January 27, 2010
City of Vidalia Announces Louisiana Elastomer, LLC $4 million Expansion
The City of Vidalia and Louisiana Elastomer, LLC (LAEL) announce the construction of a 36,000 square foot building in the Vidalia Industrial Park. D. Michael Wells, President/CEO of Louisiana Elastomer, LLC stated, "When we made the decision to expand our operation, we couldn't think of anyone better to do business with than the City of Vidalia." The new building will be located adjacent to the existing LAEL plant and will produce and house the treatment chemical compounds used in the recycling process. "Producing this product in house will allow us to save on transportation cost, and most importantly on time," stated Wells. Wells went on to explain that LAEL currently brings in the treatment compound from Minnesota. Purchasing from Minnesota presents logistic problems, especially in the winter, adds to our freight costs, and LAEL can self-manufacture at a lower cost. When delays occur LAEL is unable to process the rubber.
With this new plant, LAEL will make a capital investment of approximately $4 million and will create an additional 86 jobs by 2012 that will pay above the parish average wage. "We initially announced approximately 400 new jobs over a period of 10 years. The company is still planning to create those jobs over a period of time, but future expansions & facilities may be necessary to do so. Therefore, we decided to break the project down and focus on this expansion, which will ultimately create 86 jobs by 2012," says Heather Malone, Director of Concordia Economic & Industrial Development District. "86 quality jobs and $ 4 million capital investment in the Miss Lou will definitely boost our economy," stated Richard Young, Chairman of Concordia Economic & Industrial Development District.
The City of Vidalia is leasing the land and the building to LAEL, which required the City to go before the bond commission in order to build the building. The lease agreement is for 25 years and LAEL will have an option to buy the building once the lease is up. The building will be 36,000 square feet and will be located next to LAEL's existing building on DA Biglane Road. "We initially planned to build this facility in the old Industrial Park next to BASF, but after much discussion it was decided that it is more cost effective to the company to build this facility as close to their existing plant as possible," said Mayor Hyram Copeland, City of Vidalia. "We are excited that LAEL decided to expand their operations in Vidalia and we look forward to continuing and growing our relationship with the company," expressed Copeland.
Louisiana Elastomer's existing 50,000 square foot building sits on 25 acres in the Vidalia Industrial Park and employs 35 residents of the Miss Lou. LAEL currently runs three recycling lines: EPDM, Butyl and Tires and ships the final product to manufacturers in China and Sri Lanka to name a few.
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Home > News & Announcements > City of Vidalia Announces Louisiana Elastomer, LLC $4 Million Expansion
