New manufacturing comes to Moberly

While a former governor had problems, the officials of Moberly proved they could keep a secret when Gov. Jay Nixon came here last Friday and announced a Chinese-based company was starting its U.S. outreach in Moberly.

With a loss of jobs locally and a depressed economy statewide, Governor Nixon was eager to tell Moberly and the world about the 600 plus jobs promised to the region.

“These jobs will be a significant boost to Missouri’s economy and our manufacturing sector,” said Nixon.

The company providing the new facility is Mamtek International. It’s primary product is Sweet.O, a no-calorie, no-carb sweetener. It is an item that is used as an ingredient in other products, not something you would pick off the shelf, according to Moberly Area Economic Development President Corey Mehaffey.

Mehaffey said it was the Midwest work ethic that initially drew Mamtek to the area. Bruce Cole, chairman and CEO of Mamtek International said 12 states were considered, 40 cities evaluated and 11 visited physically.

Former Governor Bob Holden is now chairman of the Midwest U.S.-China Association (MWCA) which promotes governmental, economic, educational and cultural opportunities between the Midwestern states and China. Holden worked with Mamtek’s Cole to search possible sites in the Midwest, eventually leading the company here.

Cole said the economic incentives provided by the state and the city, as well as the spirit of generosity of all those he met in Moberly kept the town under consideration. But it was the people that made his decision.

“These folks really like each other!” exclaimed Cole in his Friday speech.

“By working together as a region, we successfully compete in this global economy,” said Holden. “I am delighted that we could play a leading role in this effort.”

While the folks here are great and willing to work, the incentive package was very attractive. The State awarded Mamtek $7.6 million in Missouri Quality Jobs Program tax credits and $6.8 million in Missouri BUILD program tax credits. The state also provided $2 million in community Development Block Grant Industrial Infrastructure Program grant funds; $800,000 in funding for job training; and $368,000 for employment recruitment and referral services.

The City of Moberly did its part in attracting the business. It is providing $37 million in bond sales and $8 million from private investors. Moberly also offered another $500,000 in grants and services to the company.

Mehaffey said $37 million in bonds will be sold through the company of Morgan-Keegan. Bonds will be issued, purchased at different terms. Proceeds will come to the industrial Development Authority who will pay the city who will give it to Mamtek. The City of Moberly will be the owner of the structural facility until the bonds are paid. Mehaffey was unsure if bonds would be sold in this area or allowed to be sold by any local investment firms.

“The fact that we have in-hand large, long-term contracts from global customers, even before breaking ground on the new factory, attests to the high demand for our product. We will expand the plant as we continue to win new relationships with industrial customers,” said Cole.

Mehaffey said the process that normally takes six to nine months was completed in 73 days. The legal work provided by Tom Cunningham and Joshua Payton of Cunningham, Vogel and Rost includes six to seven documents with 150 to 200 pages each.

“Mayor Riley and Corey Mehaffey stepped outside the typical framework to get this job done,” said Holden.

The plant will go up on land owned by the McKeown family across from the ASCS office on Morley at the north end of town. The property consists of 100 acres and the plant will begin on 33 acres with room to grow. Cole intimated another Chinese company would take a look at the area as well based on Mamtek’s good experience. Ultimately, according to Mehaffey, the current soybean field will become known as Moberly Area Industrial Park.

The job number of 612 which the governor pronounced is the goal which Mamtek has set to reach in three to five years. Reena Gordon, Mamtek’s Chief Operating Officer, said the number at the beginning of production would be around the 160 mark but there should be just above 300 jobs in the space of 18 months.

Groundbreaking is planned to happen before month’s end. Mehaffey said the company is in the process of searching for a Human Resource person with numerous calls for jobs already flooding his office. Hiring factory workers will begin in the fall so training can begin although the plant will not be completed before the end of the year said Mehaffey.

Mayor Riley concluded Friday’s ceremony with, “Welcome to Moberly. It IS the Magic City.”