Kewanee site still competitive

Published 10:39 pm Monday, March 13, 2006

State and local officials believe a site at Kewanee is a prime location for a manufacturing facility — despite Kia’s decision to locate its first American plant in Georgia.

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Wade Jones, president of the East Mississippi Business Development Corp., said Kia’s decision is disappointing, but state and local officials will move forward to promote the Lauderdale County site.

“We need to take advantage of the national recognition that East Mississippi and West Alabama have received in the Kia site search,” Jones said. “It has heightened awareness of the site.”

On Sunday, South Korean automaker Kia Motors Corp. announced it will open a $1.2 billion plant in Georgia, creating almost 5,500 direct and indirect jobs.

The 2 million-square-foot plant will be built in West Point, Ga., a town of 4,000 near the Alabama border. LaGrange, Ga., a city of about 27,000 people, is located a few miles away. Kia’s parent company, Hyundai Motor Co., already has a plant in nearby Montgomery, Ala.

Proximity to that site — combined with a $258 million incentive package from the state — helped woo Kia executives.

Jones said Mississippi can compete in that marketplace. The state’s incentive package, Jones said, along with federal Gulf Opportunity Zone tax incentives will be available to other companies interested in locating in Mississippi.

Promoters do not have plans to change their marketing strategy for the Kewanee site because they believe it stands on its merits.

“The site is being marketed to any company that would require the same qualities that Kia did,” Jones said. “We know the Interstate 20 corridor will continue to develop and this site is in a prime location.”

Gray Swoope, chief operating officer for the Mississippi Development Authority, said Monday that while Kia decided to locate elsewhere, he is proud of the way the MDA and EMBDC promoted the site.

“We are working hard every day to find jobs for the East Mississippi area,” Swoope said. “We learned things from this experience that we can take forward. We still have a good site that continues to draw interest.”

Swoope said the MDA and the EMBDC began working on the Kia deal last summer after Gov. Haley Barbour returned from a trip to Asia to seek investment opportunities.

During that trip, Kia representatives said Meridian was its top choice for the plant, but they later said Meridian’s population was smaller than they thought.

Gov. Haley Barbour declined to comment Monday on Kia’s decision.

Board of Supervisors President Craig Hitt, who represents District 3, said county officials will do their part to continue to promote the site.

“I hear there are more opportunities for megasites like that one,” Hitt said. “Because Kia looked at us, we have been able to get our message out there, and I think it has helped us. I think the fact that they mentioned the site several months ago put us out there in the front line for folks who are looking.”

Hitt said Kia’s decision, while disappointing, could lead to better opportunities for Lauderdale County.

The Kia plant in Georgia plant will initially employ 2,893 workers at an average annual salary of $50,000. Another 2,600 employees are expected to work at five supply companies which have committed to place plants in Georgia near West Point to feed parts and materials to the main plant.

The Associated Press contributed to this report.