VOL. 130 | NO. 227 | Friday, November 20, 2015
DunAn to Open Manufacturing Facility in Memphis
By Madeline Faber
A Chinese company has selected Memphis to be its first manufacturing site in the U.S., bringing more than 100 jobs and $4.2 million in local taxes.
At a Wednesday, Nov. 18, meeting of the Memphis-Shelby County Economic Development Growth Engine, the board approved an eight-year abatement in property taxes for DunAn Precision Inc. The tax break amounts to a total savings of $2.1 million.
As part of the DunAn Environmental Co., the factory will manufacture heat exchangers for air conditioning and refrigeration units to be sold in North America.
Parent company The DunAn Group is privately owned and headquartered in Hangzhou, China.
Its first U.S. factory will be in Hickory Hill at 5750 Challenge Drive.
According to a Mark Luckevich, senior project manager with DunAn, the move will occur in early 2016. Over the next five years, DunAn will add 104 jobs, including 50 operators, 15 engineers and eight managers with average wage of $54,000.
At this point, DunAn plans to occupy 160,000 square feet of the 420,000-square-foot warehouse, but the additional space will be used when the company amps up with two more production lines. Purchasing the property from Prologis is a possibility, Luckevich added.
DunAn, which also has sales and engineering entities in Texas and California, was attracted to Memphis because of its strengths in logistics. It also considered Texas and Alabama for the factory.
“Most of this particular manufacturing facility will be made for North American customers, so we wanted to be centrally located with good transportation infrastructure to those customers,” Luckevich said.
“When you take all of those factors, location – proximity to customers and vendors, the labor pool, the building suitability and then state and local incentives – Memphis rose to No. 1, and we’re pretty much almost locked in,” he added.
The Hickory Hill warehouse at 5750 Challenge Drive is turnkey, so that fit the company’s needs. It will transport $3.5 million in manufacturing equipment from South Carolina and plans to invest $15.5 million in additional equipment.
“Getting the PILOT program where we have this runway of time to build up capability and build up expertise and customer base, it’s going to be critical for us so we can maintain our competitiveness in this market,” Luckevich said.