JONESBORO, AR (KAIT) - A Jonesboro manufacturer is expanding and creating new jobs in the process.
FMH Conveyors announced it will construct a new 195,000 square-foot manufacturing facility, according to a news release from Arkansas, Inc.
The $12.5 million project will also create 110 new jobs.
The manufacturer has produced material handling equipment for fluid truck loading and unloading applications for over 30 years in Jonesboro.
The facility will be located on Highway 18, past the Butterball facility. It will be owned by H&M Development Company and leased to the manufacturer.
"FMH Conveyors has experienced tremendous growth over the past several years, and our success is greatly attributed to our commitment to meeting our customers' equipment and service requirements," said Mike Kachmer, president and CEO of Duravant, the parent company of FMH Conveyors said as part of the Wednesday release.
"We are investing accordingly to ensure the highest standards of quality and delivery for our customers and we are excited to build upon the local talent, resources and partnerships available here in Arkansas," Kachmer concluded.
Some incentives for FMH Conveyors includes receiving $1 million from the Governor's Quick Action Closing Fund for infrastructure improvements and equipment purchases at the new facility.
Plus, a tax rebate will provide a cash rebate equal to 3.9% of payroll associated with the new jobs at the Jonesboro location for 10 years. There will also be sales tax refunds on building materials, taxable machinery and equipment associated with the expansion project.
FMH Conveyor President Kurt Huelsman said they are excited to expand in Jonesboro.
"Jonesboro presented the right formula both from a workforce perspective, the central location, the resources available and the support we got from the community," FMH Conveyor President Kurt Huelsman said.
Jonesboro Chamber of Commerce President Mark Young said there were several factors that appeal to FMH.
"Being able to have a piece of property that had all the infrastructure in place, that is always a key for companies. I think it is important moving forward that we have great resources when it comes to training," Young said.
Young said the training at Arkansas State University training center is a great tool for companies like FMH.
Huelsman said they will break ground on the project next week and hope to have it built in six months.
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