Tennessee Governor Bill Haslam announced this afternoon that the new industry planning to locate in the Martin Industrial Park is Dong-A USA, a Korean private company.
Also known as DongAh Manufacturing Corporation, the company, which was founded in 1969, makes parts and accessories for automobiles. Its main clients are Hyundai, KIA and GM Daewoo. The company also manufactures various types of gaskets.
Tai Hong Sung is its chief executive officer.
Last week the Martin Industrial Development Board and its city board, followed by the Weakley County Commission, approved tax increment financing to help the company locate here.
According to County Mayor Jake Bynum, the company makes parts to be used in appliance and automotive manufacturing. The opening of an LG plant in Clarksville contributed to the company’s decision to locate here.
The LG plant is projected to be completed this fall, and Bynum said Dong-A USA is planning to begin production in December. They will locate in the speculative building on Travis Road in the Martin Industrial Park.
Tax increment financing allows local governments to lend money to help with industrial construction; the loan will be paid back with tax revenue over a 15-year period.
The business is projected to create 220 new full-time-equivalent jobs and an estimated 80 spinoff jobs. Bynum said the company’s pay rate is expected to exceed the average income in Weakley County.
Weakley County Property Assessor David Tuck said the projected tax appraisal of the plant when completed will be $5.7 million, which would produce $87,764 in real property tax in 2020. New equipment to be installed is estimated to cost $7.5 million, generating further tax revenues of $75,794.
The city and county pay the company a total of no more than $800,000 of these tax revenues over the 15 years of the loan..
Economic Development Director Ronnie Price said the company was also considering locating in Franklin, Ky., but the financing offered here closed the deal.
Bynum said the operation is expected to generate a $10 million payroll and $175,000 per year in sales tax.
“We’re excited at this great news in Weakley County. Ronnie Price, Mayor Brundige and I have worked diligently to entice this company to make its home here in Weakley County and Martin,” Bynum said.
“We’re extremely glad to welcome this company to the city,” Brundige said. “We feel it will be of great benefit to our citizens and to the company.”
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