GSA Manufacturing Supply Chain Report 5.28.18

Keurig to invest $350M in Spartanburg County Staff Report

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eurig Green Mountain Inc., a producer of specialty coffee and single-serve brewing systems, will invest $350 million in a new roasting and packaging facility in the Tyger River Industrial Park-North in Moore, creating 500 new jobs.

“We couldn’t be more excited that Keurig Green Mountain has chosen to call Spartanburg County home,” said S.C. Gov. Henry McMaster, in a statement.

“The 500 new jobs this investment means for our people will make a big difference in the lives of South Carolinians, and I congratulate this great company on all they’ve achieved.”

The company’s new production facility will primarily house coffee roasting and packaging for Keurig’s single-serve K-Cup pods, along with the potential to support beverage distribution and warehousing in the future, according to a news release.

“The Keurig Green Mountain business continues to grow. As we plan for the future, we’re pleased to locate our newest facility in Spartanburg County to support our growth,” said Richard Jones, Keurig Green Mountain chief supply chain officer, in the release. “We view the region’s talented employee base and attractive business environment as the right place to invest.”

The Tyger River Industrial Corridor, totaling 1,675 acres, consists of three parks along Highway 290 in Spartanburg County. With industrial-grade utilities in place and access to both Interstate 26 and Interstate 85, the parks are home to

companies such as Toray, Kobleco, Ritrama, Sterling Contract Packaging, Magna Seating and now Keurig. The parks are approximately 10 miles from Greenville-Spartanburg International Airport and the Inland Port Greer. There are 800 acres left for industrial development in the parks, according to a news release from Pacolet Milliken “We are excited to welcome Keurig to our premier Tyger River Industrial ParkNorth and proud of the pivotal role that our team continues to play in working with the state and local economic development groups to bring new investments and jobs to our community,” said Richard Webel, president of Pacolet Milliken, in the release.

Clay Adams, executive vice president

for real estate for Pacolet Milliken, said the six manufacturing companies in the Tyger River Industrial Corridor collectively “bring thousands of jobs and over a billion dollars of investments to the Upstate.”

“The caliber of the companies that choose to locate within our parks speaks to the strength and quality of the parks we’ve worked diligently to create. Firstrate infrastructure and utility services combined with excellent proximity to interstates and other Upstate manufacturers set the Tyger River Industrial Parks apart,” Adams said in the release.

The Coordinating Council for Economic Development, which is administered by the S.C. Department of Commerce, approved job development

credits related to the project, as well as a $3,850,000 grant to Spartanburg County to assist with the costs of site and infrastructure improvements, the release said.

“South Carolina’s favorable business environment, skilled workforce and unparalleled infrastructure offer a recipe for success. I’m excited to welcome Keurig to Team South Carolina, and we look forward to seeing the difference these 500 new jobs will make in the community,” S.C. Secretary of Commerce Bobby Hitt said in the release.

Spartanburg Economic Futures Group Board Chairman Ethan Burroughs said the county “works diligently” to help and support new industry, adding that “we are confident that Keurig, as an industry leader and a globally respected brand, will thrive and find ample opportunity in our international-friendly Upstate community.”

David Britt, chairman of Economic Development Committee of Spartanburg County Council and board member of the Spartanburg Economic Futures Group, told GSA Business Report that Keurig Green Mountain’s decision to locate in Spartanburg County shows “we are a place to build things.” He said work on the site in Tyger River Industrial ParkNorth began the same day the announcement was made. A facility of a least 1.5 million square feet will be constructed for Keurig, he said.

Britt credits BMW Manufacturing for the manufacturing growth in Spartanburg County. He said that over the last 25 years the county has experienced $17 billion in investment and more than 50,000 new jobs.

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MANUFACTURING & SUPPLY CHAIN REPORT

Contec acquires building in Spartanburg County Staff Report

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ontec Inc. has purchased a 362,774-square-foot distribution center in Spartanburg County, which will free up space to create new jobs. CEO Jack McBride announced the transaction in a May 2 news release.

Contec will use half of the building as a distribution center with the other half being leased to another local company that services BMW Manufacturing, according to the news release. The new building will clear space in the company’s Wingo Park facility for several new production lines, which will create up to 20 new jobs, the release said.

Contec Inc. manufactures contamination control products for manufacturing environments in the pharmaceutical, life sciences, medical device, health care, automotive, aerospace and recreation/ outdoors industries worldwide, according to the news release.

