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Schwan gets go ahead on U.S. headquarters

By Michelle Yeomans+

20-Feb-2014
Last updated on 21-Feb-2014 at 09:32 GMT2014-02-21T09:32:59Z

Schwan gets go ahead on U.S. headquarters

German manufacturer Schwan Cosmetics has been given the go ahead to open its US. headquarters and a production facility in Murfreesboro.

The Murfreesboo Planning Commission approved plans for a 171,364-square-foot two-story facility this week.

The headquarters will be situated on 25 acres in the Elam Farms development on the north side of Joe B. Jackson Parkway.

Managing director Holly Montgomery says plans to break ground will be as soon as March, with a spring 2015 target completion date.

We are looking forward to working closely with this group and building a flagship building in Elam Farms,” adds the MD.

Schwan announced it was moving its US headquarters from New Jersey to Tennesse late last year as it wanted to 'take advantage of a higher quality of life and a more skilled work force.'

Tapping into a stronger workforce

Schwan will invest $38m in the new facility, and is expected to create 250 new jobs, with an additional 200 being transferred from Schwan’s existing facility in Lewisburg, Tenn.

Rutherford County, has a relatively high rate of unemployment compared to the rest of the USA, with figures reaching over 12% as of 2012.

The facility will be used to develop the private label manufacturer's cosmetic pencils.

The company’s manufacturing model involves heavy quality control, meaning that a strong workforce is an important element to maintain standards. It has around 4,400 employees worldwide, with corporate headquarters based in Germany.

The corporation has also been approved a battery of tax reductions over a ten-year period, giving the corporation an added incentive to relocate.

Quality of life and tax incentives

Rutherford County is known to have a high quality of life, with excellent public schooling and local healthcare facility Rutherford Hospital recently being named one of the top 100 in the US.

Murfreesboro Mayor Tommy Bragg commented: “Rutherford County is chosen for a location because of existing infrastructure, a strong, capable workforce and our quality of life.”

“I am hopeful that many of the New Jersey employees will relocate and choose Tennessee as their new home. I welcome our new neighbor and wish them success.”

According to a report by the news website dni.com, the Rutherford County Industrial Development Board recently approved an incentive package of reduced taxes to the international corporation totaling more than $3.3m in decreased property taxes over a ten-year period.  

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