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Schwan relocates headquarters to Rutherford County

By Chris BARKER , 18-Nov-2013
Last updated the 18-Nov-2013 at 15:35 GMT

Schwan Cosmetics has moved its USA headquarters from New Jersey to Rutherford County in North Carolina in order to take advantage of a higher quality of life and a more skilled work force.

The company will invest $38m in the new facility, which is projected to open in early 2015. The location is expected to create 250 new jobs, with an additional 200 being transferred from Schwan’s existing facility in Lewisburg, Tenn.

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

Barbara Bauer-Kropf, executive vice president of sales for Schwan, commented: “The new Schwan Cosmetics USA will be a full-service private label supplier, continuing to build on Schwan Cosmetics’ heritage of developing and introducing innovative, market driven color cosmetics.”

A stronger workforce

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

The firm’s previous headquarters facility was in Piscataway, N.J. The new location will be a purpose-built 173,000 square facility.

Scwan’s new location, Rutherford County, has a relatively high rate of unemployment compared to the rest of the USA, with figures reaching over 12 percent as of 2012.

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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