Located in the Flatwood Industrial Park nine miles from the company’s two manufacturing facilities, the building is convenient to both Interstate-85 and Interstate-26, as well as the South Carolina Inland Port.

With 38 dock bays and room for expansion, the building will house shipping and receiving operations and serve

“The distribution center will need to be built out and customized for our purposes. We expect this to be completed at the end of Q3.”

Avi Lawrence president, Contec

as storage for both raw materials and finished goods, the news release said.

The acquisition of the building will make room for additional manufacturing capacity in the company’s Wingo Park facility.

“The distribution center will need to be built out and customized for our purposes. We expect this to be completed at the end of Q3,” Contec President Avi Lawrence said in the release.

Contec has more than 700 employees and has manufacturing facilities in Spartanburg, China and France, the new release said.

Kemper Corp. investing $1.9M in Union facility Staff Report

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emper Corp., a manufacturer of cargo securement products, is investing $1.9 million in production operations it plans to open in Union. The project is expected to create 28 new jobs.

Located at 100 Times Blvd., Union, the company’s newly-renovated, 18,000-square-foot production facility is expected to activate in the third quarter of 2018, according to a news release.

“Kemper Corp. is delighted to be relocating to a business-friendly environment where we feel our small business can have a positive impact on the community,” Cathy Harter, Kemper Corp. president, said in the release. “We are appreciative of the efforts by all involved in this relocation.”

“Kemper Corp. is delighted to be relocating to a business-friendly environment .”

Cathy Harter president, Kemper Corp.

The Coordinating Council for Economic Development approved job development credits related to the project.

“We are very excited about Kemper Corp. deciding to relocate their operation to Union County. This reinforces that Union County is a great place to own and operate a business,” said Union County Supervisor Frank Hart.

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Forbes ranks Michelin as America’s best large employer Staff Report

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ichelin has been ranked No. 1

by Forbes magazine among the best large employers in the U.S. in 2018. Now describing itself as a “sustainable mobility company,” the recognition highlights Michelin’s commitment to providing a better way forward for its employees, customers and communities, says a news release from Michelin.

“At Michelin, our dedication to our

Milliken makes Forbes list of best employers Staff Report

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illiken & Co., a Spartanburg-based company with worldwide operations in textile, specialty chemical and floor covering manufacturing, has been named among America’s Best Mid-Size Employers in 2018, according to a news release.

Compiled by Forbes magazine, America’s Best Mid-Size Employers recognizes highly rated employers with 1,000 to 5,000 U.S.-based employees each year.

“This is truly an honor to receive,” J. Harold Chandler, chairman, president and CEO for Milliken & Co., said in the news release. “For Milliken, associate engagement and empowerment enable the success we achieve as a diversified manufacturer. We are pleased to be considered an employer of value, and we see this recognition as a reflection of our firm commitment to our associates, first and foremost.”

In collaboration with analytics firm Statista, Forbes asked 30,000 American employees – 82% full-timers – working for large firms or institutions to participate in a survey about their own employers and about other employers based in the U.S. The top 500 mid-size employers – representing 25 different industries – were highlighted based on participant responses.

Milliken has 35 manufacturing facilities on four continents. The company, established in 1865, has 7,000 employees, according to information posted on its website. The company has more than 2,200 U.S. patents, 5,000 worldwide.

A complete list of America’s Best MidSize Employers is available on the Forbes website.

workforce is best defined by two key words: We care,” David Stafford, chief human resources officer for Michelin North America, said in the news release.

“From candidate to new-hire to long-term employee, Michelin provides experiences that empower its people to make a difference and be proud of where they work.

Michelin is honored by this recognition.”

With more than 20,000 employees in the United States and Canada, Michelin attracts high-school and college students with hands-on learning experiences

through its Youth Apprenticeship program, Technical Scholars program and other internship and cooperative-education opportunities, the release said.

“At Michelin, people come for a job but stay for a career,” Stafford said in the news release. “In an increasingly competitive job market, Michelin understands the value of providing training and career development, a culture that also attracts mid-career transfers to Michelin because they are seeking opportunities to grow and advance. In fact, up to 50% of manag-

ers in Michelin’s manufacturing locations were promoted from hourly positions.”

In the annual listing from Forbes magazine, “America’s Best Large Employers” are ranked based on an independent survey from a sample of more than 30,000 U.S. employees working for companies with at least 1,000 people. Employees are given the opportunity to openly share anonymous feedback on a series of topics, including working conditions, salary, potential for development and company image.

