Asheboro-based machining company investing $1.2M in facility expansion, will hire 20
October 16, 2018
Asheboro-based PEMMCO Manufacturing is investing $1.2 million in its facilities, opening up capacity for new jobs and growing business.
Rick Powell, president of PEMMCO, told Triad Business Journal construction is expected to begin late fall on a 15,000-square-foot expansion, adding to the company's existing 50,000-square-foot facility.
PEMMCO has 85 employees, Powell said, and the company has committed to adding 20 new jobs with an average annual salary of $36,800. The company manufactures and supplies components for companies such as Boeing, John Deere, Honda, Remington and others.
The commitment was made as part of an application for an N.C. Commerce building reuse grant totaling $250,000. The grant was submitted to the state by the Aug. 30 deadline with the help of Kevin Franklin, vice president of the Randolph County Economic Development Corp., by the Aug. 30 deadline.
The next round of grants will be issued Oct. 18.
Building reuse grants require a 5 percent local match, which will be split between the city and county.
The Asheboro City Council agreed to pay its split of $6,250 at its Aug. 23 meeting.
Randolph County Commissioners will meet Sept. 4, and Powell said the commissioners have expressed their support for PEMMCO's application and will likely approve the funding.
The 20 new jobs will be operator, machinist and engineer positions. PEMMCO will have 18 months to hire the 20 new jobs and complete the investment receive full-funding. If the new hires are not retained for the following six months, the company will have to repay the loan on a per-job basis, or $12,500 per job.
Powell said of the total $1.2 million investment, $700,000 will for the expansion and $500,000 will be used to purchase new equipment. When PEMMCO built its facility in 2011, it had about 50 percent extra capacity.
"Now we've pretty much used up our floor space," Powell said.
The company has been growing at a rate of about 20 percent year over year, Powell said.
Oct. 19
In 2017, revenue was just under $10 million, Powell said.