AAON Inc. plans to create 125 new jobs over five years and build a new facility in Longview as part of a $28 million capital investment expansion.
The premium HVAC equipment manufacturer wants to relocate the manufacturing of its SA Series self-contained unit product from Tulsa, Oklahoma, to its Longview facility on Gum Springs Road, where 422,000 square feet of manufacturing space will be added within the next three years.
AAON Marketing Manager Eric Taylor said the Longview facility already produces a smaller self-contained unit, but the SA Series is a larger product that will have its own dedicated assembly line.
Pay range for the jobs will be $15 to $18 an hour, Taylor said.
AAON President Gary Fields praised the East Texas workforce.
“We continue to strengthen our business with the expansion of our Longview operation. The exceptional workforce in the East Texas area provides a great opportunity for us to grow the company and create value for our customers and stockholders,” Fields said.
Longview Economic Development Corp. made the announcement Friday after its board of directors approved a five-year, $1.25 million performance agreement with AAON. LEDCO also will recommend that the city of Longview and Gregg County each extend 50 percent property tax abatement incentives to the company.
“We couldn’t be more excited about AAON choosing us to expand their footprint,” LEDCO board Chairman Conner Cupit said, “and we feel like using taxpayer dollars to incentivize them to choose Longview is exactly what LEDCO is designed to do. We couldn’t be more excited about it and are extremely excited to see the great things to come from this company adding this value not only to themselves but also to the community.”
AAON executives have 90 days to agree to the terms of LEDCO’s offer.
“I am thrilled that AAON has chosen to locate a new portion of their operations to their Longview facility,” Mayor Andy Mack said in a statement. “Existing companies are the backbone to our community, and we are honored with their decision to invest, grow and prosper in Longview.”
According to LEDCO, AAON will make a capital investment of $28 million, including the construction of a new facility, equipment and the creation of 125 new jobs. The first phase of facility expansion, 195,000 square feet, will be completed by October 2020. The ultimate build-out of 422,000 square feet is tentatively scheduled for 2022 completion.
The performance agreement calls for LEDCO to provide $250,000 yearly to AAON over a five-year period provided that the company adds 25 full-time primary jobs at its Longview facility in each year.
“AAON has been an incredible community partner for Longview since 1991. We are pleased that AAON has selected our community for their expansion project. This decision certainly is a testament to the work ethic and capabilities that Longview can provide,” LEDCO President/CEO Wayne Mansfield said.
The announcement regarding AAON comes on the heels of Longview City Council’s vote Thursday to approve a 10-year tax abatement to Indevco Plastics, which is making a $9 million investment into its facility on Jordan Valley Road. Indevco is adding 40 new jobs over the next four years, Mansfield said.