HTPG to Expand and Move Headquarters to Scottsboro
By Ken Bonner
The Daily Sentinel
Published August 24, 2010
HTPG, formerly Carrier HTP, announced Monday it will expand its facilities in Scottsboro.
The company, which makes commercial refrigeration units, coolers, evaporators, condensing units and a variety of products for the heat transfer industry, anticipates adding as many as 200 jobs at its location in the Scottsboro Industrial Park over the next three years.
"We've gotten some really good news today," Goodrich "Dus" Rogers, President and CEO of the Jackson County Economic Development Authority said. "The company will relocate its headquarters from Brea, California to Scottsboro."
Rogers said approximately 35 people will move to the area as part of the headquarters division. The other jobs will be added to the company's established manufacturing workforce of 319 employees.
"We're excited to know that this is coming about," Scottsboro Mayor Melton Potter said. "We've worked on this for 18 months and to go with the news we got Friday at the TVA Board meeting in Knoxville it's a pretty big couple of days."
TVA's board appropriated $248 million in its 2011 fiscal year budget to continue work at the Bellefonte Nuclear Plant in Hollywood in anticipation of a spring 2011 recommendation to complete the Unit 1 reactor at the facility.
"The announcement gives HTPG a platform to grow and expand," Rogers said. "It's exciting news that is good for Scottsboro and Jackson County. And it's important that we retained the jobs already at the facility."
Carrier HTP was purchased by Monomoy Capital Partners, L.P., a private investment firm based out of New York that focuses on companies with $50 to $300 million in annual revenue. Monomoy acquired the assets of HTPG from the Carrier Corporation.
Starboard Capital Partners will maintain a minority ownership in the business.
In a statement released by its public relations firm, New York based Sloane & Company; HTPG officials announced the company would consolidate its Scottsboro and Yuma, Az. plants.
"Our state-of-the-art Scottsboro facility has more than ample capacity to meet our customers' needs both in the short and long term and the resulting cost efficiencies will also allow us to reinvest capital in parts of the business with the biggest growth potential. We firmly believe this is a necessary step for HTPG to compete in today's economy, and in the long run, will help us to maintain the exceptional service our customers expect."
"HTPG is a $90 million manufacturer of highly-engineered refrigeration condensing units, evaporator coils and air cooled condensers for the food service, foot retail and other non-consumable markets," according to a release by Monomoy announcing the acquisition.
Rogers and Potter agreed that the accomplishment required a team effort and noted that the Alabama Development Office, TVA, the Scottsboro Electric Power Board, Alabama Industrial Development Training and Alabama Career Centers played a role in bringing the expansion to Scottsboro.
Rogers said HTPG has both a manufacturing and distribution center at its location in the Scottsboro Industrial Park. The company has additional property to expand its operations.
"It's been a great three months," Potter said.
Combined with the recent announcement of expansions at Sanoh America, Inc., TVA's location of a nuclear power plant training center in Hollywood and Friday's indication that plans for completing the Bellefonte Nuclear Plant remain part of the utility's long-range vision, a number of jobs and millions of dollars in investment have been made in the local economy during the past quarter.
"It has been as good a three months as we've ever had in Jackson County," Rogers said. "HTPG is one of the strongest commercial refrigeration and heat transfer products companies in the world, its top executives have extensive experience in the industry and, despite the down economy, commercial refrigeration and HTP remains strong."
"After a strategic review of our operations, we determined that the consolidation of our Yuma and Scottsboro plants would drive significant improvements in efficiency and enhance the Company's ability to provide its customers with the highest quality products and service," HTPG said. "Regretfully, this consolidation will result in the closing of our Yuma plant and the elimination of jobs at this location."
Monomoy has completed 28 transactions in the past four years. The Fund, which establishes customized business improvement plans in all its companies, owns 11 businesses that employ more than 5,000 people.