Unilin NC Job Creation Clause To Be Reviewed

Thomasville, NC, Dec. 17, 2009--The Thomasville City Council is expected next week to consider waiving Unilin Flooring's minimum job creation clause for 2010 in the company's 10-year economic development contract with the city.

In September, Kristen Lauten, Unilin Flooring director of manufacturing finance, sent notification to the city of Thomasville that the company has not met its goal for job creation.

In the memo to Thomasville officials, she said Unilin Flooring has had to reduce its staff to manage costs in the economic downturn, citing the company had been hit hard because flooring is tied closely to residential construction and remodeling.

"When we broke ground on this plant in 2004, we had planned to have almost 400 employees by this time and be well into the execution of our Phase 3 expansion," Lauten wrote in the memo.

"The reality is that we will employ approximately half that number at year end 2009. ... Despite the economic challenges, we are still on track to have invested $80 million at this campus by the end of 2009 as we originally planned."

In 2004, the city of Thomasville, Davidson County and the state of North Carolina agreed to a total of $14 million in incentives for Unilin Flooring to locate in Thomasville.

Councilmen said Unilin is looking to take advantage of a new incentives policy the City Council recently approved.