouse, providing services to companies such as Whirlpool and Wacker.
The company is expected to produce $3.7 million in payroll dollars, which will result in the generation of approximately $1.1 million in retail spending in the city and county.
Forty percent of income spent in retail will generate about $1.1 million in city county retail spending, resulting in an additional $32,000 a year in sales tax in Bradley county as a whole. The sales tax percent is 2.75% for the city and county, excluding the state's 7% sales tax.
Cleveland Mayor Kevin Brooks said the city is excited to welcome its newest industrial manufacturing partner to Cleveland and Bradley County.
“This announcement of over $40 million in investment to our community brings us a new business, all while reinvigorating the old 357,000-square-foot industrial site of the former Westvaco campus located on Old Tasso Road,” Brooks said. “This is the best of both worlds. New manufacturing on an underutilized industrial site. We thank Triumph Sheets LLC for believing in Cleveland and bringing high paying, highly skilled jobs into our workplace.”
Bradley County Mayor D. Gary Davis also welcomed Triumph Sheets, LLC, to the area.
“I am pleased to welcome our most recent addition to our industrial supply family of businesses and corporations,” Davis said. “Their initial investment, repurposing of an existing building, improvement of rail service and addition of over 80 new employment opportunities are just a few of the positive aspects of this newest addition to our diverse and growing economic strength.”
Davis thanked everyone who worked to attract new business and employment opportunities to the region.
“To all who helped in securing yet another stable and needed project for Bradley County and our region, please accept my thanks and appreciation for another job well done!” Davis stressed.
Print subscribers have FREE access to clevelandbanner.com by registering HERE
Non-subscribers have limited monthly access to local stories, but have options to subscribe to print, web or electronic editions by clicking HERE
We are sorry but you have reached the maximum number of free local stories for this month. If you have a website account here, please click HERE to log in for continued access.
If you are a print subscriber but do not have an account here, click HERE to create a website account to gain unlimited free access.
Non-subscribers may gain access by subscribing to any of our print or electronic subscriptions HERE