Officials said Tuesday that the firm now manufacturing nylon at the old Dupont plant in Hixson plans a $50 million expansion.
Kordsa site supervisor Tommy Johnson said the project, which will include construction of a new building, will add 200 new jobs.
Kordsa currently has 200 employees at the Hixson location.
Jermaine Freeman, of city economic development, said there once were some 5,000 employees at Dupont.
He said with the new project and the commerce center announced earlier by Rise Partners that jobs at the site would pass 1,000.
Kordsa, which is on a 300-acre site, is seeking a 10-year PILOT tax break.
Mr. Freeman said it will only apply to improvements at the property. The school tax will continue.
A TIF (Tax Increment Financing) district was earlier set up at the Dupont site.
Officials said the PILOT was necessary because Kordsa was considering putting the addition at a plant it operates at Laurel Hill, N.C.
There will be an apprenticeship program at Kordsa, while partnering with Chattanooga officials said.
Mr. Freeman said another benefit will be that Kordsa will allow a section of a planned new Hixson greenway to go across its property.
The new employees will be recruited from Chattanooga, it was stated.
Steve Hiatt, of the Chamber of Commerce, said Kordsa makes industrial strength nylon used for tires and other products. He said they supply all the major tire manufacturers. The firm has six plants in the U.S.
The PILOT will include a 100 percent tax reduction the first year, 75 percent the second year, 60 percent the third year, then 50 percent per year for the remainder.
Governor Bill Lee said, “As Tennessee continues to lead the automotive industry, we proudly welcome additional investment and job creation from companies around the globe. I thank Kordsa, Inc. for investing $50 million in Chattanooga and creating new opportunities for Tennessee families in Hamilton County to thrive.”
TNECD Commissioner Stuart McWhorter said, “We are grateful Kordsa, Inc. has chosen to further invest in Hamilton County. This is a global company that we are proud to have in Tennessee, and we believe Chattanooga will continue to be the ideal location for this company’s future growth and success.”
Kadir Toplu, COO, Kordsa, Inc., said, “Kordsa, Inc. is excited to announce that we are committed to providing growth opportunities at our Chattanooga facility. At Kordsa, we believe that our employees are our greatest strength, and we are proud of being able to create many new jobs in the future. Our Kordsa Facility wants to continue the development of our business and our community for generations to come. Not only do our products reinforce many important products, but our core values reinforce our commitment to providing the best quality products made by the best employees. Kordsa would like to express the most sincere thanks to the Tennessee Department of Economic and Community Development (TNECD) for assisting us with this project, which will create jobs and opportunities for our community. Tennessee - America at its Best.”
Mayor Tim Kelly said, “Kordsa's investment, combined with Rise Partners' ongoing investment in the North River Commerce Center, brings the total investment in the former DuPont property to more than $150 million. This is a prime example of Chattanooga's continued commitment to revitalization and job creation across the city.”
County Mayor Weston Wamp said, “It's encouraging to see a company like Kordsa breathe new life into an industrial site that has played a significant role in Hamilton County's economic history. Two of my own great grandfathers moved to Hamilton County to pursue long careers at DuPont, and our hope is that Kordsa continues the legacy of quality employment on this site in Chattanooga for many years to come.”
John Bradley, TVA senior vice president of Economic Development, said, “TVA and EPB congratulate Kordsa, Inc. on its decision to expand operations in Hamilton County. It’s always an exciting day when we can celebrate a company’s continued commitment to growth in the region. We are proud to partner with the Tennessee Department of Economic and Community Development, City of Chattanooga, Hamilton County and the Chattanooga Area Chamber of Commerce to support companies like Kordsa, Inc. that are creating jobs and investment in the Valley, and we celebrate this announcement together.”
Senator Bo Watson said, “This major expansion of Kordsa is a testament to the unique assets of Chattanooga. By actively engaging with the private sector, incentivizing growth, and cutting red tape, companies like Kordsa are expanding their operations, strengthening the economy and creating good-paying jobs in Hamilton County and across the state.”
Rep. Greg Martin said, “Tennessee continues to be a place where both new and existing businesses can thrive. This expansion by Kordsa shows why that is so important. Not only will this significant investment further strengthen our local economy, but it will also bring 200 new jobs to our community. I appreciate Kordsa’s continued commitment to Chattanooga.”