New Dalton plant called economic shot in the arm

DALTON, Ga. -- Within 16 months, a new plant in Whitfield County will begin rolling out as much as 5,000 miles of sheet fiber for vinyl flooring a year.

"That's about Dalton to Atlanta and back every day of the year," said Jan Vergote, CEO of IVC Group Inc.

On Monday, IVC Group officials were joined in Dalton by Gov. Sonny Perdue and other notables to announce that the Belgian company plans to build its first U.S. vinyl floor manufacturing plant at Whitfield County's new industrial site.

Company officials say the project is a $70 million capital investment, and local leaders say it's a turning point for Dalton's economy.

Xavier Steyaert, CEO for IVC U.S., said the company will add 115 jobs when manufacturing begins, bringing the company's total employees in the county to 150. Hiring will begin in the second half of 2010.

Gov. Perdue said IVC's decision shows the company "plans on being in business for a long time" and has "a commitment to the U.S. housing market."

U.S. Rep. Nathan Deal, R-Ga., said the investment could signify an end to the recession, "starting right here in Dalton, Georgia."

Whitfield County's newest industry also is rooted in the textile industry.

IVC Chairman Filip Balcaen said he founded the company in 1997 as CEO of Balta Group, a company his father started about 50 years ago that became "the leader in rugs and carpet in Europe."

Mr. Balcaen said branching out to vinyl flooring with IVC was "a risky step, but it all went well, because, today we are the leader in Europe in vinyl."

IVC officials said they looked at locations across the United States and chose Dalton for a number of reasons. The company opened a distribution center in Dalton in 2002, said Mr. Balcaen. The city's proximity to Interstate 75 and its nearness to Atlanta and Chattanooga counted, too, he said.

"Both cities offer unique assets and complement Dalton very well," said Mr. Steyaert.

Whitfield County Commission Chairman Mike Babb said the county expects to shell out about $2.2 million for the company, including purchase and preparation of the 44-acre site and the building of an access road.

He said the company won't pay property taxes for the first five years, but taxes will be phased in from years six through 10 so that, by the 11th year, the company will pay its full bill.

Mr. Babb said the tax forgiveness isn't so much an expense as an investment.

"It's more expensive not to have any industry in your community," he said.

The county also is working to increase job tax credits available to IVC, according to a news release.

Lt. Gov. Casey Cagle said that, aside from the 115 permanent jobs, development at the site will create construction work for others.

The IVC announcement comes as unemployment for the area remains at about 13 percent.

But Mr. Babb said the county has lost about 6,000 jobs since the recession began and more economic development is needed.

"Even if the recession turns around and comes back, all those jobs will not be coming back," he said.

ABOUT IVC US INC.

* First U.S. manufacturing site for IVC Group, established in 1997 and based in Avelgem, Belgium

* Will add 115 jobs

* Will produce about 20 percent of all IVC products sold in the United States

* PLANT DETAILS

* 520,000 square feet

* Will house world's longest luxury vinyl manufacturing line at about 1,300 feet

WHAT'S NEXT

* Site preparation started in August

* Spring 2010: Company will begin receiving and assembling parts for the plant

* October 2010: Installation of manufacturing machinery

* January 2011: Production begins

Sources: IVC Group officials, news release