New Scott City plant to employ 25

Local and state government officials and local business recruiters meeting in Scott City Thursday morning announced a wire-making firm's expansion into Scott City that will account for 25 new jobs and possibly more. Nashville, Tenn.,-based Mid-South Wire Co. will set up a manufacturing facility in Scott City the company hopes will be operational by late April, said company president John T. Johnson Jr.

The project has been several years in the making. Johnson said he first talked with local business recruitment officials about a move to the area three to four years ago.

Johnson said he hopes to "make this the most modern, efficient and low-cost mill possible." Mid-South will invest more than $3 million to get the plant running at 503 Main St. The company will share the 10,000-square-foot building with Arrowhead Steel, which already occupies the building.

Tom Kelsey of Lorimont Ltd. brokered the deal for Mid-South's $1.6 million purchase of the building.

Mid-South converts raw low-carbon steel wire for use by a variety of industries by drawing it to different sizes. The wire is used in the appliance, material-handling, display, automotive, fastener/nail and other fabricated wire industries. Among its largest customers is the Rubbermaid plant in Jackson, which Johnson said he's been doing business with for 20-plus years. About $15 million of Mid-South's annual $150 million in sales come from the local Rubbermaid plant, Johnson said.

Rubbermaid was a key reason for creating a plant in Scott City, along with easy access to rail, barge and interstate transportation, Johnson said.

Scott City Mayor Tim Porch said he and the city council are committed to bringing more jobs to the city to help make Scott City less of a bedroom community. "We're really pleased they're bringing new jobs into town, and we're ready to assist them in any way we can," Porch said.

Incentives from the public and private sectors were crucial to the project. AmerenUE's Community Development Corp. awarded $150,000 to Mid-South to help start operations. The Missouri Department of Economic Development assisted by awarding a $112,000 Community Development Block Grant for improvements to sewer and storm-water drainage at the plant sites. Those improvements were necessary for Mid-South to locate at 503 Main St.

More state assistance may be coming in the form of the Missouri Quality Jobs Program, which allows employers to keep part of employee withholding taxes that would otherwise go to the state, said DED project manager Shaun Sappenfield.

Cape Girardeau Area Magnet helped recruit Mid-South to expand into the area by helping the company find a site to fit its needs and helping connect Mid-South with state incentives.

Since Mid-South is a wholesaler, Scott City won't see sales tax revenue from the business, but plant workers and truck drivers will spend money in Scott City.

Mid-South hopes to create more than 50 new jobs within two years and may expand its shipping operations into the city in the near future. Currently all company operations are in Nashville, including shipping.

msanders@semissourian.com

335-6611, extension 182