Wacker Chemie AG’s President and CEO Dr. Rudolf Staudigl announced Thursday morning that the Munich, Germany-based company’s plans to construct a new facility in Bradley County with an estimated capital investment of $1 billion and initial employment of approximately 500 highly skilled workers.
The new facility will produce hyperpure polycrystalline silicon, a key component in photovoltaics for solar energy and semiconductors for the electronics industry.
“This announcement further enhances Tennessee’s growing reputation as an innovation center in the development and manufacture of clean energy technologies,” said Gov. Phil Bredesen, who attended the press conference. “I appreciate Wacker Chemie’s investment in Tennessee and its recognition of the productivity of Tennessee workers, and I’m very pleased the company believes this is the best place to enhance its position in this growing economic sector.”
“We expect polysilicon demand from the solar and semiconductor industries to further increase in the coming years,” said Dr. Staudigl. “Purchasing this site is an essential prerequisite to quickly build up additional production capacities outside the euro zone in line with projected market trends and growth in demand.”
The facility will be located on an approximately 550-acre greenfield site near the Hiwassee Industrial Park in the Charleston community of Bradley County. There will be an extensive design period and work in process before construction would begin.
“Under Gov. Bredesen’s leadership, we’ve developed a strategy for the creation of ‘green collar’ jobs in Tennessee,” said ECD Commissioner Matt Kisber. “That strategy has resulted in more than $2.5 billion dollars in capital investment and over a thousand new jobs being announced in the past year and we truly believe Tennessee is well-positioned for the growth of a sustainable economy in the U.S.”
In addition to the state’s strong business climate, Wacker officials cited Tennessee’s well-developed infrastructure and the cooperative partnership of state agencies, local government, the Tennessee Valley Authority and the local chamber of commerce. As part of its investment, Wacker will qualify for statutory incentives on the state and local level, including the FastTrack Infrastructure Development Program, the FastTrack Job Training Assistance Program and the Super Jobs Tax Credit. The strong partnership between the state of Tennessee and TVA will allow the company to take advantage of industrial electricity rates approximately half those found in Germany, officials said.
Wacker Chemie AG is currently the world’s second largest producer of hyperpure polycrystalline silicon. Wacker has manufactured polysilicon for over 50 years and has steadily expanded its capacity to meet rising solar-silicon demand in the photovoltaic industry.
Anticipation and speculation about the company have built for months leading up to the announcement before some 300 guests in Dixon Center on the Lee University campus by Wacker Chemie President and CEO Dr. Staudigl; Dr. Ingomar Kovar, president and CEO, Wacker Chemical Corporation, Wacker’s North American operations; and Gov. Bredesen. Dr. Peter-Alexander Wacker, chairman of Wacker Chemie AG’s Supervisory Board, also attended the announcement.
“Green energy is the new frontier in Tennessee and especially in Bradley County,” State Rep. Kevin Brooks, 24th District, said. “We have solar design being taught at Cleveland State, and now we have a world leader in creating innovative solutions today in Bradley County, Tennessee. Welcome home, Wacker family, welcome home.”
Carl Hite, chairman of the board for the Cleveland/Bradley Chamber of Commerce, spoke of the significance of the billion-dollar investment locally and regionally.
“This will be looked upon as a major milestone in this community’s history, particularly in light of what is happening with the economy,” Dr. Hite said. “The fact that we are getting a company that not only excels at what they do but is also a good corporate citizen, as well as good conservationists of the environment, makes it even better.”
Continuing, he said, “This community could not be getting a better company to build their plant here in our county. I think all of us are looking forward to working with Wacker, knowing this relationship will result in success for them and for the citizens of Southeast Tennessee.”
To accommodate the project, the Tennessee Department of Transportation with assistance from the Department of Economic and Community Development will build a new industrial access road from Lauderdale Memorial Highway to Old Lower River Road.
The road will not only serve Wacker’s new facility, but it will also serve two existing manufacturers, Olin Corporation and Arch Chemicals, with improved access to Interstate 75. Cleveland Utilities, Chattanooga Gas and Volunteer Energy will also provide infrastructure to support the project.
“We are very fortunate to have a company of Wacker’s caliber and stature in the global development of the solar cells photovoltaics industries locate in our community,” Gary Farlow, president and CEO of the Cleveland/Bradley Chamber of Commerce, said. “Governor Bredesen, Commissioner Matt Kisber [ECD], Commissioner Reagan Farr [Revenue] and the governor’s cabinet and their staff members, along with TVA staffers Alan Raymond and John Bradley and others have done a tremendous job bringing this project to Tennessee and establishing our state as a leader in our country’s energy future.”
