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Published: December 23, 2005 02:45 pm
Plant to bring 50 new jobs
By Doug Russell
News Editor
There’s a new business in town.
Diversified Foods & Seasonings Inc., a Louisiana-based company, has bought the old Simmons plant in McAlester. Diversified Foods makes a variety of specialized food products widely used in the restaurant industry. Among Diversified’s brands of sauces and dishes are Culinary Creations, New Orleans Chefs Creations, Culinary Collections and Casa San Louisa.
Richard Chapman, president of chief operating officer of the company, said Diversified closed the deal to buy the building from Simmons on Wednesday. He declined to say how much Diversified paid for the plant, which was last used for operations in 2003.
“Strategically, the area is in an ideal location,” Chapman said, citing McAlester’s proximity to rail lines and major highways. “There’s a potential to reduce overall logistics costs.”
Diversified had been looking for another plant for some time, Chapman said, but “(Hurricane) Katrina caused us to move faster.”
The hurricane destroyed much of one Diversified plant when it smashed into New Orleans earlier this year. The plant had been located in the New Orleans suburb of Metairie.
The company still has plants in Alabama, Madisonville, La., and San Antonio.
Diversified had already been looking at McAlester before the hurricane however, Chapman said, adding the old Simmons building has many of the things his company needs, including freezer and storage space. “It will require a minimum effort on our part to get back in operation,” he said. “We plan to be operational in March” with at least one production line up and running.
Still he said, the facility will need some upgrading. “Over the next year we’ll probably reinvest back into the facility maybe $1.5 million,” he said.
The plant is expected to employ at least 50 people, Chapman said, adding Diversified will hold a job fair in January.
Chapman said that although his company is receiving some incentives for locating in McAlester, those incentives are “Nothing extraordinary.” Diversified will receive some incentives from the state Department of Commerce as well as $50,000 from local entities. That $50,000 will only be paid if Diversified hires and keeps at least 50 people employed for three years, Chapman said.
“Anything less than 50 and we lose $1,000 per job,” he said, adding the company won’t receive the money until the three-year period is over.
Chapman said McAlester Economic Development Service Executive Director Jim “Red” Mills played a large part in his company’s decision to locate in McAlester. “His enthusiasm in bringing business in and his enthusiasm both before and after the sale are extraordinary,” Chapman said.
For his part, Mills said bringing any business in requires a partnership of many organizations, including MEDS, the city of McAlester and the McAlester Foundation. “There’s always more than one entity involved,” he said, adding the state Department of Commerce had recommended he get in touch with a Chicago-based firm, Trammell Crow Co., about finding a buyer for the Simmons plant. Trammel Crow, which specializes in commercial real estate, was a great help in locating Diversified, he said.
The sale of the old Simmons plant “Sends a positive message that McAlester is the hub of economic activity in Southeastern Oklahoma,” Mills said, adding a key element in attracting business to the area is the fact that McAlester has a large available labor force.
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