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Area Spotlights

Fair Weather Ahead

It may be early in the season for county fairs, but it’s not hard to find job fairs in Louisiana, Site Selection’s Top Competitive State for 2010 (see the May 2011 issue). In late June, KPAQ Industries LLC held a job fair in Baton Rouge as it prepares to hire 250 for an expansion at its reopened St. Francisville paper mill in West Feliciana Parish.

Ormet Primary Aluminum Co. reports that more than 3,000 people attended recent job fairs for its facility in Burnside, La., on the Mississippi River in Ascension Parish. Powerhouse operators, laboratory technicians, production workers and operators are among the job titles needed when the idled alumina production plant reopens and puts 240 to work.

“The job fair exceeded my expectations in terms of numbers and quality of applicants,” said Darrel Harriman, Ormet’s Burnside Alumina Plant Manager. Mike Eades, president and CEO of the Ascension Economic Development Corp., added this observation: “This is the most impressive turnout for a job fair that I have ever witnessed. It sends a strong message that there is ample labor available in Ascension Parish. Typically, hiring managers like to see an applicant-to-vacancy ratio of five or six to one. The turnout for the Ormet positions is more than twice this standard.”

Upon the facility’s completion, Ormet is expected to become one of the top 10 economic-driver firms in Ascension Parish, as well as one of the top 150 economic-driver firms statewide out of more than 100,000 existing employers in Louisiana. The spin-off effect of the re-opening of the facility, which will operate 24 hours a day, seven days a week, is expected to create an additional 1,050 indirect jobs in the area.    

The job fairs were conducted in conjunction with the Louisiana Workforce Commission and Louisiana FastStart, the work-force solutions arm of Louisiana Economic Development. Referring to the Workforce Commission and FastStart, Eades stated, “We are extremely fortunate to have such high-level, professional resources available to our business community.”

Amite Foundry Ready To Expand

Meanwhile, Bradken Engineered Products held a job fair in Amite, north of New Orleans, in late March for welders, machinists, crane operators and other workers for its expanded foundry that will need about 170 new employees in 2012. The expansion project represents a capital investment of US$18.1 million, and will retain 179 jobs and create 171 new direct jobs at an average annual salary of $37,500, plus benefits. Louisiana Economic Development (LED) estimates the expansion will also result in the creation of 223 new indirect jobs, for a total of nearly 400 new jobs, along with nearly $5.3 million in new state tax revenues and nearly $3.2 million in new local tax revenues over the next 10 years.

“Bradken’s decision to expand its foundry is great news for Amite, Southeast Louisiana and our entire state,” said Gov. Bobby Jindal. “This expansion underscores the confidence that major companies are placing in our work force and in our business climate. We have made retaining and expanding Louisiana’s existing businesses our top economic development priority since taking office in 2008, and Bradken’s expansion is another example of our commitment to making Louisiana the best place in the world to find a great job and pursue a rewarding career.”

Tom Armstrong, Bradken’s chief operating officer, added, “This expansion of the Amite facility will enable Bradken to increase its capabilities and capacity to produce customized steel cast products, and to continue to grow with our strong customer base. The expansion includes extending the foundry building and installing key manufacturing equipment, such as molding equipment, cranes and furnaces. The decision to choose the Amite facility for this expansion was made easier due to our existing excellent work force base and the assistance and benefits provided by Louisiana Economic Development.”

The expansion will help the company make more customized metal products. Major investments planned for the expansion include mixers, blast tool upgrades, a 50-ton crane used for moving large pieces of raw steel into the melting hoppers, heat treatment capacity expansion and an expanded foundry bay and metal-refining capabilities.

LED is assisting Bradken in the expansion project by offering work-force training through Louisiana FastStart, a 5-percent to 6-percent rebate on new payroll expenses and sales taxes from the Quality Jobs Program, a 5-percent refundable tax credit on capital investment from the Retention and Modernization Program and property tax abatement for materials used in new manufacturing from the Industrial Tax Exemption Program.

Equipment Investment Retains 800+ Libbey Jobs

In June, Libbey Glass announced a $9-million capital investment for modernization of its 525,000-sq.-ft. (48,800-sq.-m.) manufacturing plant in Shreveport. The project includes renovation of the facility’s glassmaking furnace and the purchase of related equipment.

The project will secure 814 existing jobs at Libbey Glass with an average annual salary of $34,000, plus benefits. Louisiana Economic Development estimates the 814 jobs support another 1,520 indirect jobs in the Northwest Region. LED estimates Libbey, one of the region’s largest manufacturing employers, also will produce $60 million in state tax revenue and $16.9 million in local tax revenue over the next 10 years. Libbey Glass will begin making the Shreveport plant improvements later this year, and the project is scheduled to be completed by the end of 2012.

“Libbey Glass is one of the leading producers of glass tableware products in the Western Hemisphere,” noted Gov. Jindal at the announcement on June 17, “and we are proud to work with them in continuing their support of this community, dating back to 1922.”

LED began working with Libbey officials in 2009 to identify opportunities to retain and expand the company’s presence in Shreveport. To secure the project, LED offered the company an incentive package that includes the state’s Retention and Modernization Program, which provides qualifying companies a 5-percent refundable tax credit on capital upgrades to existing facilities. Libbey’s Shreveport site earned the capital investment in competition with five other U.S. and international sites. The company also is expected to utilize the Industrial Tax Exemption Program.

“Libbey relies heavily on the partnerships we have with communities and our host states,” said John Meier, CEO of Libbey, Inc. “The cooperation we have received here in Louisiana has been meaningful over the years, and this latest important incentive is but another example of our joint efforts together. We are proud to be partners with the State of Louisiana, and proud to be a meaningful part of the Shreveport community.”