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Koyo Bearings expanding Lonza to invest $46M in in Oconee County Greenwood expansion Staff Report

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Staff Report

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TEKT North America, a producer of bearings, driveline components, steering systems and machine tools, is investing $19.4 million to expand its existing Koyo Bearings production facility in Oconee County and create 56 new jobs, according to the S.C. Department of Commerce.

Located at 430 Torrington Road in West Union, the expansion will include an 18,000-square-foot addition to the existing 173,000-square foot plant, according to a news release.

“Koyo’s dedication to continuously improving our manufacturing processes shows we are a consistent employer of choice within Oconee County,” said Shawn Grimm, Koyo engineering facilities manager, in the release. “This is shown by our facility investment of over

“Koyo’s dedication to continuously improving our manufacturing processes shows we are a consistent employer of choice within Oconee County.”

Shawn Grimm manager, Koyo

$19 million over a two-year period to improve equipment, processes and our shop floor layout. We are proud of our location and glad to be part of this great area.”

Legal Summaries

These legal opinion summaries were compiled by the staff of South Carolina Lawyers Weekly, a product of BridgeTower media and sister publication of GSA Business Report. The opinions editor is Teresa Bruno.

U.S. District Court Civil Practice Class Action – Certification Denied – Real Property – Stucco Defects Where the stucco homes in question were built over a 10-year period with different building codes and industry standards, using three different types of stucco systems, individual issues pre-

dominate over the few common issues.

The court denies plaintiffs’ motion to certify a class and their alternative motion to remand to state court.

Plaintiffs allege three defects: lack of through-wall head flashing above doors and windows, lack of stucco control joints at the corners of doors and windows, and lack of an appropriate gap between the stucco exterior and the structure slab.

However, defects alone do not satisfy each requirement of Rule 23, FRCP. Defendants argue that many of the potential class member-homeowners are subject to a statute of limitations defense. Although plaintiffs contend that any statute of limitations issues could be dealt with in post-verdict proceedings, plaintiffs offer no further explanation

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onza is investing $46 million over the next five years in an expansion of its operations in Greenwood that will generate 30 new jobs, according to the S.C. Department of Commerce.

Located at 535 North Emerald Road in Greenwood, Lonza produces empty capsules and finished dosage forms for the global biopharma and consumer health and nutrition markets. To expand, the company is adding approximately 50,000 square feet of new manufacturing space, according to a news release. Construction is expected to be finished in the second quarter of 2019.

“Lonza is making a significant investment in our operations in Greenwood, further demonstrating our commitment to providing high-quality products and services to our customers worldwide,”

of what those proceedings would entail, and they fail to cite any authority supporting that concept. Moreover, plaintiffs fail to explain why defendants should be required to undergo a trial before being able to adjudicate an affirmative defense that might otherwise bar a trial.

Additionally, according to defendants, plaintiffs’ expert concedes that the determination of whether each house is defective largely turns on the elevation of each house. Moreover, to determine the extent of any resulting damages from these defects, destructive testing of each individual house would be required. As a result, the adjudication of liability and of damages would essentially be a trial within a trial for each house.

The court sees no advantage to trying

“Greenwood County is rich with talented, skilled individuals who will enhance our global and regional footprint Sven Abend COO, Lonza Specialty Ingredients

said Sven Abend, Lonza Specialty Ingredients COO, in the release. “Greenwood County is rich with talented, skilled individuals who will enhance our global and regional footprint, particularly in the area of consumer health and nutrition.”

The Coordinating Council for Economic Development approved job development credits, as well as a $300,000 Set Aside grant to Greenwood County to assist with the costs of site work and infrastructure improvements.

these cases collectively when each house will require such a substantial individualized inquiry.

Plaintiffs ask that the court remand this case in the event that it denies their motion for class certification. The court declines to do so. Every circuit that has addressed the question has held that post-removal events do not oust Class Action Fairness Act jurisdiction.

Motions denied.

Craft v. South Carolina State Plastering, LLC (Lawyers Weekly No. 002088-18, 8 pp.) (Patrick Michael Duffy, J.) 9:15-cv-05080; John Chakeris, Michael Seekings, Phillip Segui Jr. and William Jefferson Leath Jr. for plaintiffs; Christy See LEGAL SUMMARIES, Page 28

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LEGAL SUMMARIES, from Page 27

Mahon, Everett Augustus Kendall II, A. Victor Rawl Jr., Celeste Tiller Jones and Henry Wilkins Frampton IV for defendants. D.S.C.

