EDGE Assists Local Manufacturing with Expansion
EDGE Board of Directors approved two Jobs PILOTs for J.M. Smucker, LLC and Cleveland Track Material, Inc.
J.M. Smucker has been evaluating options for expansion to produce Jif Creamy Clusters (granola snacks with peanut butter centers), renovation of facilities to accommodate this production, and installation of related manufacturing and packaging equipment.
For the six-year Jobs PILOT terms, Smuckers will create 25 Net New Jobs with an average base salary of $43,244 excluding benefits and invest $8,880,000 in the City of Memphis at a 135,087 square foot facility located at 4740 Burbank Road. The total project investment includes $3,280,000 for renovations to the existing structure and $5,600,000 for new personal property. EDGE Staff projects $1,462,267 in local total tax revenues to be received during the PILOT term of this project and a $739,855 benefit to the company.
“The PILOT would help us expand the Memphis facility and become more competitive with other larger Smuckers facilities, mainly the Lexington, KY plant,” said Carlos Manning, JM Smuckers Plant Manager, Memphis Operations. “With the PILOT, we will be able to add additional manufacturing lines at the plant in order to produce Jif Creamy Clusters, a Memphis-only produced product.”
In addition to the JM Smuckers PILOT, the EDGE Board of Directors approved a Jobs PILOT for Germany-based Cleveland Track Material, Inc. Cleveland Track has been reviewing alternate locations outside of Memphis to expand production. While the Cleveland, Ohio facility is the company’s largest U.S. operations with skilled labor in place, the Memphis facility is strategically located and is only about 10% utilized.
For the seven-year Jobs PILOT terms, the company will create 51 Net New Jobs with an average base salary of $47,380 excluding benefits and invest $6,030,000 in the City of Memphis at the facilities located at 391 East Mallory. The total project investment includes $3,195,000 for renovations to existing structures and $2,835,000 for new personal property. New personal property at these sites will be included the PILOT and the value of real property renovations to structures on these sites will be included in the PILOT. Staff projects $2,176,616 in local total tax revenues to be received during the PILOT term of this project and a $653,465 benefit to the company.
“Every time a company expands, we view it as evidence of our thriving business community,” said Al Bright, EDGE Board Chairperson. “Both Smuckers and Cleveland Track have been longstanding Memphis employers and partners as the manufacturing and food processing industries have changed throughout the Midsouth.”