He said TVA’s Alan Raymond introduced Bradley County to Wacker three years ago when the company was searching for a location. An effort similar to the one that ultimately resulted in today’s announcement was done on the earlier project, which was built on the company’s existing campus in Burghausen, Germany.
“It was that experience and the work of many of the same players who worked on the current project that brought Wacker back to Bradley County this past year,” Mr. Farlow explained. “It was also due in part to Ross Tarver maintaining contact with some of Wacker’s officials located in their Adrian, Michigan, North American operations headquarters even after the previous project located in Germany.”
He continued, “While there are too many people to thank for their efforts in this project, I would be remiss if I didn’t give a special thanks to Ross Tarver for his tireless efforts on this project. His leadership, wisdom and perseverance played a pivotal role in making this project happen. He has been deeply involved in this process every step of the way and has spent countless hours away from his family and business working on this project.”
Mr. Tarver chairs the Bradley/Cleveland Industrial Development Board (IDB), which is charged with job creation and economic development in Bradley County. “These have been three long and challenging years,” he observed, “but I had a feeling in my gut that we [Bradley County] would be revisited when Wacker made the decision to come to North America.”
Mr. Tarver has maintained contact with the company since the beginning of the relationship in 2005 with periodic phone calls and emails.
“Today’s announcement proves there’s nothing we can’t accomplish if we work together,” the IDB chairman said, referring to the work done by the Industrial Development Board, the Cleveland/Bradley Chamber of Commerce, Bradley County Commission, the State of Tennessee, TVA and many others over the past eight months to bring the project to fruition. “All these entities working together made this become a reality.”
He noted that special recognition is due all members of the IDB—County Mayor Gary Davis, City Mayor Tom Rowland, Scott Taylor, George McCoin, Tony Young and Tom Wheeler.
Mr. Tarver described the project as a “marvelous opportunity for the new manufacturing facility to work with existing industry too,” citing the company’s plans to purchase chlorine from Olin Corporation.
“On behalf of nearly 500 Olin employees in Bradley County, I want everyone in the community to know how excited we are to be associated with this important project,” said John McIntosh, president of Olin Chlor Alkali Products Division that operates a chlor-alkali plant in Charleston adjacent to the Wacker Chemie AG site in north Bradley County. “We anticipate a long, productive relationship as we work together to further the strong local business climate.”
Hassan Arabghani, Olin’s vice president of Business Development & Strategy, congratulated the state of Tennessee, Bradley County and the Cleveland/Bradley Chamber of Commerce for helping Wacker select Charleston.
“We are pleased to be supplying chlorine to this new facility via pipeline under a long-term contract.”
The Wacker Polysilicon Division of Wacker Chemie AG is currently the world’s second largest producer of hyperpure polycrystalline silicon. The size of the site, the availability of reliable power from the Tennessee Valley Authority (TVA), the supply of chlorine from the adjacent Olin Corporation facility and excellent transportation infrastructure made north Bradley County an attractive location.
According to Wacker’s Staudigl, “Purchasing the land is an essential prerequisite to quickly build up additional production capacities . . . in line with the projected market trends and growth in [polysilicon] demand.”
County Mayor Gary Davis noted the economic impact of a globally active chemical company on the industrial base of Bradley County.
“The importance of Wacker’s decision to become a part of Bradley County’s industrial base cannot be overstated,” Mayor Davis stressed. “When the delegation from Bradley County visited Wacker’s headquarters in Munich last September and toured one of their facilities, I realized what an impact this company could have on Bradley County’s economic future.”
He continued, “The creation of 500 jobs and a billion-dollar investment in our community during a national recession will help ensure a solid economic base for Bradley County’s future. We have invested three long years of negotiations with Wacker, and it’s satisfying to see our efforts rewarded.”
Bradley County Commission Chairman Michael Plumley echoed the county mayor.
“Since learning of a prospective industry’s interest in locating their United States production in Bradley County,” Plumley said, “the Bradley County Commission has attempted to be as proactive and cooperative as possible in making it become reality. Any actions of the Commission in relation to industrial recruitment should be considered and viewed as ‘investments’ for our future.”
