Fortis expansion to result in 77 new jobs

The Fort Smith plant expansion Fortis Plastics announced in February will create 77 new jobs, according to a city of Fort Smith memo.

Fortis, previously operating as Atlantis Plastics, is located at 428 S. U St., and employed about 300 full- and part-time workers prior to Thanksgiving of 2008 when about 70 (40 temp workers and 30 full-time workers) were given layoff notices after the holiday break.

The company is applying to quality for a Sale Tax Rebate program offered by Arkansas for expanding businesses. To qualify for the rebate, companies must obtain resolutions of support from the local governing authority — the city of Fort Smith, in this case.

Fort Smith City Directors will consider the resolution at June 2 board meeting.

“The maker of plastic moldings for Whirlpool is diversifying its customer base, and anticipates adding 77 new jobs to its Fort Smith location,” Ray Gosack, deputy city administrator, noted in an explainer memo to City Administrator Dennis Kelly. “The staff recommends approval of the resolution. The incentive will support one of the board’s top priorities: economic development and jobs creation.”

Erica Bartsch, a spokeswoman for the company, said Friday afternoon it would be Monday before she could answer specifics — When the jobs would be created? Timeframe for physical expansion? Costs? etc. — about the expansion.

New jobs — especially in the manufacturing sector — would be a welcome change of news for the Fort Smith region. In the Fort Smith metro area, manufacturing employment fell from 27,100 in March 2007 to 23,100 in March 2009, a 14.7% decline. The loss of regional jobs in the past year has caused the unemployment rate for the Fort Smith region to jump from 4.3% in March 2008 to 7.3% in March 2009.

Fortis is a subsidiary of New York City-based Monomoy Capital Partners, and was formed in late 2008 when Monomoy purchased the plastics division of Leggett & Platt and the molded plastics division of Atlantis Plastics.

Monomoy Capital Partners is a $280 million private equity fund that makes controlling investments in middle market companies, according to its literature. The Fund has completed 24 transactions during the past three years and owns 10 businesses that employ more than 8,000 people. The company most recently bought a specialty baking company (Atkins) in Noblesville, Ind., that makes cheesecakes, layer cakes and brownies for the food service industry and national restaurant chains.