Quick collaboration among state and local economic developers helped persuade Koppers Holdings Inc. of Pittsburgh to retain its North Little Rock plant and invest at least $23 million to expand it over the next two years.
Koppers, a publicly traded (NYSE: KOP) provider of treated wood products, wood treatment chemicals and carbon compounds, announced its plans Tuesday. In addition to the monetary investment to pay for new construction and equipment, the company said it will add eight workers to the plant, which employs 80 now.
The expansion will modernize the company’s processes and improve its environmental footprint, according to a company news release.
“When Koppers had the opportunity to invest in the future, we chose the dedicated workforce and exceptional community of North Little Rock,” Plant Manager Chris Martin said in the release. “This is a place where people work hard, and we support each other.”
Built in 1907, the North Little Rock facility sits on 157 acres and processes and treats more than 1.5 million wooden railroad cross ties each year. It produces switch ties, road crossings and framed bridge timbers.
The company cited support from the state, Pulaski County and the city as contributing to its decision to expand in North Little Rock.
Koppers qualified for two incentives from the Arkansas Economic Development Commission: Advantage Arkansas, which provides a state income tax credit of 1% of total payroll, and Tax Back, which provides sales tax refunds on building materials, taxable machinery and equipment.
“Just a short time ago, it didn’t seem as though this would be the final outcome,” North Little Rock Mayor Joe Smith said of the company’s expansion. “But an aggressive and effective rapid response by our state and local economic development team, as well as this facility’s fantastic employees, made it happen. Finally, I sincerely appreciate Gov. [Asa] Hutchinson’s support and involvement.”
Robert Birch, North Little Rock’s director of business development, said officials learned in June that the company was considering restructuring operations across the country, and that North Little Rock’s operations could be consolidated into another plant.
Koppers has facilities in 14 other states and seven other countries. The North Little Rock plant is its only facility in Arkansas. In a company news release, Koppers said it will discontinue production at its Denver plant by Aug. 31, and move those operations to North Little Rock.
The North Little Rock expansion will be paid for primarily through the sale of the Denver plant, it said.
“The reason that they decided to stay here was the local management team raved about the workforce that we have, and said, ‘You know, the community is too strong, too good,’” Birch told Arkansas Business. “Then a combination of the state and our office and the North Little Rock Chamber, we all got involved, and what Koppers was so impressed with is, within an hour, we had everybody in the room that they needed to talk to, including [Commerce Secretary] Mike Preston from the AEDC. And that quick reaction showed them how important they were to us.”
Birch said Todd Larson, the city’s special projects director who previously served as director of economic development, took the lead on the project.
“Any request that they needed, we were able to answer quickly and … we’re happy that they’re staying here,” he said.
Birch emphasized that, although the company may benefit from industrial bonds, it was workforce quality and not incentives that persuaded it to expand in North Little Rock.
“The North Little Rock facility has been an establishment for more than a century, and we are grateful that the company has chosen to continue this legacy by investing millions into the site,” the governor said in a news release. “I am confident that the company’s entrepreneurship, combined with our pro-business environment, will contribute to the continued success of Koppers in Arkansas.”
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