Moll Industries Inc. is negotiating to lease a shuttered Flextronics International Ltd. plant in Texas and consolidate two of its facilities there in a cost-cutting move.
Moll, which is planning to emerge from Chapter 11 bankruptcy in the spring, would like to move its operations in San Antonio and Austin, Texas, to the new site halfway between those cities in New Braunfels, said Chief Financial Officer William Teeple.
The Davie, Fla.-based company made a presentation Feb. 11 to the New Braunfels City Council and reviewed an offer of tax incentives. The company also is considering a location in Round Rock, near Austin, but would like to move forward in New Braunfels, he said.
``Our intent is to finalize our lease negotiations and pursue this opportunity in New Braunfels,'' Teeple said.
The new location would employ 250-275 in a 104,000-square-foot facility, and have 65-70 injection presses, slightly less than the two current plants put together, he said. Those two plants currently employ about 280.
The New Braunfels location was built specifically for injection molding, and Flextronics served Dell Computer Corp. there before that business migrated overseas. Flextronics closed the operation in May. At the time it was the city's largest private employer, with 1,100 jobs, according to local news reports.
``It's a gorgeous facility that has all the infrastructure in place to take somebody in as a molder,'' Teeple said. ``It's just made-to-order.''
The company hopes to complete the transfer in July. Teeple said the move will reduce operating costs ``substantially,'' but he declined to be specific.
City officials have offered Moll a $600,000, no-interest loan to help with relocation, and the city will forgive $150,000 of that if the firm employs at least 75, said New Braunfels Mayor Adam Cork.
The city also will abate 75 percent of the taxes Moll would pay to the municipal government during 10 years, which amounts to about $19,000 a year, Cork said. Also, the plant is in an economic development enterprise zone, which could qualify it for additional tax breaks, Teeple said.
New Braunfels, a city of about 40,000, has lost about 2,000 jobs in the past 18 months, including the cuts at Flextronics, Cork said.