Bekaert announces 100 new jobs in $32 million plant expansion in Rogers (Updated)

The Bekaert plant in Rogers, which has made steel cords for the tire industry since 1989, will soon see a $32 million expansion which will add 50% capacity and 100 new jobs over the next 18 months.

Gov. Asa Hutchinson was there for the announcement and credited Bekaert leadership and 300 workers in the plant for their ability to convince the company to invest in more Arkansas Jobs.

“Bekaert is a company with a global presence and could have chosen to expand at any location throughout the world,” said Hutchinson. “The fact that we are here today celebrating this expansion displays Arkansas’ continued momentum in job creation. Bekaert’s decision to grow in the state is recognition that Arkansas is prepared to compete and win in job creation.”

He said Arkansas’ state and local economic development teams are constantly working to retain manufacturing jobs, so any day 100 new manufacturing jobs are being created in the Natural State is a “great day.”

The local plant makes steel cords for tire manufacturers and it just recently ramped up production capacity from 50,000 tons a day to 54,000 tons. Once the expansion is complete the plant will turn out 75,000 tons a day.

Hutchinson said one of the reasons it makes sense for Bekaert to invest in the facility is because of its central geographic location within the U.S. He said that and the low unemployment rate is also good for recruiting more folks to the region who are looking for good paying jobs.

Matthew Taylor, CEO of Bekaert, said the global company has had a long and fruitful relationship in Rogers. He said tire manufacturing is beginning to pick up steam in the U.S. once again and as that happens Bekaert wants to grow its 30% marketshare among North American-based tire makers. Taylor said the support it continues to get from Arkansas at the state and local level is another reason it why it’s investing in more local jobs.

“We are investing in this because over the past 26 years we have built a really good business here. We have a huge amount of confidence at every level of production in this plant who turns out products that our customers are delighted with. … We are thrilled with our presence here in Rogers and Northwest Arkansas and want to continue this business for a long time,” Taylor said.

The Arkansas Economic Development Commission worked in concert with Bekaert providing two tax incentives for this investment, a 5% cash rebate incentives based on a company’s annual payroll for new, full-time, permanent employees, and InvestArk which is a credit program offsetting up to 50% of a businesses’ sales and use liability on taxable purchases in connection with this expansion.

Taylor said the plant expansion will begin in the next month and should be completed by year end. He said hiring the additional staff will take place as soon as the plant expansion is complete and new equipment is installed. Taylor said the jobs will range from entry level skilled manufacturing ($14 per hour) to a more technical skilled job ($19 per hour). He said training will be required for all new employees.

Rogers Mayor Greg Hines said it’s hard enough to retain manufacturing jobs so when there is investment and expansion in the manufacturing sector it’s great news. He said he remembers what a big deal it was when Bekaert located in Rogers in 1989 and today’s this $32 million investment is even bigger as the competition for manufacturing jobs has never been tougher.

The local plant employs around 300 workers and the 100 new positions are not only good for Rogers but for the entire region, he added.

Raymond Burns, CEO of the Rogers-Lowell Area Chamber of Commerce, said the expansion is near and dear to his heart because he worked on the team with now Sen. Jane English, R-North Little Rock, who was with the AEDC at the time to help recruit Bekaert to Rogers.

“Once the official announcement was made near this exact location in 1989, the agreement was signed on the hood of a car,” Burns said.

On a somber noted, three flags flew at half mast in front of the Bekaert facility – the Belgium, U.S. and Arkansas flags. The plant management opened the meeting asking for a moment of silence for those impacted by the terrorist attacks in Bekaert’s homeland yesterday.

Gov. Hutchinson’s remarks also included condolences for those killed and injured in Tuesday’s (March 22) terrorist attack in Brussels. He said the tragedy that occurred there emphasizes the connectedness of the world in that Bekaert is based in Belgium and its corporate leadership travels back through the Brussels airport.

Bekaert employs about 27,000 people worldwide and manufactures steel cord, steel wire, fencing, coating technologies and products for the energy industry. The company employs 1,600 in North American and has 10 plants and locations in the U.S. and Canada.

All of the fencing products made for the North American market are made in Van Buren.