A southeast Georgia company has formed a joint venture with a major footwear producer to manufacture a new product for Wal-Mart, creating at least 250 jobs.
Wal-Mart announced Thursday that McPherson Manufacturing and Elan-Polo Inc. will start producing an “injection-molded” sports slip-on at a plant in Jeff Davis County, beginning in March 2014.
Hazlehurst-based McPherson is a major supplier of filters for heating, ventilation and air conditioning systems throughout Wal-Mart stores and facilities. Elan-Polo’s shoe brands, all produced overseas, include Crevo, Vogue and ExcerSteps. The Nashville and St. Louis-based company’s brands also include Hasbro toys, Build-A-Bear Workshop and Riddell football wear.
The new slip-on, which will be produced at a Hazlehurst plant, initially will be exclusively for Wal-Mart stores as part of the retailer’s commitment to buy $50 billion in U.S.-made products in the next decade.
McPherson President Jay McPherson told The Atlanta Journal-Constitution the companies will invest up to $30 million to get the plant up and running. He said 185 jobs will be created initially and the remainder within two to three years, although the eventual number of jobs could increase over time, he said.
The production will be in a former textile factory and a building that once housed Emerson Electric. The 50-50 joint venture is called EP American Footwear.
“We will see genuine economic value added through shorter lead times, more efficient purchasing and savings on shipping and oversight expenses,” Elan-Polo Chief Executive Officer Joe Russell said in a statement. The companies did not disclose sales projections after they start supplying Wal-Mart.
Many of Wal-Mart’s suppliers are already producing more of their products in the U.S. as they face higher costs in China and elsewhere.
“A lot of suppliers are at a tipping point where it’s making more sense to produce more in the U.S.,” said Wal-Mart spokesman Randy Hargrove, who cited rising wages, production and energy costs overseas.
The new Jeff Davis County production was one of three ventures announced Thursday by Wal-Mart President and Chief Executive Officer Bill Simon at the SelectUSA Investment Summit in Washington, D.C., a Commerce Department project to coordinate efforts to attract foreign investments.
Simon also said EveryWare Global Inc. will produce canning jars for Wal-Mart in Monaca, Pa., and Louis Hornick and Co. will produce textiles at a new plant in Allendale County, S.C.
Since its January announcement that it plans to buy more U.S.-made products for its stores, Wal-Mart said suppliers have committed to creating more than 1,600 jobs and investing more than $100 million in U.S. manufacturing.
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