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American Standard Brands is withdrawing plans to establish a new manufacturing and distribution facility in Davidson County, Tennessee, the company announced today.
The company has notified the Governor's Office, the Tennessee Department of Economic and Community Development, and Mayor Barry's office that it will withdraw its plans and its request for economic incentives. The action is in response to business consolidation plans that have made a new manufacturing and distribution plant uneconomical now and for the foreseeable future.
"While we have decided to withdraw our plans for this particular project at this time, American Standard has been very impressed with the quality workforce and favorable business environment in Davidson County," said Steven Delarge, chief executive officer and president of LIXIL Water Technology Americas. "Tennessee has a welcoming environment for business and industry.We have an existing facility in Nashville and will continue to operate out of that facility and will certainly consider the area for future expansion plans."
In July, American Standard announced plans to expand its operational footprint by establishing a new manufacturing and distribution facility in La Vergne, Tennessee. The company undertook significant efforts to facilitate the move to Tennessee, working with external consultants, state and local resources, to support these plans. However, in the last month, it became clear that American Standard needed to focus on improving the capabilities and cost position of its existing operations in the U.S. As a result of this change in the Company's business plans, American Standard will not be moving operations to Tennessee at this time, and will withdraw all applications for incentives offered in connection with that move. To date, no incentives have been received by American Standard in connection with the planned expansion.
"Throughout this process, the State of Tennessee, the Governor, local government and officials in Nashville have shown us tremendous hospitality, support and cooperation around our planned expansion and we value their continued support. Our decision is not, in any way, related to any lack of cooperation from the State, the Governor, or local government. Indeed, we wish to sincerely thank Governor Haslam, Mayor Barry, Commissioner Boyd and the many members of state and local government who have supported our efforts," said Delarge. "This is all about the economics of the project at this time. I cannot stress enough how important it was to us to have partnered with Davidson County, and we look forward to potential Tennessee partnerships in the future."
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