As state and local officials gathered in a cavernous building on U.S. 70 Thursday morning, a top executive with Meridian Automotive Systems observed that his industry has felt the pinch of a slowing economy.
“Our friends from Volvo and Freightliner can tell you these are not the best of times,” said Brian
Allenspach, president of Meridian’s Commercial Truck division. “... But we decided it was the right thing to do.”
Later, Allenspach explained that Meridian’s customers, including the Freightliner plant in Cleveland, Volvo’s plant in Dublin, Va., and Mack’s plant in Greenville, S.C., wanted their suppliers nearby.
So even though the heavy truck industry is traveling in low gear right now, Michigan-based Meridian decided to invest in a Rowan County facility so it can preserve its share of the market and be prepared when the good times return.
Despite the bone-chilling feel of the concrete floor, local and state officials welcomed Meridian warmly Thursday for the ribbon-cutting ceremony in the former Quantum building.
Though he offered them a shiny new shovel, Randy Harrell, executive director of the Salisbury-Rowan Economic Development Commission, said Meridian officials couldn’t have a traditional “groundbreaking” because they’re buying an existing facility.
Instead, officials cut a ribbon in front of an interior metal door and then rolled up the door to reveal crews hard at work finishing that part of the building.
Quantum Films erected the shell building in 1989, expecting to manufacture the thin cellophane film that wraps around consumer products. But the economy didn’t cooperate, and Quantum never even finished pouring the concrete floor.
Ray Denny, an official with the N.C. Department of Commerce, said recruiters had been working to close the current deal for about three years.
State and county officials first worked with the Cambridge company, which manufactured molded, reinforced fiberglass parts for heavy trucks. But Cambridge filed for bankruptcy, Allenspach said, and Meridian purchased the company last June.
That marked Meridian’s first venture into the heavy truck business, and right now the Commercial Truck division accounts for a small part — $150 million — of Meridian’s $1.1 billion in total sales.
Meridian manufactures most of its parts for passenger cars and light trucks at plants in the Midwest.
Rowan County Manager Tim Russell said the company has told the county it expects to spend about $2 million finishing the 254,000-square-foot building and an additional $15.9 million during the next six years.
Allenspach said the plant should employ about 100 by the end of the year, and county officials expect that number could rise to 140 — paying $10 to $14 an hour — within three years.
In exchange, the county has pledged an economic incentive grant of up to $100,000 — if the company invests all that it says it will — and that will match a similar $100,000 grant from the state.
After Meridian has operated here for a year, it also can qualify for state tax credits. Marchela Roca, with the N.C. Department of Commerce, said Meridian can claim tax credits of 7 percent of the money it invests for machines and equipment, a $1,000 credit for every job created and a $500 credit for every employee trained through Rowan-Cabarrus Community College.
Without the economic incentives, “it would be a tough road, especially with the economy as it is now,” Allenspach said.
A number of local officials attended Thursday’s ceremony. Jake Alexander, chairman of the Economic Development Commis-sion board, said, “This is the fun part of economic development.”
Besides new jobs and new tax revenues, county commission Chairman Steve Blount said, Meridian brings “new corporate citizens” with “new blood and new ideas” that can help the county and organizations like the United Way.
County commissioners Gus Andrews and Leda Belk, County Manager Russell, Salisbury Mayor Susan Kluttz, Spencer Mayor Buddy Gettys and Chamber of Commerce President Jerry Chandler also were among those attending.
Robert Moore, Meridian’s plant manager, said the company hopes the first part will roll off the assembly line in June. Myrick Construction has the contract to finish the building.
Before Thursday’s ceremony, officials parked two Freightliner tractors, one black and one white, and a purple Volvo tractor by the door where everyone entered for the ceremony. Meridian will manufacture hoods and fenders for those very heavy trucks.
The company will install 10 huge presses that use pressure and steam heat to mold fiberglass reinforced with resins.
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