O'Sullivan Industries, with headquarters in Lamar, Mo., confirmed Thursday that it is coming to Cedar City and will eventually employ 400.
At a gathering of several hundred local leaders and residents, Gov. Mike Leavitt said the furniture manufacturing company is exactly the kind of industry the state is seeking.Leavitt said O'Sullivan's announcement "means our strategy has become successful, and it adds to the weight that Utah is fast becoming a remarkably sought-after place." He said that first and foremost it means employment for "our children and our grandchildren" with better than average jobs. And it's clean industry, he added.
The company announced that it will build a manufacturing and distribution center. Initially, there will be 50 employees with plans to grow to 200 in the first year.
O'Sullivan announced a western expansion in March, but, until Friday, hadn't named a specific location.
The 530,000-square-foot plant will be located west of Cedar City on the north side of U-56. The plant should be complete by October of this year.
Daniel F. O'Sullivan, chairman and CEO, said the company decided to locate here because of the quality of life, the highly educated work force and the cultural aspects of the area. "Every aspect we were looking for was here."
He said the company wanted to be as close to the West Coast as possible without actually being in California. "Cedar City represented everything we looked for all over the Northwest, and we're very proud to be here," he said.
Gov. Leavitt also said, "These are great jobs for this area, paying well over the average wage in Iron County. In addition, O'Sullivan's impact will include a substantial capital investment, and the use of Utah sources for ongoing purchases of goods and services."
O'Sullivan indicated the beginning wage would be $6.50 for unskilled laborers, moving to $12 and $13 dollars for skilled equipment operators. He says the company attempts to employ people over a long period of time. "We are very much a family-oriented company. We stick with them and they stick with us."
In addition to the plant in Missouri, the company also has a center in South Boston, Va., that opened in 1989. The company was founded in 1954 by O'Sullivan's father, Tom.
O'Sullivan said the company is the seventh-largest furniture manufacturer in America today and plans to move up soon to the sixth spot nationally.
According to Vice President Terry Riegel, O'Sullivan's manufactures ready-to-assemble furniture that includes basic bookcases to complete home entertainment centers, home-office centers, computer desks, printer stands, portable microwave kitchen stands and more.
"We sell to Wal-Mart, Kmart, Office Depot, Office Max and all of those type of companies," said Riegel.
Last week, the Utah Board of Business and Economic Development voted to extend a $400,000 loan to O'Sullivan if they would relocate their plant to Utah. Another $50,000 loan will be available if a Utah contractor is hired to build the facility.
Fred Adams, founding producer of the Utah Shakespearean Festival, conducted the formal welcoming program at the Randall Jones Theater. He paid tribute to Scott Rasmussen of Utah Power for playing a major part in bringing the new company to Cedar City.