After more than doubling its number of employees during an expansion that began in 2016, Modular Power Solutions is planning to add $2 million in equipment and construct a new building.
The Sherman Economic Development Corp.’s board of directors approved a $510,000 incentive for MPS and its planned $10.2 million investment in the purchase of 20 acres in Midway Industrial Park and $2 million in equipment, as well as construction of a 172,800 square foot building.
“The public dollars that SEDCO invests — the $500,000 — will get returned back to the community within five years,” SEDCO President Kent Sharp said of the results of a cost-benefit analysis done on the deal. “So you want to make those kinds of investments all day long.”
MPS, which produces electrical infrastructure units for digital data centers, currently has two buildings and a warehouse in Midway Industrial Park and the new building will be constructed on 10 of the 20 acres the company is purchasing next to one of its current buildings. In addition to the land, equipment and building construction, part of MPS’ planned $10.2 million capital investment will be used to reconfigure its current facilities.
“Part of their investment will reconfigure this building to better suit production,” SEDCO Executive Vice President Stacey Jones said.
Jones told the SEDCO board MPS doesn’t plan to hire any additional workers at this time, but it will “maintain the current headcount of 105 employees in Sherman.” She said MPS plans to reconfigure its production lines to make them more effective with the company’s current employees.
“I suspect they’ll probably create more jobs than the 105 that they’re going to retain,” Sharp said of the company’s plans down the line. “Anytime a business is growing in your town in their sector, that’s a good thing. It shows other companies, ‘The cost of doing business in Sherman is better than where we’re at, let’s go check that place out.’ So we like to see those types of things.”
SEDCO’s performance agreement with MPS runs through Aug. 31, 2021, but Jones said the company expects to have its new building completed within a year. MPS will be eligible to receive the first of two $255,000 incentive payments from SEDCO on June 30 and upon receipts for $5.1 million in spending on the project. The second incentive payment would be available to the company on Nov. 30 and after showing the corporation that MPS has spent the remaining $5.1 million and maintained its 105 employees.
The SEDCO board previously approved a performance agreement with MPS that saw the company make a workforce investment of $943,000 to hire an additional 47 employees. SEDCO staff delivered the company a $384,000 incentive payment at the conclusion of that agreement in September.