Pilot Mountain company

to expand in Mount Airy

By Andy Matthews

andy@surrymessenger.com

APilot Mountain company that designs and manufactures armored vehicles will lease two former Kentucky Derby Hosiery buildings in Mount Airy where they plan an expansion that will ultimately create up to 200 new jobs.

Todd Tucker, president of the Surry County Economic Development Partnership Inc. said Friday afternoon that Granite Tactical Vehicles has outgrown its Pilot Mountain facility.

They need to expand to a facility to meet their demand for the military, Tucker said. Were looking forward to working with them.

On Monday, Surry County paid $951,000 for the two manufacturing plants on Newsome Street, which at one time were part of a Kentucky Derby Hosiery workforce of more than 800 employees at five plants in the city. The following day, according to court records, Granite Tactical Vehicles Inc. signed a memorandum of lease with the county, agreeing to lease both plants for for $1 a year for the next five years.

Granites clients include private security contractors, law enforcement and various government agencies.

In addition to foregoing the purchase cost of the two buildings, the company will receive combined city and county financial incentives of $115,814 over a five-year period. The company will make an estimated $3 million investment, create a $6.4 million payroll and generate $35,160 in combined city and county property taxes. A total of 114 new jobs will be created within two years, with that number increasing to 200 within three years.

According to the N.C. Department of Commerce, the two plants have more than 181,000 square feet situated on roughly 20 acres. The county managed to pay $300,000 less than the listing price.

Chris Berman, president of Granite Tactical Vehicles, said that the Mount Airy plants will provide room for the companys research and development departments.

We are very excited about the opportunity to manufacture in a larger production capacity as well as to continue to R&D new products for the military, Berman said. The local government has provided tremendous support and assistance as well as the Surry Partnership.

Mount Airy Mayor Deborah Cochran said that Granite Tactical will provide the area with 200 much needed jobs.

The countys economic development partnership worked with city and county officials and the N.C. Department of Commerce on the project.

Granites expansion is more good economic development news for an area that has been hard hit by the recession. After declining for three straight months, Surry Countys jobless rate rose in November with 150 additional workers filing claims last month for unemployment insurance benefits.

According to the Employment Security Commission of North Carolina, the countys unemployment rate increased 5.9 percent from 11.8 percent to 12.5 percent. The number of unemployment claims, which had declined in recent months, rose from 4,058 in October to 4,215 in November.

Granite is one of three local companies that wants to increase production and hire more employees. Two out-of-state companies, Arkansas-based Central States Manufacturing Inc. and Catalina Tempering, recently announced plans for manufacturing plants in Mount Airy.

Central States Manufacturing plans to build a $1 million plant on a 10-acre site on Mountain View Road at Piedmont Triad West Corporate Park. The company is expected to create 45 to 50 jobs, which will pay an average of $40,656.

Catalina Tempering, which is based Southern California, plans to employ 20 workers at the former Kentucky Derby Hosiery plant on Derby Street. The company paid $550,000 for the 67,000-square-foot plant and 3.5 acres, which was on the market for $800,00.

On Monday night, Surry Commissioners approved a proposal that would allow a local company to use up to $6 million in federal stimulus money in its expansion. Details on the latest company to come forward are still sketchy with no preliminary figures on how many new jobs would be created.

Mount Airy commissioners unanimously approved last week a $292,256 incentive package that includes land valued at $230,911 and tax credits of $61,345 for a local industry that wants to expand its operations, creating 38 new jobs. The company at Piedmont Triad West Corporate Park is considering sites in Davie County and Virginia. The county is expected to match the incentives.