Mr. Plumley continued, “We are optimistic considering the potential employment this brings for our county residents. We remain elated about future events occurring around this significant announcement. It will be exhilarating to watch the developments unfold in the next few weeks and years. What an exciting time for all of Bradley County along with the Southeast region of Tennessee!”
City Mayor Tom Rowland celebrated the historic day as well.
“The announcement today brings great economic news to Cleveland and Bradley County,” Mayor Rowland. “When we look at the investment being essentially the same as Volkswagen’s in Chattanooga, it speaks volumes about the offerings of Southeast Tennessee. Wacker’s decision to locate near the Hiwassee River Industrial Park has culminated many months of planning and working with the company. I have enjoyed becoming acquainted with company officials over the past several months and sharing the advantages of our community with them.”
State Rep. Eric Watson also expressed his excitement about Wacker’s decision to set up a new polysilicon production facility in Bradley County.
“I am especially excited that Wacker has chosen to come to the 22nd District,” Rep. Watson said about the regional impact on the jobs market. “This will be a centralized location for jobs for constituents in not just Bradley County but in Polk, McMinn and Meigs counties as well.”
“Cooperation” was the watchword for those involved in the lengthy process.
“How do you begin to properly recognize all the people who have worked so hard to bring this exciting project to our community?” Mr. Farlow observed. “There have been literally hundreds of people working thousands of hours to bring this project to this point.”
City Mayor Rowland identified some of those people.
“This accomplishment is attributed to a great teamwork effort of many, including local, state and federal governments,” the city mayor said. “Two people who have worked extremely hard are Gary Farlow, CEO of the Chamber, and Ross Tarver, chairman of the Industrial Development Board. I cannot say enough about the hands-on help of Governor Bredesen, Economic Development Commissioner Matt Kisber and Revenue Commissioner Reagan Farr.”
Mayor Rowland continued, “Our local state legislative delegation, as well as our two U.S. Senators and Congressman Wamp, have contributed much to today’s success. And I would be remiss not to acknowledge the progressive leadership of the Bradley County Commission. This is a day of celebration for everyone in Bradley County.”
IDB Chairman Tarver concurred.
“The level of cooperation between Wacker, Olin, the state, TVA, Bradley County, and other federal, state, regional and local officials has been outstanding,” Mr. Tarver pointed out. “Throughout this process everyone involved has exhibited a can-do attitude and has worked to make this project a win for everyone involved.”
Mr. Tarver noted in particular the leadership of Chairman Michael Plumley and the County Commission.
“Without their support, without their vision, this project wouldn’t have become a reality,” he said.
Sen. Dewayne Bunch likened the process for this particular project, which began in earnest in June 2008, to “rowing together in the same boat.”
“I appreciate the teamwork of local and state officials and Chamber of Commerce leaders,” Sen. Bunch said. “When we all focus, good things happen. This is another example of making good use of the resources available to us.”
Those resources included the package of incentives connected with the land purchase includes provisions of necessary transportation access and a reliable source for water and electric-based energy, key resources associated with the production of hyperpure polycrystalline silicon.
Continuing to refer to cooperation as the premise for the success of the project, Carl Hite reiterated that “so many people have worked so hard to make this announcement a reality for this community.”
Pointing to the mission of the Chamber to ensure “the economic growth of our region and the highest quality of life for our community, the Ocoee Region of Tennessee,” the chairman of the board said, “The Chamber has played a major role in this, and I cannot say enough about what they have accomplished. But what made today happen was cooperation at all levels of government throughout Tennessee and at the federal level.”
Dr. Hite added that he is “thrilled to see this announcement happen during my tenure as chairman of the board for the Chamber of Commerce,” but also recognized the efforts of several past chairmen under whose terms of office the project spanned: Nancy Casson, Jeff Morelock, Brenda Lawson and Cameron Fisher.
“All of them had a leadership role in this project,” Dr. Hite commented.
Acknowledging the leadership of the Chamber’s past board chairmen, Mr. Tarver noted that “people forget the role the Chamber of Commerce plays. But kudos to the Chamber staff for their work, especially to Gary Farlow. I know the hours that have gone into this, and most people don’t realize that it sometimes takes years to secure a project of this size.”
Rep. Brooks summarized the day’s events.
“This is a great day for Cleveland and Bradley County, Tennessee,” he said. “This is a great day for jobs, for industry and for economic development in our region. This is a day that our grandchildren will talk about and thank us for in the future. We welcome our new friends from Germany, and we extend our hand in partnership.”