A Mexican corporation's affiliate company will occupy the former Bauer Industries plant, eventually adding 66 new manufacturing jobs in Burke County.
Gov. Bev Perdue announced Wednesday that Marves Industries, an international textiles manufacturer, will produce padding for use in mattresses and furniture.
The corporation will invest $1.75 million. As an incentive to locate in Hildebran, Marves Industries will receive a $200,000 grant from the One North Carolina Fund.
The plant will pay workers an average annual wage of $33,636, not including benefits, which is higher than the Burke County average annual wage of $30,628.
Marves Industries plans to use the plant's existing equipment as well as the building.
"North Carolina offers the ideal strategic location to cover 50 percent of the potential market that Marves Industries is interested in pursuing," said General Manager Elias Gomez in a press release from the governor's office. "The availability of the building, equipment and trained labor in Hildebran weighed heavily in the decision."
Gov. Perdue said, "North Carolina continues to attract international manufacturing firms seeking the perfect U.S. location to invest and grow. Our state's trained workforce, top business climate and exceptional quality of life are spurring companies to expand here and create the good jobs our citizens have come to expect."
Wayne Harris, director of the Burke Economic Development Council, said the corporation is known in Mexico as Industrias Marves S.A. de C.V. (Sociedad Anonima de Capital Variable, which means "variable capital company"). It's based in the city of Urupuan in the state of Michoacán, about 200 miles west of Mexico City.
"It is a old company, in business for many, many years," Harris said. "It has about a 60 percent share of the market in Mexico, as far as providing padding for the mattress industry. The company has other ventures, everything from chocolates to manufacturing goods from the fiber of coconut shells."
"This is their first venture into the U.S. It's an affiliate," he continued. "They provide the filler for mattresses — some of the companies they deal with are Sealy, Simmons and Restonic — and they not only supply padding for mattresses, but to furniture industries also."
Harris said the company wants to expand its presence in the U.S. market. However, the product by its nature is very light and voluminous and it's not economically feasible to ship it from Mexico to some U.S. manufacturers.
"Being in this area positions them well to supply the mattress manufacturers in the eastern U.S.," Harris said.
Bauer Industries, a Canadian corporation, closed the Hildebran plant abruptly in 2008, giving employees just minutes to clear out. The plant produced the soundproofing and padding that goes under carpets in cars.
Marves Industries will use the same equipment to produce its mattress and furniture padding.
"Locating in an existing facility, they should be ramping up very quickly, hopefully starting in January," Harris said.
The company plans to employ about 50 people in 2010 and add more jobs in subsequent years, he said.
Steve Welker is the editor for the News Herald in Morganton.
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