Updated with additional details from Wednesday’s IDB meeting.
CLARKSVILLE, TN (CLARKSVILLE NOW) – An auto parts manufacturer announced Wednesday it will build a plant in Clarksville bringing 928 jobs in a $90.2 million investment.
T.RAD North America, headquartered in Hopkinsville, Kentucky, is a subsidiary of Japanese manufacturer T.RAD. The company was founded in 1936 as a radiator manufacturer in Kawasaki, Japan, and today, has grown into a global corporation, operating across four continents, according to a news release from the state.
Gov. Bill Lee, Deputy Gov. and Department of Economic and Community Development Commissioner Stuart C. McWhorter and T.RAD officials made the announcement, adding that this is the company’s first location in the state.
The new facility will be in the Clarksville-Montgomery County Corporate Business Park South, a Select Tennessee Certified Site.
T.RAD will build a 400,000-square-foot facility, expandable to 500,000 square feet.
State and local incentives approved
Wednesday morning, the Clarksville-Montgomery County Industrial Development Board approved accepting a state grant to help incentivize the project, along with a local incentive package.
T.RAD is purchasing a $9.7 million, 70-acre pad at in the Business Park – a spot that has been off the tax rolls since it was purchased for industrial development in 2002 – using a grant from the state for $8.5 million. The IDB accepted the grant, and T.RAD will pay the remainder.
Montgomery County Mayor Wes Golden said Wednesday that the county will use its share of proceeds from the sale – about $4.36 million – to fund stormwater improvements.
The IDB also approved a PILOT agreement with T.RAD. The company will receive a 44% abatement over the next 10 years, then will pay the full property tax rate. The PILOT includes a clawback provision that T.RAD must create at least 900 jobs over the next five years.
Jobs will raise average pay in Clarksville
The entry-level jobs at T.RAD will pay $2 to $3 more than elsewhere in Montgomery County.
According to a pay scale chart prepared by the IDB, the bulk of the jobs (about 825) will have an average starting wage of $21.63. The median wage for production associates will be $23.13. That’s significantly higher then the current average starting wage in Montgomery County for production associates of $16.56.
“This is a really good win, and it’s really going to bring the median pay for production workers up in Clarksville,” said Chris Self, director of workforce development for the IDB.
About T.RAD, what they produce
The company specializes in heat-exchange technology, engineering, and design for the automotive, agricultural, and construction equipment industries.
“The automotive sector is important to the state of Tennessee, and the Clarksville Industrial Development Board is proud to support a 40-year-old company serving some of the world’s largest original equipment manufacturers,” said Josh Ward, executive director of the Clarksville IDB. “The creation of nearly 930 jobs over the next five years will provide new opportunities for transitioning military members and Clarksville residents.”
The expansion strengthens the longstanding partnership between Tennessee and Japan, which remains the state’s top partner for foreign direct investment with more than 200 Japanese companies operating in Tennessee, accounting for more than 57,000 jobs and $20 billion in capital investment, according to a news release.
“T.RAD’s expansion into Tennessee represents a strategic investment in the future of our North American operations,” said Taroh Miller, president of T.RAD North America Inc. “The Clarksville facility will enhance our manufacturing capabilities, strengthen our supply-chain performance and position us to meet growing customer demand with greater speed and reliability.”
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