Unilin Seeks Waiver of Jobs Clause in Thomasville

Thomasville, NC, Oct. 13, 2009--Despite investing nearly $80 million at its Chair City headquarters, Unilin Flooring has requested that Thomasville officials waive the minimum job creation clause for 2010 in its 10-year economic development contract with the city.

Kristine Lauten, Unilin Flooring director of manufacturing finance, sent notification last month to the Davidson County Board of Commissioners, the city of Thomasville and the Davidson County Economic Development Commission that the company has not met its goal for job creation.

In the memo to the government entities, Lauten said Unilin Flooring has had to reduce its staff to manage costs in the economic downturn. She said the company has 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.

“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.”

At its briefing Monday evening, the Thomasville City Council decided it will consider calling for a Nov. 16 public hearing next Monday night on Unilin’s request for a waiver.

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.