MARYVILLE, Tenn. - Yesterday's (5th December 2005) announcement of a new DENSO manufacturing plant in Maryville is the latest example of good news as a result of people in Blount County working together.

"We're fortunate here because of our firm commitment to teamwork," says Joe Dawson, chair of the Blount County Economic Development Board, noting that the Maryville site competed with sites in Mexico, California and Michigan for the new facility.

Dawson commended the strong support from elected officials at all levels, including members of county commission and city council; state officials including Governor Bredesen and Matt Kisber, commissioner of economic and community development; The Tennessee Valley Authority, and federal legislators including Congressman Jimmy Duncan and Senators Bill Frist and Lamar Alexander.

"We enjoy a strong tradition of governmental cooperation and leadership throughout this community, and a willingness to do what it takes for the good of the community," says Fred Forster, president and CEO of the Blount Partnership. "We brought a variety of organizations to the table to make this project a reality, and yesterday's resulting announcement is solid proof of the benefit of partnerships within Blount County."

The new DENSO facility will be built on property adjacent to DENSO's existing location in the Blount County Industrial Park. The 55-acre addition to the park will house a state-of-the-art facility that will employ approximately 500 associates by 2010 and use the management team already responsible for existing DENSO plants in Maryville.

"DENSO's decision to expand their operation in Maryville highlights several things we've known for a long time: One, Blount County is a great place to live and work. Two, cooperation and teamwork among city and county officials continue to bring good things to our entire community. And three, 'Made in Tennessee' means quality," says Sen. Alexander. "Over the past 25 years, Tennessee has become the fourth largest auto producing state in the nation and the home of hundreds of auto parts suppliers. Over the next 25 years, I think Tennessee will become the state with the most auto suppliers. DENSO is taking us closer to that goal."

Joe Swann, mayor of Maryville, recalls the community's first contact with DENSO in 1988, and the cooperative effort that made the first plant a reality in 1990. Since then, the company has gone through six expansions and now ranks as the community's top employer, with approximately 2,500 employees.

"We've been working on this project, off and on, for about five years. All along, we had a never-say-die attitude. We never gave up," Swann says, explaining how the City of Maryville optioned the property and renewed the option several times before assigning the option to the Economic Development Board for execution.

"We hung onto that property, hoping the project would materialize," Swann continues. In addition to working closely with the property owner, he says that community leaders also visited with DENSO leaders in Japan.

Even the City of Alcoa was involved in the partnership, because the project involves infrastructure improvements at Middlesettlements Road, which is within the Alcoa city limits.

"Like so many other good things in Blount County, this announcement came as the result of cooperation between our cities, our county and a variety of other organizations," says Joe Dawson, chair of the Economic Development Board. "By working together, we give a company the whole picture and a solid understanding of our whole community," Dawson explains why the partnership approach is so successful.

Dawson notes that many individuals helped make yesterday's announcement a reality. "We enjoyed a strong relationship with the dynamic project team of officials at DENSO," he explains, also recognizing the work by Gary Hensley, city manager of Maryville; Mark Johnson, city manager of Alcoa; Dave Bennett, finance director for Blount County; and Bryan Daniels at the Economic Development Board.

"Our cooperation helps companies feel comfortable they're getting the total picture, with no surprises, unnecessary bickering or other difficulties. It reduces their risk," Dawson says.

One of the issues that came up during deliberations was the workforce in Blount County. While the community's low unemployment rate demonstrates a vibrant economy, company officials weren't sure the required workforce was available.

The City of Maryville contracted with Matt Murray, professor of economics at the University of Tennessee, to study the region's workforce. Using standard, available data from an eight-county area, the study found an "ample labor pool in the region," Murray reports.

The study cited a population that is experiencing higher growth rates than other parts of the state or country, recent losses in manufacturing jobs creating a ready and skilled workforce, and commuting patterns that reveal approximately one-quarter of the region's workers travel across county boundaries between work and residence.
In addition, the study referenced strong public education systems with competitive test scores, low cost of living and exceptionally low household and business tax burdens.

"We gathered the evidence of the availability and quality of our workforce using objective, pre-existing data," Murray says. "It's difficult to quibble with the facts and credible numbers."

Murray says that DENSO will be able to attract top-of-the-line employees for four reasons. "First, they offer above-average wages, along with excellent fringe benefits. Then, they demonstrate their competitive strength with frontier-level investments in their productivity capacity. Finally, they are a good corporate citizen," Murray says.
"TVA is pleased to be a partner with Maryville, Blount County and other local and state partners to assist with DENSO's expansion," says John Bradley, TVA senior vice president of economic development. "We congratulate DENSO on this business decision that will provide additional quality jobs for residents of these communities and the region."

DENSO is the third largest manufacturer of automotive products in the world. Its operations in Maryville manufacture starters, alternators, instrument clusters and electronics.

DENSO's Tennessee operations are ISO 14001 Certified for Environmental Operations, recently receiving the Japan-America Society of Tennessee's Good Corporate Citizen Award.

"DENSO has long been a terrific corporate citizen," says Dave Bennett, Blount County Finance Director, for Beverly Woodruff, Blount County Mayor. "With yesterday's announcement, they not only strengthen their ties in Blount County, but they also show their strength as an international leader in their industry. For Blount County and the entire East Tennessee region, DENSO's selection to expand here will provide first-class jobs within a first-class company for thousands of our citizens for generations to come."

Community Impact
of
DENSO's New Facility

• $185,000,000 investment and up to approximately 500 new jobs by 2010 at DENSO's new facility in Blount County.
• During construction, $30 million of new income will be realized in Blount County.
• 420 new jobs generated in the community to support this facility.
• Ongoing operations from this facility will create $32 million of new income for services DENSO will need.

Information provided by the University of Tennessee Economic Department

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