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News

PLANT EXPANSIONS BREATHE LIFE INTO AREA'S ECONOMY
NEW JOBS GIVE MANY RESIDENTS HOPE FOR FUTURE

21 April, 2005

PORT HURON, Michigan --- Ken Hyatt walked between the rows of machinery Monday afternoon at Mapal Inc.

"If you look around, probably half of the people working right now have been here less than six months," said Hyatt of Saginaw, a padded-tool supervisor who started work at the plant in December.

But the new faces at the plant aren't because of a high turnover rate. They are the result of an expansion.

Last April, Mapal was one of three St. Clair County manufacturers that announced plans to expand and create new jobs in the area. Combined, Mapal, Shawmut Corp. and GMA Cover Corp. expected to create more than 130 new jobs.

While each company is at a different stage of its expansion, all expect more jobs to be on the way, which is welcome news for the area. According to the Michigan Department of Labor and Economic Growth's most recent statistics for February, St. Clair County had an unemployment rate of 9.9%, while Port Huron's was 14%. The state average is 6.9%.

"Given today's economic conditions, these expansions definitely have been a bright spot in some very difficult economic times," said Doug Alexander, executive director of the Economic Development Alliance of St. Clair County. "It's good news when there really hasn't been that much good news."

The EDA helped put together incentives packages for all three companies.

Mapal Inc.

Last April, officials at Mapal, which specializes in precision cutting tools, were faced with the tough decision of expanding their Port Huron Township operation while closing a plant in New Jersey.

The German company invested $1.5 million in new machinery and brought in equipment from the New Jersey plant and a plant in Germany. Officials expected the new equipment would create 35 new jobs.

That figure has been surpassed.

Robert Reed, vice president of operations, said the company has added 45 new jobs to the existing 90 employees. About 20 jobs also were transferred to the plant from New Jersey.

Reed said production for the first quarter is up more than 100% from last year and is up 75% without even counting the work that has come from New Jersey.

Chief Executive Officer Andrew Tanner expects to talk with the owner of Mapal in June about another expansion.

Rick Neely, 44, of Port Huron found himself a new job because of Mapal's expansion last year. He began working as a welder and brazer at the plant in October.

Neely had worked at Huron House in Port Huron for about three years, and he wanted a change. He had heard good things about Mapal and thought it seemed like a secure place to work.

"I wanted someplace secure, someplace where I wasn't worried the operation was going to be moved to Mexico," Neely said. "I felt that here, felt like they're here to stay and grow."

Kasia Taylor also had heard good things about Mapal and had been trying to get hired for more than a year. About a month ago, she started working full time as a custodian.

She had been working part time for Head Start and as a waitress, but she was looking for a full-time job with benefits.

"I was so relieved to find this," said Taylor, 19, of Port Huron. "There's no more searching for a job, which is so stressful because there's nothing out there right now."

GMA Cover Corp.

GMA Cover Corp.'s in-city move has created 40 new jobs for the area, and more are on the way.

Last April, the company, which makes camouflaged covers for military use, announced it had bought the former Waltec Forgings Inc. building at 2440 20th St. in Port Huron. GMA Cover Corp. had been leasing the building at 1314 Cedar St.

Along with the move came an investment of $2 million of additional machinery and equipment for its new location. Company officials estimated 25 jobs would be added to the existing work force of 65.

"We've been able to add a couple of different product lines," company President Brian Keller said. "That's really what's allowed us to create the new jobs."

Keller also estimates the plant will add another 15 jobs in the next couple of months.

The Canadian company, which opened a plant in Port Huron in 1992, also has a facility in Guelph, Ontario.

Shawmut Corp.

Auto-parts company Shawmut Corp. announced plans last April 26 for a $2.75 million expansion that would add 72 jobs to its 90-person staff.

While the plant hasn't undergone the expected physical expansion, it has expanded in terms of staff and production, said Justin Keppy, director of Michigan operations for Shawmut of Massachusetts.

Keppy said more than 50 jobs have been created at the Port Huron plant since last April's announcement, and he expects another 25 to 30 new jobs to be added within the next six months to a year.

"It's been a good thing that we've been able to bring more jobs to the area without having to invest in bricks and mortar," said Keppy, who expects the plant to physically expand within the next year.

The new jobs are a result of the plant's venture into a different area. Die cutting and forming of covering materials for visors, sunroof shades, headliners and other interior automotive applications now are done at the plant, which had dealt mainly with laminated interior trim parts. Keppy said this product expansion has led markets to recognize Shawmut as more of a one-stop place for their supplies.

John Williams was unemployed for about six months before starting at Shawmut in December. Williams, 54, of Port Huron heard from a friend the company was hiring and decided to put in an application.

Williams, a press operator at the plant, had worked in a variety of fields before, including automotive and human resources. But even his past experiences didn't help in the tough job market.

"It's a tight market out there, no matter what field you're looking in," he said. "I heard what a great place this was to work at, and I thought there was the potential for growth. I consider myself lucky to be working here today."

Author: Erin Kosnac
Source: Times Herald
Associated URL: www.thetimesherald.com                                      
Source Date: April 21, 2005 

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