Fort Payne, AL, November 24--Officials with Kronospan, a German-based wood flooring company, have officially announced it will not locate a large industrial plant in Fort Payne, saying the project simply grew too big for the area to accommodate, according to the Fort Payne Times-Journal.
Jimmy Durham, executive director of the DeKalb County Economic Development Authority, called the news "disheartening."
Durham said that since he first began working to locate Kronospan in Fort Payne about a year ago, the scope of the project has doubled in size. He said this was one factor in the decision to locate the plant elsewhere. He said the alternate site has not yet been determined.
"In recent conversations with Kronospan personnel, they have indicated that the project has increased in size such that the Fort Payne site will not accommodate the project," Durham said.
He said there was "no doubt" Fort Payne was a "leading contender" to land the Kronospan facility but said, "the scope of the project has grown so much that it does not appear we will be able to accommodate the company’s need for level, developable acreage."
Kronospan is looking to locate its first American production facility in the Alabama or Georgia area. Durham, Fort Payne Mayor Bill Jordan and State Sen. Lowell Barron led a delegation to Germany this summer to meet with Kronospan officials.
Following the delegation’s visit to Germany, Durham said Kronospan officials revised initial plans and are now looking to locate two plants at the selected site. He said inclusion of the additional facility increased the project scope to an estimated $600 million investment that requires about 230 acres and will employ more than 600 people.
Jordan said he was "disappointed" to learn that the company is now focusing its site search elsewhere.
"We have worked closely with Jimmy Durham and the Kronospan officials to locate this industry here. It would certainly be a benefit to Fort Payne and the surrounding area," Jordan said.
"We know, from the meeting in Germany, that Fort Payne and the people of Fort Payne made a very positive impression on the company’s owner, and that he wanted to locate the facility here," Jordan added. "While we are disappointed that this facility will not locate here, we are optimistic that as Kronospan continues to expand in the American market that they will possibly look to Fort Payne for future projects."
Barron also expressed disappointment that Kronospan will locate a plant elsewhere.
"There was a tremendous effort from local and state officials, as well as TVA and NAIDA to locate this facility in Fort Payne," Barron said. "This effort showed each of us what our area can offer when we all work together. We know that Kronospan officials liked the Fort Payne area, it’s people and the workforce it offers. It appears the project outgrew our area and became cost prohibitive once it increased so dramatically in size."
While Kronospan officials have not announced a chosen site for the project, Barron said he hopes it is in Alabama.
"Fort Payne may not have been selected, but we do hope that they choose a site in Alabama, where they will employ Alabama residents," he said. "Providing good jobs is certainly a priority, and I will continue working with Mayor Jordan and Jimmy to attract new industries to Fort Payne and the surrounding area."
Durham said Kronospan officials indicated efforts to attract the industry, utility rates, workforce and other factors were "far superior than those of other communities working to attract the site, but it boiled down to a factor totally out of anyone’s control that seems to prevent the plant from locating here."
Durham continued, "We know that our area has excellent people and a great workforce, and we will continue to promote our area and try to attract other industrial prospects."
