Risever to Spend $20M on New Jonesboro Plant, Employ 130

Hefei Risever Machinery Co. LTD announced Wednesday that it would invest $20 million to build its first U.S. operation in Jonesboro’s Craighead Technology Park, a project executives said would create 130 jobs.

Risever, a family-owned company based in Heifei, China, makes machine parts for heavy equipment manufacturers including Caterpillar, Volvo, Komatsu, John Deere and Hitachi. The company said it spent more than year investigating potential sites for the plant, selecting Jonesboro from a list of 70 cities in five states.

The company aims for its plant on East Highland Drive to have annual production capacity of 18,000 tons of steel. Its $20 million investment will be spread over five years.

Risever General Manager Yonggang Lai said the plant is part of the company’s “Made in the U.S.A.” strategy to provide products to North American customers that are locally made and faster to deliver. He said the company chose Jonesboro because of its location, industrial base and supply chain, industrial park, and competitive business costs. He also cited Gov. Asa Hutchinson’s support for Chinese investment

Hutchinson joined Risever executives and city leaders at Arkansas State University’s Cooper Alumni Center to announce the project. He called the company a good fit for the city and said it is “the latest example of several Chinese companies that have selected Arkansas because of these relationships as well as our skilled workforce and cost of doing business.”

In May, Shandong Ruyi Technology Group announced that it would invest $410 million to remodel the former Sanyo manufacturing facility in Forrest City into a textile factory that will eventually employ about 800 people.

Meanwhile, Shandong Sun Paper Industry is building a $1.3 billion pulp mill plant in Arkadelphia (Clark County) and expects to employ 250 people. Garment maker Suzhou Industrial Park Tianyuan Garment Co. is spending $20 million to build a factory in Little Rock, creating 400 new jobs. And Pet Won Pet Products is investing $5 million to put a pet treats manufacturing facility in Danville, creating 70 jobs. 

Hutchinson announced that Tuesday he’ll embark on this third trade mission to China. He plans to visit Risever’s operations, as well as promote Arkansas agriculture, explore new business opportunities and visit with other Chinese firms that are investing in the state.

Hutchinson cited Arkansas’ low unemployment rate, 3.5 percent. But he said it was important to continue to seek new business opportunities in a fast-changing global economy.

“… You’ve got stay investing and recruiting new industry and expanding those that are here and keeping our workforce up with all the skills that are needed for this century,” he said.

The Risever project has qualified for the following incentives, according to the Arkansas Economic Development Commission:

• Create Rebate, an annual cash rebate based on the number of jobs at the plant.
• Tax Back, which provides sales tax refunds on building materials, taxable machinery and equipment associated with the project.
• A $1 million grant from the governor’s Quick Action Closing Fund.
• A $100,000 training grant to provide training for workers.

KASU Radio’s Video of the Risever Announcement