Conway Development Corp. announced Wednesday that Kimberly-Clark will spend $25 million to expand its Conway facility.
According to Jamie Gates, vice president of government affairs, the city of Conway issued industrial revenue bonds to support the expansion activity at the facility over the next three years.
“The $25 million would usually be subject to property tax, but with the incentive, the company is subject to what ends up being one-third of the property taxes on the expansion project,” Gates said. “That, along with sales tax rebates on eligible manufacturing equipment at the state and local level make this a meaningful incentive to the company.”
According to Gates, the investment will go toward additional production capacity for products not currently being produced in the United States.
Additional investment is expected to be used for the modernization of technology and product improvements to existing production lines at the Conway facility.
Though it is early in the project to determine exactly how many additional positions will be added locally, John Pownall, Conway facility manager, said in a release provided by the CDC that more than 40 are expected.
“The city of Conway has enjoyed a 40-year relationship with Kimberly-Clark. This expansion represents another major commitment by Kimberly-Clark to Conway and Central Arkansas. We are happy to have played a role in this expansion,” Mayor Tab Townsell said in the release.
“Kimberly-Clark was the Conway Development Corp.’s first major tenant in the Conway Industrial Park. It is encouraging to see yet another Conway manufacturer choosing to invest and expand. Kimberly-Clark has been an employer of choice in Central Arkansas for decades, and we are pleased to have continued a partnership that started 40 years ago,” said Bill Adkisson, chairman of the Conway Development Corp.
The announcement of the expansion comes as the company celebrates its 40th anniversary in the community.
(Staff writer Courtney Spradlin can be reached by e-mail at email@example.com or by phone at 505-1236. To comment on this and other stories in the Log Cabin, log on to www.thecabin.net. Send us your news at www.thecabin.net/submit)