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Financing woes stall redevelopment of former Kaneka facility in Blackman Township

By Holly Klaft
Jackson Citizen Patriot
Friday June 26, 2009, 12:24 AM

Harsh economic conditions are hampering a company’s plans to redevelop the former Kaneka Texas Corp. facility in Blackman Township, officials said.Kaneka officials told local economic development leaders Thursday that they will give Maverick Industries more time to secure financing to buy the plant at 4335 County Farm Road.

However, the Japanese company will make changes to staffing at the facility, sometimes leaving just one employee there to maintain it, said William Abbott, a Jackson attorney who represents Kaneka.

Kaneka left three employees at the plant after it shut down operations there last year.The employees were maintaining the facility and helping Maverick President Thomas Grace show the building to potential investors.

Maverick Industries has been working to purchase the 82,000-square-foot plant since October, but the sour economy has made it difficult to secure the financing needed to buy the building, Grace said.

On Wednesday, Grace worried the company might pull its remaining employees from the plant and sell the equipment inside, effectively extinguishing his plans to start his business there.

“The economy is dire and the banks won’t open up the accounts,” Grace said. “What are we supposed to do?”

Grace could not be reached for comment Thursday.

Abbott said Kaneka intends to keep the equipment inside the building and still is willing to work with Maverick on a purchasing agreement.

“They’re still ready to go forward,” Abbott said. “Kaneka has been patient on this transaction, but they would like to move forward one way or the other.”

Kaneka wants to begin marketing the building to other individuals or companies if Maverick does not move to purchase it, Abbott said.

Kaneka will return to re-evaluate the status of a purchasing deal with Maverick in September, said Scott Fleming, president and CEO of The Enterprise Group, Jackson County’s economic-development organization.Kaneka has been waiting for Maverick to put about a $75,000 deposit on the building before it solidifies a purchase agreement, officials said.Fleming said he and other local officials have been working hard to ensure the plant reopens with new work.

In February, Maverick — which would design and produce packaging solutions for a variety of industries — was awarded state tax credits valued at $1.2 million. Blackman Township also approved a seven-year tax abatement.

The company was expected to hire 90 people, including some who had worked at Kaneka, within five years.

“We did everything possible,” Fleming said. “Financing is a problem. In these hard economic times it’s almost impossible and it takes a long time. If there’s anyone to blame here, it’s the economy.”

Kaneka spent eight years at the Blackman Township plant making energy absorbers — the foam between the plastic and metal bumper pieces — for the automotive industry.

It transferred its automobile bumper business to the Indianapolis-based Createc Corp.