by William White | September 4, 2013 12:22 pm
Strum Ruger (RGR) purchased a 220,000-square-foot plant in Mayodan, NC on Tuesday.
This is the first manufacturing expansion Ruger has made since 1988. The new plant will create a minimum of 473 jobs. Ruger will invest $25.75 million on the plant within the next five years. $4.25 million will go toward renovating the plant and $21.5 million will be used on new machinery and equipment. The investment has made the company eligible for $9.46 million in performance-based incentives from NC’s Job Development Grant. Rockingham County commissioners voted on Tuesday to approve Ruger for $942,942 in performance-based incentives that would be given out over a 14-year period. The Maydon Town Council will discuss the possibility of providing Ruger with $853,524 in performance-based incentives over a 14-year period. The company could start receiving these incentives as soon as February 2015. Ruger will have to meet its investment and job targets each year, otherwise the incentive payments will be reduced, reports the Winston-Salem Journal.
The new plant is expected to begin production during the first quarter of 2014.
Source URL: http://investorplace.com/2013/09/strum-ruger-announces-major-nc-expansion/
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