New company taking shape in industrial park

Published 2:00 am Wednesday, April 7, 2010

Tucked away off a bordering road of Breeding Industrial Park a new building and a new enterprise sprang up in late winter.

McCord Leakless Sealing Co., which has done business for 19 years as a joint venture between Federal Mogul and Nippon Leakless, formally dissolved on March 31, according to Limestone County Industrial Development Association President Tom Hill.

“That concluded 19 years of business as a joint venture of the two companies,” said Hill. “The new company, American Leakless, will assume all of the business of Honda of America manufacturing.”

A year ago company officials came to the Athens City Council asking for an abatement of all state and local non-education taxes for 10 years and all non-construction related sales taxes for the new company, American Leakless Co. LLC.

The 10-year abatement in ad valorem taxes is $24,433 and the one time sales tax abatement is $52,500.

The two companies agreed to separate the production of sealing products, Hill said.

“Federal Mogul will continue to operate in its current location at 1500 Freeman Avenue,” Hill said.

In February 2009, Federal Mogul secured tax abatements of $75,512 per year and a one-time sales tax abatement of $74,466 to relocate equipment and 110 jobs from another North Carolina plant to Athens. Hill said most of the workers did not move with the jobs, and the positions were filled locally.

American Leakless officials are expected to spend $5.5 million to construct the new sealing company in three phases located behind Steelcase.

The move leaves about 200 employees remaining at Federal Mogul.

At one time, the joint venture McCord Leakless employed some 80 to 90 people, Hill said.

Plant Manager Toshio Horiuchi said when McCord Leakless formally dissolved it employed 32 workers. He said the new company has no immediate plans of increasing employment.

“At the moment we have no intention of increasing employment unless business goes up,” said Horiuchi.

He said American Leakless operations still are being conducted from the offices of Federal Mogul.

“We will begin moving in mid-April in two phases,” said Horiuchi. “We will be moving the presses and machines over the next four months and should be in by September 2.

“In the second phase we will be moving our chemical line. We will build a new building for the chemical line next year or the year after.

“We’ll begin designing the new building next month.”