Marketing / Jobs and Investments Company Announcements
While many active recruitment projects were put on hold and others abandoned altogether, many companies continued to present expansion and relocation opportunities. “Our pipeline most definitely changed dramatically, not as much in the numbers, but in the processes and project mix,” Economic Development Director Michael Parker said. “We had several virtual site tours and were asked to put together more video tours to email to the client or our point of contact for the client, such as a consultant, the state ECD, or TVA. And while many advanced manufacturing projects, particularly aerospace and automotive, seemed to pull back the reins on new projects, food processing really picked up during the third and fourth quarters of the year.” NETWORKS and its partners also worked on a great many expansion and retention projects while continuing to grow its pipeline of prospects. “It is pretty much a universally accepted number that about 80 percent of job growth comes from existing businesses and industries. That is why effective economic development programs must have an existing industry component,” Economic Development Consultant Ronnie Price, who oversees NETWORKS’s existing industry program, said. “When you have an event that causes a big market downturn, those existing industries become a community’s lifeblood. The retention wins won’t ever make the headlines but are a big part of where we spent our time in 2020. Fortunately, we were able to also work with some of our companies on new opportunities for growth and success.”
Domtar When Domtar asked local elected officials as well as local and state economic developers to a meeting in April to advise them of their plans to temporarily shutter the Kingsport paper mill due to a dramatic drop in business as a result of COVID-19, the underlying fear for all was that the move would ultimately be made permanent. In July, those concerns became reality when the company informed the same group that it had made the difficult choice to abandon hope that the copy paper industry would come back to the point of keeping this plant viable. The news came with an opportunity though, as the company’s executive team also said that they were expanding their product line to include containerboard, meaning that the Tennessee team had the opportunity to compete with at least one other potential location for the facility. Several issues needed to be addressed and creative solutions developed: how to handle an increase in trailer truck traffic in and out of a facility in the heart of the city’s downtown, the relocation of Cloud Park to expand parking and set-up space needed for the mill’s transition, and creating a competitive business case to offset lucrative incentives being offered by other states that were trying to land the project. And all of these issues had to be addressed within a very short timeline. “It was inspiring to see everyone get on board and do whatever had to get done,” NETWORKS CEO Clay Walker said. “Chris McCartt (Kingsport City Manager) really took the lead and kept the effort organized. We called on anyone who could help, so many people were involved in the effort to keep this company here and each worked with absolute dogged determination and resolve, all the while acting responsibly with public resources, finding resolutions to the company’s issues while protecting the resources of the city, state, and thus the taxpayer. “We called on our state representatives to help pave the way in accessing state resources and paint the picture of how vital Domtar has been to our community and region for more than 100 years. Senator Jon Lundberg, Representative Bud Hulsey, and Representative John Crawford drove to Nashville and were integral in putting together the pieces of this puzzle,” he continued. “County Mayor Richard Venable and the County Commission, Kingsport Mayor Pat Shull, and the Board of Mayor and Alderman did everything and asked every question and considered every consequence along the way. Without everyone responding at the level they did, I don’t know how we could have put this together.” In August, Domtar announced that it would invest about $350 million in the conversion of the plant where it will employ 150 people. The decision came after the company and the city worked out a land swap arrangement, TDOT and the city worked out route improvement solutions, and both the state and the city and county worked out an incentive package that included training assistance and a Payment in Lieu of Tax arrangement on the property improvements. “Domtar is taking decisive action to restructure its business in a way that allows the company to remain competitive in light of current business conditions that have been adversely impacted by the Coronavirus pandemic,” said Domtar President and CEO John Williams. “Repurposing the Kingsport mill is consistent with Domtar’s long-term strategic plan on converting high-quality assets to match market conditions, positioning the company for the future.” For more details of the uniqueness and complexity of this project, we recommend reading more under the News & Events, Q3, section of our website at networkstn.com.
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