Designed Alloy Products Inc. has bought a vacant industrial site in Chattanooga in a $6 million expansion that will create 16 new jobs over three years, officials said Tuesday.
The company will expand to the 96,000-square-foot former Niagara Steel building on Alton Park Boulevard, according to the Chattanooga Area Chamber of Commerce.
The company currently operates a metal scrap sorting and processing facility on Riverfront Parkway. Its output is shipped to other firms for melting into cobalt and nickel-based alloys, stainless steel and tool and alloy steels.
Kevin Maher, the company’s controller, said Niagara pulled the last of its employees out of that building about 14 months ago.
He said the new jobs, adding to DAP’s existing work force of 15, will average about $36,000 to $40,000 annually. Plans are to sell its Riverfront Parkway facility.
Cristi Hoffman, DAP’s chief executive officer, said in a statement the company has already started bringing new people on board for expanded operations.
“The pace of our hiring will accelerate as we progress through the relocation and expansion of our facilities during 2008,” the CEO said.
According to the company, it had reached a point where the existing facility could no longer support its business volume. Also, the old facility was landlocked and not optimally laid out for it work processes, the company said.
Trevor Hamilton, vice president of economic development for the Chamber, said DAP spent much of 2007 evaluating potential expansion sites in Chattanooga and at its existing locations in other parts of the country.
This is the second recent project in the Alton Park area. FedEx Ground is building a new facility on the site of a former landfill.
Chattanooga Mayor Ron Littlefield said DAP continues a reinvigoration of the area and along with FedEx will provide jobs while re-developing that part of Chattanooga.
Hamilton County Mayor Claude Ramsey cited DAP for “continuing its commitment to Chattanooga by investing in a new facility and creating new family wage jobs.”
Maria Noel, manager of the city’s Renewal Community program, said that by purchasing property in the Renewal Community Zone, DAP is eligible for a variety of federal tax incentives.
Mike Pare, the deputy Business editor at the Chattanooga Times Free Press, has worked at the paper for 27 years. In addition to editing, Mike also writes Business stories and covers Volkswagen, economic development and manufacturing in Chattanooga and the surrounding area. In the past he also has covered higher education. Mike, a native of Fort Lauderdale, Fla., received a bachelor’s degree in communications from Florida Atlantic University. he worked at the Rome News-Tribune before ...