SEDCO approves $67K incentive for Eaton construction
Eaton B-line could soon receive some assistance in a minor expansion at its Sherman production plant. The Sherman Economic Development Corp. approved an incentive of up to $67,200 the construction of new facilities at the plant during a meeting Tuesday afternoon.
The incentive relates to a new $672,000 construction project that the manufacturer is pursuing. Under the terms of the agreement, SEDCO could provide up to 10 percent of the cost related to the construction of a concrete pad, storage building and racking along with equipment and tooling costs.
Documents from Tuesday's meeting note that the project involves a new product line for the manufacturer that is geared for the oil and gas markets. The investment will involve new tooling and equipment needs for the manufacturer along with storage space.
The incentive comes in two parts. The first piece will involve a 5 percent payment by SEDCO for the project cost, not to exceed $33,600. This funding can be doubled in the second portion of the incentives, which offers an additional 5 percent for goods and services for the project that are bought locally.
However, SEDCO President Kent Sharp said it is unlikely that the manufacturer will qualify for the full 5 percent for using local goods and services.
Under the terms of the incentive agreement, SEDCO will pay Eaton a one-time payment 12 months after the invoices have been delivered. In this time, Eaton will maintain an annual average of 200 employees.
This represents the second incentive that SEDCO has approved for Eaton since late 2019. In December of that year, SEDCO approved a $226,000 incentive for Eaton related to a $4.12 million expansion. However, this project was impacted by the COVID-19 pandemic and the company never made use of the funds prior to the incentive's expiration at the end of 2020.