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Sharon McBrayer
Media General News Service
Published: July 29, 2008
MORGANTON - It's not the kind of news that's expected in the area.
A furniture company announced Monday it plans to move into the old
Hickory Hill plant on Hoyle Street in Valdese and hire at least 50
workers.
Kellex Corp., which started in a garage in Ohio 13 years ago, has been
welcomed to Burke County with open arms, said company President Chris
Rice on Monday.
In June, the county and town of Valdese, without naming the company,
approved $29,000 over three years in incentives for the corporation.
Gov. Mike Easley's office on Monday announced the company will get a
$30,000 One North Carolina Fund grant.
It was the second positive furniture-related announcement within a week.
On July 23, Thomasville Furniture announced it will add more than 100
employees at its Lenoir plant. The plant, at 315 Elizabeth St. off U.S.
321, is Thomasville's only remaining U.S. case goods operation.
Employment at the plant will grow to more than 800 people during the
next few months.
Kellex Corp. manufactures commercial upholstered furniture. With sales
distribution in all 50 states, it mainly serves the hospitality,
time-share and health-care industries, according to information from the
company. Some of its customers include the Ritz Carlton, Hilton, Peabody
Hotel, Waldorf Astoria and Marriott, said Wayne Harris, director of
Burke Partnership for Economic Development.
One of its newest products is the
Zen Sleeper Sofa, which will be made
in Valdese.
Kellex also operates a sales office in Hickory.
The company, which is expected to invest $1.27 million in the town, has
experienced double-digit growth in the last four years, said Rice.
When it was looking to locate a production operation in North Carolina,
it chose Burke County because of the skilled work force, company
officials said.
Rice said the quality of workmanship far exceeds anything else they've
seen in other parts of the country. The yearly average salary is
expected to be $35,160.
Rice said the company dealt with Hickory Hill before it closed and was
familiar with the property.
Moving overseas as other furniture manufacturers have done wasn't an
option for company officials.
Rice said the company could probably make a profit in the short term if
it was moved overseas but profit was not the sole reason the company was
started.
Bryan Beam, chief financial officer for the company, said some companies
are realizing less of a profit than first anticipated because issues
between getting the product from where it is manufactured to its final
destination. That's why some companies are moving production back to the
U.S.
Because business has been good, company officials believe more than the
50 projected workers could eventually be hired.
In June, the county and town of Valdese also approved $38,640 in
incentives for another furniture company, whose name was not disclosed.
The company was supposed to provide 341 jobs over a five-year period and
move into the other Hickory Hill building.
Valdese Town Manager and Harris said negotiations fell through and that
business won't be locating in the town.
Sharon McBrayer is a staff writer with The News Herald in Morganton. |
