A nearly $8.7 million investment by the company will transform an existing 104,000-square-foot building at 800 S. 40th Street in Springdale into a state-of-the-art production center. The central U.S. location of this manufacturing and warehouse facility will significantly mitigate the company’s existing transportation costs, Gov. Mike Beebe’s office said.
“After carefully considering several regions to expand our California facility, Springdale proved to be a perfect fit for South Coast Baking,” said Kent Hayden, CEO of South Coast Baking. “The city provides us with an opportunity to establish our roots in an economically viable and business-friendly climate. Ultimately, our increased production capacity along with geographical freight efficiencies will allow us to better serve our customers.”
South Coast Baking officials expect to initially employ 80 workers with a year-two ramp up of 40 additional employees, reaching 150 total employees during its third year of operation in Springdale. Once remodeling efforts begin in November, the company estimates operations will begin in July of 2014.
“Without the coordinated efforts of various city and state entities, our expansion into Arkansas would not have been possible,” explained Hayden. “The mayor and city officials of Springdale provided us with all the necessary resources to enable us to confidently make our decision. In particular, the incentive program provided by the governor’s office was a major determining factor.”
Incentives provided by the state included funds from the Governor’s Quick Action Closing Fund. “South Coast Baking’s decision to locate in Springdale adds to Arkansas’s reputation as a hub for food manufacturers. The combination of our skilled workforce and a central location for product distribution continues to draw companies here,” the Governor added.
“Job creation is our top priority in Springdale and this decision by South Coast Baking to open a second plant here is tremendous news,” said Mayor Doug Sprouse. “The emphasis on job growth in our city has and continues to pay huge dividends in our economy. South Coast Baking is adding a significant number of new jobs and will pay an outstanding wage. That’s good news for our workforce and our city.”
“It took a team effort by the chamber of commerce, city of Springdale, Governor Beebe and the Arkansas Economic Development Commission to land this outstanding company in our city,” said Sprouse. “Our message to companies considering expansion is that Springdale is open for business. We stand ready to assist in any way that we can.