Electrolux Provides Awarded Contract Update
Reiterates commitment to Shelby County minority- and women-owned businesses
Electrolux today outlined the awarded contracts to-date to subcontractors for the construction of its new North American Cooking Products manufacturing center in Memphis. Electrolux also provided specific steps it is taking to solicit bids and award contracts to Shelby County minority- and women-owned businesses (MWBE).
“Since the beginning, Electrolux has worked closely with Mayors Wharton and Luttrell to deliver on the commitment to Memphians to heavily involve Shelby County’s minority businesses in our construction process,” said Jacob Burroughs, Electrolux Project Director. “We want to be responsive to the community and share the steps and plans we, along with the Mayors, have to ensure construction dollars go to Shelby County minority firms.
“We remain committed to providing a meaningful local return on the investment made in us and appreciate the community’s support,” Burroughs said.
Electrolux General Contractor, Yates Construction, has engaged the local community to maximize minority inclusion and is working closely with the Mayors and minority organizations. The subcontracting award phase of the project has now begun and is expected to continue for four months.
As part of the $266 million manufacturing project, Electrolux itself will contribute more than $100 million of capital. Once operational, the company will also invest capital in the plant on an annual basis.
Current Economic Impact
- Electrolux intends to spend more than 50 percent of the $80 million construction contract locally, with Shelby County expected to receive the vast majority of contract dollars.
- To date, $15.3 million of the $80 million construction contract has been awarded.
- Of this $15.3 million amount, 94 percent, or $14.5 million, was awarded to local companies.
- Additionally, of the $15.3 million amount, 41 percent, or $6.3 million, was awarded to local MWBE firms.
- The MWBE companies that were awarded contracts are:
- CDA, Inc. (located in Shelby County)
- MIG Construction Services (located in Memphis MSA)
- MJ Construction/Sidle Construction Joint Venture (located in Shelby County)
- SMS Contractors (located in Shelby County)
- South Memphis Fence (located in Shelby County)
- The majority of the construction spend is yet to be awarded and is expected to continue for four months.
MWBE Assistance Previously Provided
- Hosted broad construction symposium to outline subcontractor opportunities
- Hosted MWBE construction symposium to outline subcontractor opportunities
- Met with Mid-South Minority Business Council to discuss subcontractor opportunities
- Partnered with Mid-South Minority Business Council to host training sessions on bid development
MWBE Assistance Going Forward
- Engagement with local suppliers and contractors
- Training assistance in bid preparation
- Prevailing wage training
- Risk management training
What to Expect Going Forward
“With these efforts and the Mayors’ support, we believe that we will meet and surpass our goal of 15 percent of the construction spend going to minority- and women-owned area businesses,” said Burroughs.
“We look forward to working with Yates Construction on the Electrolux manufacturing project. This is a great opportunity for our company and the City of Memphis,” said Cliff Dates, CEO, CDA Security Firm.
“Even in the early stages of this project, we began thinking of ways we could maximize minority participation, similar to our project at Tiger Lane. Today’s progress report is one sign that, as the Electrolux project moves forward, both Electrolux and Yates are committed to ensuring and maximizing minority participation,” said Memphis Mayor A C Wharton.
“We appreciate the partnerships with Electrolux and Yates Construction. Its vital small businesses from Memphis and Shelby County will be part of the project. We’ll continue to monitor the progress of hiring local contractors. We’re encouraged by the commitment shown by officials with Electrolux and Yates,” said Shelby County Mayor Mark H. Luttrell, Jr.
About the Electrolux Memphis Cooking Facility
Electrolux plans to build a world-class facility, designed to utilize advanced manufacturing processes. When fully operational in 2014, the plant will be a center of excellence for its cooking products; will employ more than 1,200 people and will manufacture built-in and specialty cooking products. Electrolux has a longstanding commitment to safety and sustainability, both in its manufacturing processes and in the products it makes. The facility will be located in Frank C. Pidgeon Industrial Park.
Memphis was the clear choice for the facility for a number of reasons including:
- Synergies with other Electrolux plants – The company will be able to better leverage its existing base of resources, especially those at its cooking operations in Springfield, Tenn.
- Memphis’s resources and location advantages — Electrolux was also attracted by the skilled labor pool in the Memphis area, and the area’s central location and excellent logistics, which will improve access to the company’s key markets, customers and suppliers.
Electrolux is a global leader in household appliances and appliances for professional use, selling more than 40 million products to customers in more than 150 markets every year. The company focuses on innovative products that are thoughtfully designed, based on extensive consumer insight, to meet the real needs of consumers and professionals. Electrolux products include refrigerators, dishwashers, washing machines, cookers, air conditioners and small appliances such as vacuum cleaners sold under esteemed brands such as Electrolux, AEG, Eureka and Frigidaire. In 2010 Electrolux had sales of US$ 14.7 billion and 52,000 employees. For more information, go to http://newsroom.electrolux.com/us/.