Sales Tax Funds Incentive for Danfoss Development in Clark County

Sales Tax Funds Incentive for Danfoss Development in Clark County

Through a program made possible by a half-cent county sales tax, the Economic Development Corporation of Clark County awarded $60,000 in May to Danfoss Commercial Compressors for moving a production line from Mexico to Arkadelphia.

Danfoss makes controls, compressors, variable frequency drives and heating components at 63 factories worldwide and 17 in the U.S., according to Lisa Tryson, the company's director of corporate communications and public relations.

In Arkadelphia, the company makes 2.5-10 ton scroll compressors and various condensing units in a range of 1/6 horsepower to 60 horsepower units.

The company has added 49 jobs at the Arkadelphia factory since last year thanks to the new production line, bringing total employment there to 240.

Danfoss was able to receive the $60,000 incentive from Clark County by going through an application process detailing the growth that the company would provide for the area.

According to Stephen Bell at the Arkadelphia Regional Economic Development Alliance, Danfoss originally committed to add 20 jobs at $16 per hour. At minimum to qualify for an incentive, the jobs a company creates must provide a wage of at least $12 per hour.

"It really puts Clark County we feel like at a good competitive advantage with other communities outside of and in Arkansas," Bell said. "We’re able to offer local incentives thanks to the support of the county voters."

Bell said the sales tax was just renewed in 2014 for another seven years with 70 percent voter approval.

Danfoss employs more than 20,000 people worldwide and has been in Arkadelphia since 2006, when it purchased Scroll Technologies.