Tecumseh Products Company, a 38-year resident of the Tupelo-Lee Industrial Park South, on Wednesday afternoon announced a major expansion that will import jobs from part of its foreign operations and increase the 350-person workforce at the Verona plant by 150 during the next five years.
Tecumseh, headquartered in Ann Arbor, Mich., was founded in 1934 in Tecumseh, Mich. It is a leading international manufacturer of air conditioning and refrigeration compressors and motors.
Tecumseh announced in March that for fiscal 2013, it expects net sales to increase in the range of 3 percent to 8 percent from fiscal 2012 levels. Tecumseh reported net income of $22.6 million, or $1.22 per share, on net sales of $854.7 million for the year ended Dec. 31, 2012, financial journals reported.
The announcement was reason for celebration because too often in recent years news coming from established American companies has been about moving jobs offshore or worse, going put of business.
Gov. Phil Bryant’s presence at the event was symbolic of the state’s role in bringing the process to fruition though the Mississippi Development Authority, which works with regional organizations like the Community Development Foundation, industries and local governments to secure investment.
The expansion, a $10 million investment with $4.6 million in state-funded incentives, will help Tecumseh prosper in what has become a highly competitive market with other manufacturers in Eastern Europe, India and China. Some of the jobs added n Verona will be “reshored” from Brazil.
Tecumseh has said it is expanding production of the energy efficient AE2 commercial refrigeration compressor for the North American market.
The AE2 production line is line is expected to be operational by October. Tecumseh also has plans to expand its condensing unit production at the Verona facility, the governor’s office reported.
The MDA provided expansion support for building modifications, infrastructure improvements, and relocation assistance for equipment. The Tennessee Valley Authority also provided assistance.
Tecumseh brand names include Celseon, Masterflux, Silensys, and Wintsys.
Tecumseh’s product line is extensive: hermetically-sealed compressors for residential and specialty air conditioning, home refrigerators and freezers, and commercial refrigeration, indoor and outdoor condensing units, evaporator coils, heat pumps, complete refrigeration systems and authorized spare parts.
Refrigeration and cooling components have a strong worldwide demand that should only increase as populations grow and development expands.