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Briggs & Stratton’s plans to expand into a second Murray, Ky., facility have been delayed indefinitely until economic conditions are more favorable to the company.
Rodney Bohannon, Briggs plant manager in Murray, says the corporation decided to re-evaluate the specific components of its strategic growth plans for the local facility. With the evaluation, all construction activities of the new fuel and carburetor plant have been stopped. He said no time frame has been established for the expansion project to resume. Briggs & Stratton manufactures air-cooled gasoline engines for outdoor power equipment.
“This announcement in no way represents a softening demand for product out of our Kentucky operations,” Bohannon says. “We will continue to operate at peak engine capacity and complete existing expansion plans at our Main Street facility. We’ve been part of the Murray community for years and are pleased with the tremendous support given to our employees and the business as we continue to be the world’s largest producer of engines.”
In August, Briggs & Stratton announced plans to expand its operations to a second facility in the Murray-Calloway County Industrial Park that would serve primarily as a carburetor and fuel systems production plant. Ground work had been completed in preparation for the 65,000-square-foot facility which was suppose to create 80 new jobs in the next couple of years and make a new $11 million capital investment.
But according to Bohannon, those jobs are on hold.
The new facility was to also free up about 50,000 square feet for another assembly line at the Main Street plant, which has about 300,000 square feet of space. Another Main Street facility expansion is adding 20,000 square feet on the building’s east side for more assembly work. Briggs & Stratton is Calloway County’s largest employer with more than 1,000 workers.
“We’ll be running at peak capacity,” Bohannon says.
Bohannon did not elaborate on the factors contributing to the corporate decision to delay the expansion project. However, one of Briggs’ largest customers – Murray, Inc. – filed bankruptcy Nov. 8, citing reduced profits and inadequate cash resources. The Brentwood, Tenn.-based company filed Chapter 11 bankruptcy, allowing it to continue making lawn mowers, edgers, trimmers, shears and snow-removal equipment, despite a financial crisis involving its biggest investor, D’Long International Strategic Investment Co.
The share prices of many D’Long companies plunged following disclosures it had pledged stocks as collateral for bank loans, according to an Associated Press story. D’Long is a Chinese company and the government there put a state agency in charge of the investment company.
“Murray is one of our largest customers and they are going through some structural changes,” Bohannon says. “They continue to be a customer.”
Murray-Calloway County Economic Development Corporation President Mark Manning said the decision to postpone construction of a new facility is not reflective of the local economy.
“As an outsider, you can look at the cost of aluminum and other external factors they have no control over and understand why they want to step back and look at their plan,” Manning said Monday. “My concern is I don’t want people suddenly to think the company is in trouble. They aren’t. They are growing their market shares. They are good people. They have a bright future.”
He also didn’t question the decision to delay expansion and believes Briggs will be around for a long time in Calloway County.
“I have every confidence that Briggs & Stratton will remain a strong player in Murray, Kentucky,” Manning says. “From time to time, every business runs into unforeseen circumstances. If Briggs thinks this is the right thing to do for right now, they ought to know. They are the world leader in their industry and will recognize additional opportunities for expansion in the future. “It’s disappointing, but it’s not like we’re losing something we already have.”