Shaw Eyeing Expansion in Alabama

Andalusia, AL, May 5—According to a report in Andalusia Star News, Shaw Industries has high hopes for a large-scale expansion at its operation here, which has the potential to create a significant number of new jobs. It quoted Shaw Industries Director of Operations Cary Baker as saying that, ”The company is aggressively pursuing this and have been for months now." At present the newspaper said the firm employs more than 1,600. Baker noted in the article that the local Shaw plant is competing with other locations in Georgia, and therefore Andalusia, Covington County and the State of Alabama must prove to be competitive. He said that the company is trying to work with the Economic Development Commission and the city to see what incentives are available. Shaw's director could not point out which specific sites in Georgia are also being considered by corporate officials for the plant expansion. He did, however, say that at this point that economic incentives in Andalusia are lacking compared to Georgia's. If circumstances do not change, that could potentially mean the local plant will lose out on the growth project. "We're at least half a million dollars (in incentive monies or services) behind Georgia," Baker said regretfully. Andalusia Mayor Jerry Andrews, who also acts as Superintendent for the City of Andalusia Utilities Board, says that an expansion at Shaw would be great for the entire county and that he will do all that's within his power to assist the company garner the project. The utilities board pledged during their last meeting to help Shaw achieve the company's goal of expansion. "It's a small investment if we get jobs in here," Andrews said. "They're competing with three operations in Georgia that can do the same as Shaw here in Andalusia," Andrews added, stressing the importance of assisting the company secure more jobs. "The State of Alabama doesn't have enough to make them (the local Shaw plant) competitive. This is really making a statement to Shaw of support," he said of the board's commitment. "If for two years, they don't do anything, the deal's off," Andrews stated to the utilities board. "It's just an investment in a statement to Shaw that we want these jobs." The Utilities Board committed to assist the company with up to 37.5 percent of the minimum funding amount required for the local company to be competitive. That would equate to a maximum of $37,500 per year in contributions from the city utilities authority to Shaw. Andrews explained that the incentive package currently being developed to bring the expansion and new jobs to the Andalusia area is very similar to an agreement that was reached when the company expanded in 1999. Covington Electric Cooperative has agreed to fund 12.5 percent of funding for the initiative. In addition, the City of Opp is willing to foot 12.5 percent of the total package, Andrews said. "The amazing thing about this is that it all came through the Covington County Economic Development Commission," Andrews said. "Mayor Edgar was there (at the CCEDC) meeting and Opp made a commitment." Since the city's utilities board was formed after '99, the city previously contributed 37.5 percent of the funding that brought the expansion to Shaw Industries more than five years ago. Utilities Board members and Andrews plan to ask the city council to equally split the monetary amount 50/50 -- meaning that, if Andalusia city officials agree, the city would pay $12,500 a year, cutting the utilities board commitment to that same amount. As in 1999, Andalusia Electric Cooperative (AEC) plans to afford Shaw 50 percent of the funding ($50,000 annually), equally matching the remaining sources for the incentive package. "I think we'll take action at our next (council) meeting," Mayor Andrews said following this week's forum. "Everything was very positive at this (Tuesday's) meeting."

Related Topics:Shaw Industries Group, Inc.

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