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efacec | Rincon, GA

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SNAPSHOT

  • Client: efacec
  • Project: Site Selection, Real Estate and Incentives Negotiation for a Power Transformer Manufacturing Plant
  • Location: Rincon, GA

DETAILS

Objective:

Identify the optimal location for a 470,000 sq. ft., $170 million production facility to manufacture core-type and shell-type power transformers. Site selection objectives included:

  • Locate on a rail line to avoid highway weight and dimensional restrictions on shipments of finished goods weighing up to 650,000 pounds
  • Low land costs
  • Minimal weather and seismic risk
  • Desirable labor union environment
  • Excellent availability of highly skilled labor

Challenges:

efacec supplies power transformers to electric utilities for use in large substations, and many of the company’s products are oversized and overweight. In addition, selected raw materials are sourced overseas and some finished goods are exported. The selected site for the new manufacturing operation had to be close to a major seaport and located on a rail line. In addition, large power transformers are virtually hand-built to customer specifications, which mandated the need for 700 highly skilled workers drawn from a large, high-quality labor pool.

Solution:

efacec's complex site selection requirements were easily modeled in Indsite®, Colliers’ site selection optimization model. Indsite® identified 35 rail-served locations near major ports. We compared and stratified the options to identify those with the best labor union environment, the largest pool of well-educated workers, and lowest risk of hurricanes and seismic events.

Value Added: 

  • Acquired 50-acre site with rail at no cost to EFACEC.
  • Identified market to recruit and hire 700 workers
  • Negotiated incentive and expense reduction of $11 million: recruiting and training funds, permit fee waivers, property and income tax abatement, and infrastructure improvement for rail siding.