Contract Civil Practice – Statute of Limitations – Continuing Breach Theory – Discovery Rule

original complaint, the court dismisses the case without prejudice, allowing plaintiff the opportunity to re-file her claim with a complaint that fully incorporates the facts and arguments she raises in her response to the motion to dismiss.

Dismissed without prejudice.

Deas v. Prudential Insurance of America (Lawyers Weekly No. 002-089-18, 7 pp.) (David Norton, J.) 2:17-cv-03016; Melissa Leila Louzri for plaintiff; Ian Morrison, Adam Noah Yount and James Derrick Quattlebaum for defendant. D.S.C.

Plaintiff should have known that its breach of contract claims (based on the marketing of hernia mesh as surgical mesh and failing to put patent applications in plaintiff ’s name) existed in the fall of 2010, but plaintiff did not file its claims until May 2015. The court rejects plaintiff ’s “continuing breach” argument and holds that plaintiff ’s breach of contract claims are barred by the three-year statute of limitations in S.C. Code Ann. § 15-3-530(1).

The court grants defendants’ motion for partial summary judgment.

Although the court was unable to find a South Carolina appellate court decision addressing the question of whether the continuing breach theory is applicable under South Carolina law to extend the life of a breach of contract claim, the court was able to locate decisions discussing the continuing breach theory. Upon review of those decisions, the court is persuaded that the South Carolina Supreme Court would conclude that, because breach of contract claims in South Carolina are subject to the discovery rule, they are not subject to the continuing breach theory.

Poly-Med, Inc. v. Novus Scientific Pte. Ltd. (Lawyers Weekly No. 002-08618, 17 pp.) (J. Michelle Childs, J.) 8:15cv-01964; Bernie Ellis, Marwan Zubi and Paul Peter Nicolai for plaintiff; Jennifer Mallory, Mark Dukes, Robert Hall McWilliams Jr. and Joseph Calhoun Watson for defendants. D.S.C.

Even though plaintiff wanted to pass a required qualification by simulation while the defendant-employer wanted him to train directly on plant equipment (which could only be done during the nighttime when plaintiff ’s sleep apnea prevented him from working), since defendant was still engaged in the interactive process of trying to accommodate plaintiff and only discontinued the process when plaintiff took early retirement, plaintiff has not shown that his working conditions were so intolerable that he was constructively discharged.

The court accepts the magistrate judge’s report and recommendation and grants defendant’s motion for summary judgment.

To the extent that plaintiff feared he would be terminated if he did not retire early, this fear does not constitute an intolerable working condition.

Baxley v. Savannah River Nuclear Solutions, LLC (Lawyers Weekly No. 002-090-18, 16 pp.) (J. Michelle Childs, J.) 1:16-cv-00901, substituted opinion; Jarrel Wigger and Joshua Timothy Howle for plaintiff; George Alfred Reeves III and John Hagood Tighe for defendants.

D.S.C.

Insurance

Labor & Employment

Long-Term Disability – ERISA – Claim Denial – Untimely Notice – Untimely Claim

Constructive Discharge – Rude Co-Workers

Because it appears that the defendant-insurer failed to timely respond to plaintiff ’s claim for long-term disability benefits under an ERISA-governed plan, plaintiff is warranted in bringing the case to this court to obtain her benefits under the plan.

However, defendant contends that plaintiff failed to timely submit her proof of claim. In response to defendant’s motion to dismiss, plaintiff contends, for the first time, that she requested claim forms several months before the time for filing a claim expired, but defendant’s administrator did not respond until the filing period had expired. Since none of the factual or legal allegations around this estoppel-based argument (or the letters requesting claim forms) are found in the

Plaintiff asserts that his co-workers yelled at him, were rude, and made comments about how he was “derelict” in performing his job and that his manager violated company policy by having a conversation about plaintiff ’s work performance. These assertions do not establish objectively intolerable working conditions; therefore, plaintiff cannot establish that he was constructively discharged.

The court accepts the magistrate judge’s report and recommendation and grants defendant’s motion for summary judgment.

Sanders v. Lowe’s Home Centers, LLC (Lawyers Weekly No. 001-085-18, 13 pp.)

(J. Michelle Childs, J.) 0:15-cv-02313; Eric Alan Sanders, pro se; Celeste Tiller Jones and Richard Morgan for defendant. D.S.C.

Labor & Employment ADA – Constructive Discharge – Accommodations Process – Early Retirement