Economic boon: Arm & Hammer to build in York County

Jun 06, 2008 (York Daily Record - McClatchy-Tribune Information Services via COMTEX) -- CHD | Quote | Chart | News | PowerRating -- More than $9 million could be injected into York County's annual economy thanks to the paychecks of roughly 300 new workers expected to be employed at a proposed Jackson Township manufacturing plant.

Church & Dwight Co., which makes Arm & Hammer Baking Soda, plans to build a laundry detergent plant near Route 30 in the township later this year to be operating by fall 2009.

The 1.1 million-square-foot processing plant on 232 acres would include a related distribution center.

About two weeks ago, Church & Dwight filed a land development plan with Jackson Township, said William Conn, township manager. Township supervisors are now reviewing the plans and are expected to issue a decision in July, he said.

Darrell

Auterson, president of the York County Economic Development Corp., said Church & Dwight is an important name to add to York County's "marquee" of businesses.

The company would be a stable employer locally, he said. It maintains strong ties to the communities in which it works and produces a product -- laundry detergent -- that is fairly insulated from a fluctuating economy.

Looking for space

When completed, Church & Dwight's York County plant would replace the company's North Brunswick, N. J., site.

The company currently operates out of an inefficient setup of a manufacturing building and four separate warehouses, said Matthew Farrell, chief financial officer for Church & Dwight.

About a year ago, the company began looking for a new site that would allow for all the operations to be under one roof.

Farrell said the company quickly narrowed its search area from six states. Most of the possible sites either offered a lot of nearby land for expansion or existing infrastructure. York County offered both, Farrell said.

Large manufacturers consider an area's location, affordability and workforce when deciding a major move, said Michael E. Smeltzer, executive director of the Manufacturers' Association of South Central Pennsylvania. York County is close to Interstate 83, the Pennsylvania Turnpike and the Port of Baltimore.

While most companies take in account what it will cost for utilities and taxes, those firms also factor in if the area will be affordable for their workforce.

"This area retains a quality workforce that not only talks about maintaining its future," Smeltzer said, "but is doing things about it such as the York County School of Technology."

Church & Dwight plans to pour a portion of its money into the local economy. It plans to spend about $170 million in cash, debt and credit to open its York County plant and to close its New Jersey one.

Gary Stewart, president of Stewart Associates, the owner of the local site, said the contract to buy the land is expected to be finalized later this summer.

Jobs

Once Church & Dwight shuts down its New Jersey complex, about 300 people are expected to be let go or be placed in other jobs within the company.

It expects to hire 230 manufacturing plant positions from the local market and 70 salaried positions for the York County facility, Farrell said.

In North Brunswick, hourly workers make on average $15 to $16 per hour in jobs such as mixing chemical compounds, driving forklifts and running machinery.

Farrell expects the hourly pay to be about the same in Pennsylvania.

At $15 per hour, 300 new jobs would funnel more than $9 million in payroll into the local economy. That's not including the creation of an army of service positions.

Each manufacturing job gives birth to about three service positions such as clerks at retail stores, real estate agents and insurance agents whose task it would be to cater to those new residents, Smeltzer said.

Farrell did not know when the hiring would begin. Those decisions would be made as the construction of the plant is under way.

Process so far

Earlier this week, Jackson Township supervisors approved a group of waivers for the land development plan between Commerce Drive and East Berlin Road along Hidden Lane.

Site engineer Daniel Wise of HRG in Gettysburg said emergency access to the site would be off Route 234. The main access would be off Commerce Drive.

Future expansion would include a 1.9-million-square-foot distribution warehouse and processing facility, Wise said.

The plans include docks and trailer parking, storm water management basins, employee parking and a recreational area for employees that would include volleyball courts, he said.

Wetlands would not be disturbed.

A railroad spur and siding would be brought to the building, Wise said.

Improvements would be made to Route 30, Commerce Drive and the railroad.

One of those improvements would likely include a traffic light at Bowman Road and Route 30, Conn said.

AT A GLANCE

Why does it matter to York County?

--- $170 million total capital investments by Church & Dwight Co.

--- $9 million in economic impact from wages per year initially

--- 1.1 million square feet of factory and warehouse space

--- $1 million in school district taxes per year after 10 years (estimated)

--- 900 related new service jobs (estimated)

--- 232 acres for development and later expansion

--- 102-year history of company making sustainable products

--- $15-$16 per hour average wage for hourly workers

--- 1 factory making products with a stable demand

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