Novus Advanced Manufacturing to Expand Its Operations in Tennessee
St. Joseph, Tennessee – November, 2018
Novus Advanced Manufacturing, LLC, an emerging innovative leader that specializes in manufacturing steel panels for the hospitality and retail center sectors, will be expanding its operations in St. Joseph, TN (Lawrence County). The company, a minority-owned and led business, is experiencing growing demand for its products and services. The expansion project will allow Novus to meet this demand and continue to establish itself as a leader in the manufacturing of steel studs and steel tracks, which are components of the expanding lines of panelized walls and trusses.
The expansion project is made possible as a result of Novus closing on $17 million in financing that includes the use of federal New Markets Tax Credit (NMTC) funding. Novus partnered with BWC Consulting, a seasoned minority-owned and led economic development strategy and finance consulting firm, to secure the NMTC funding and close on the transaction. “Without the knowledge, expertise, and grit that BWC brought to the table, closing on this transaction would not have happened,” states David Hunt, CEO of Novus.The NMTC allocation was provided by Stonehenge Capital, a nationally recognized marketplace leader in federal and state incentives that provides transformational capital to stimulate private capital investment in targeted industries and spur economic growth in economically distressed areas.
The expansion project will consist of Novus acquiring an 18,000 SF manufacturing plant located in an economically distressed area in St. Joseph, TN. The three-acre site will be expanded by the addition of two new buildings that will connect to the existing site to create a 40,000 SF facility. The existing building will be gutted and updated with a new electrical grid, wi-fi infrastructure and state-of-the art roll-former digital equipment. These advanced machines increase production efficiency by approximately 30 percent by automating changes in gauge sizes versus having to shut down, retool, and reboot older roll form machines over a period of two to three hours. The expanded plant will also serve as the first training site for innovative framing and construction for hoteliers and other retailers. The project is expected to create more than 100 new remunerative jobs, and add momentum to attracting additional private capital investment to St. Josepth and Lawrence County.
Construction is slated to begin by the end of the year and the project is expected to be completed by Summer 2019.
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