LONOKE - Remington Arms Co. of Lonoke plans to hire 50 to 100 employees to work in a $32 million expansion, plant manager Jim Grahlmann said Thursday at a groundbreaking ceremony.
Construction started about two weeks ago on the 35,000-square-foot building, which is scheduled to begin production in June, Grahlmann said.
“We decided to build here because we’ve got a very good workforce here,” said Grahlmann, who has been plant manager in Lonoke for about two years. “And the local community has been a big supporter of what we do here.”
Grahlmann did not disclose what kind of ammunition Remington will manufacture at the plant.
“We have competition, and we’re really not wanting our competition to figure out what we’re doing,” Grahlmann said. Remington’s primary competition is Winchester and Federal Premium Ammunition, Grahlmann said.
Earlier this year, Remington won an $80 million military contract over the next 10 years to supply sniper rifles and ammunition for the U.S. Special Operations Command, Remington said in its annual report this year.
Grahlmann did not disclose the salaries for the new employees but said they would be competitive. Remington has about 1,300 employees in Lonoke. Remington’s existing employees at Lonoke will be allowed to apply for the new jobs, Grahlmann said.
In addition to the new employees, the $32 million investment will be important to Lonoke, said Michael Pakko, chief economist at the Institute for Economic Advancement at the University of Arkansas at Little Rock.
“When an existing employer makes a decision to expand, especially when that requires new capital investment and new construction, that is certainly a welcome vote of confidence in the local economy,” Pakko said.
The plant also brings additional construction jobs, Pakko said.
“The construction jobs won’t be permanent, obviously, but that is still an economic impact to the community,” Pakko said.
Remington Arms began production in Lonoke in 1969. It designs and manufactures ammunition for hunting and shooting sports, as well as for military, government and law enforcement uses.
“We make most of the main calibers [in Lonoke],” Grahlmann said. “We make most everything you can buy, whether you go to the trap field or personal defense or go hunting.”
Between 2 billion and 3 billion rounds of ammunition are made in Lonoke every year, Grahlmann said.
Remington, founded in 1816 in New York state, is owned by Freedom Group Inc. of Madison, N.C. Remington describes itself as the one of the oldest continuously operating manufacturers in the country.
Freedom Group has about 4,000 employees and had sales of $932 million last year.
Remington will receive $465,250 from the Governor’s Quick Action Fund to assist in laying the concrete slab and building the block wall for the building. The Arkansas Economic Development Commission will provide income tax credits based on the payroll of the new jobs and sales tax credits based on Remington’s investment. The tax credits will not be awarded until the completion of the building and hiring of the employees.
Burns & McDonnell of Kansas City, Mo., will design and build the expansion. Lemons Engineering Consultants of Cabot will handle the civil design.
Business, Pages 25 on 08/09/2013