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AMMUNITIONof Marshall, Texas

INSIDE:

ON THE ROAD TO RIO . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . PAGE 2

HISTORY OF MAXAM, RIO & MARSHALL . . . . . . . . . . . . . . . . . . . PAGE 4

FATHER-DAUGHTER MEDCO LEADERS BIG PUSH BEHIND RIO . . . . . PAGE 6

CITY WORKS WITH OTHER

AGENCIES TO ENTICE INTERNATIONAL COMPANY . . . . . . . . . . . . . PAGE 8

COLLABORATION BETWEEN

CITY, COUNTY RESOURCES HELPS MAKE RIO A SUCCESS. . . . . . . PAGE 10

SUPPLEMENT OF THE MARSHALL NEWS MESSENGER - JUNE 25, 2015

JUNE 2015 | OFFICIAL OPENING OF RIO AMMUNITIONIN MARSHALL BUSINESS PARK

A COLLABORATIVE

EFFORT OF

MEDCO,

CITY OF MARSHALL,

HARRISON COUNTY,

MAXAM AND

RIO AMMUNITION.

COMMEMORATIVE EDITION

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RIO AMMUNITION | COMMEMORATIVE EDITION

DECEMBER 2009First contact with Maxam/Expal.

DECEMBER 2011Delegation from Spain checks out property atMarshall Business Park; meets with MEDCOChairman Leslie Chambersand staff.

MAY 2012MEDCO seeks prospects for former Mecarand Chemring site.

JULY 2012Rio/Maxam and Expal delegation meetwith city and county elected officials andrepresentatives of Texas State TechnicalCollege during dinner hosted by MEDCO;Expal USA, a division of Maxam, leasesproperty in industrial park for militarysubcontracting business.

NOVEMBER 2012Team makes an exploratory visit to Marshallin regard to Expal operations and anadditional site for future new operations.

MARCH 2013Rio Ammunition sends letter of intent inconsideration of Marshall as the site for itsU.S. shotgun shell manufacturing facility.

JANUARY 2014Rio/Maxam representatives sign agreementsfor incentives, leases and guarantees;celebration dinner to commemorate eventheld with Rio/Maxam/Expal representativesand MEDCO board and staff.

FEBRUARY 2014Construction contract signed withWieland-Davco.

APRIL 2014Groundbreaking ceremony; dirtwork begins.

JUNE 2014Concrete work begins.

AUGUST 2014Design finalized and guaranteed maximumprice for the construction/development of a105,000 square foot manufacturing facilityestablished at $9,668,800.

OCTOBER 2014MEDCO board approves final agreementswith Rio/Maxam.

JANUARY 2015Texas Workforce Solutions hold job fair forRio Ammunition.

JUNE 2013Delegation from Marshall, including theMEDCO executive director, mayor and arepresentative from the Texas Governor’sOffice travels to Spain to meet with Maxamofficials and to tour Maxam productionplants and facilities.

JULY 2013MEDCO provides general letter of intentoutlining incentives for Rio/Maxam to locatefacility in Marshall.

JULY - NOVEMBER 2013Meetings to obtain proposals for new facilityconstruction.

SEPTEMBER 2013In anticipation of development,MEDCO sells timber from two sites in thebusiness park; uses revenue to clear theproposed Rio site.

NOVEMBER 2013City commission approves MEDCO’sproposed incentive proposal for Rio/Maxam.

DECEMBER 2013Negotiations held between Rio/Maxamand MEDCO on incentives and building ofnew facility.

JUNE 2015 | OFFICIAL OPENING OF RIO AMMUNITIONIN MARSHALL BUSINESS PARK

The story of how a global organizationcomprised of 140 companies located in 45countries, employing 6,000 people, choseMarshall as the site for its state-of-the-artammunition factory began more than fiveyears ago.

It was a choice that might perplex thoseunfamiliar with Marshall and HarrisonCounty’s long history of involvement withammunition and armaments in everymajor war and conflict since the Civil War,from the production of black powder forConfederate troops to the destruction ofPershing Missiles under the Nuclear ArmsTreaty in the 1980s.

But as Donna Maisel, executive directorfor the Marshall Economic DevelopmentCorp. noted, “the arms and ammunitioncommunity is a pretty tight-knit group.”

And it was through a connection with

three other international armament andammunition manufacturers with locationsin Marshall – Mecar, Chemring and Expal– that led Marshall to it’s connection withMaxam – an industrial group foundedin 1872 by the inventor of dynamite andoriginator of the Nobel Prize, Alfred Nobel.

Based in Spain, Maxam is an “industrialgroup leader in the development,manufacture and sale of civil explosivesand initiation systems for the mining,quarry and infrastructure industries,”which includes the production of chemicalsand fertilizers, products for the defenseindustry, energy and environmentalconsulting and hunting cartridges andgunpowder for sporting use.

The armament companies came andwent – Mecar USA was bought byChemring, when Chemring closed its

Marshall site, another defense contractorleased the site and hired the laid offemployees – but there was one constant– Steve Dart. The president of Belgium-based Mecar USA, Dart was retainedin the position after the purchase byChemring. When Chemring closed, Dartcontacted Expal, a subsidiary of Maxam,about locating in the Marshall facility.

“We had been talking to Maxam andExpal before the (Chemring) propertybecame available … through Steve Dart,and his connections with Mecar andChemring,” Maisel said.

Because MEDCO had property in theMarshall Business Park that had beenspecially designed for armsmanufacturing,MEDCO had been recruiting fromindustries related to that area, Maisel said.

When it was learned that Maxam/Expal were looking for a site for theirU.S. operations, Maisel said that Dartand MEDCO Chairman Rusty Howell,who knew a member of the Maxam board,paved the way for a meeting.

“We had visited off and on withthem,” Maisel said. “They sent severaldelegations over to view our community,and then in May 2012 we got the propertyback from Chemring.”

“That’s when we contacted … Rio/Maxam and said ‘We’d like to visit withyou, come see us. We now have somethingwe can show you.’”

In July 2012, MEDCO hosted adinner to introduce a delegation ofRio Ammunition, Maxam and Expalofficials to “key community leaders”including members of the MarshallCity Commission and Harrison CountyCommissioners Court and officials atTexas State Technical College.

One of the things that Maisel said thecompany found “very surprising” washow accepting the community was of

arms manufacturing.

“I told them that it was a part of ourculture, but they were surprised by thelevel (of acceptance) and that’s what theywere looking for,” she said. “They wereworried that people wouldn’t want themaround their area because of what they do.”

But another advantage of Marshall as thesite for a plant that manufactures shotgunshells, is that the Marshall Business Parkis located away from residential areas,but with access to all the things that anindustry needs – water, power, sewer andnatural gas.

“After the dinner, we really startedworking on the site and looking at what itwould take,” Maisel said. “In November,2012 they sent another team … basicallyengineers and site visits regarding theexisting Expal operations.

“And then they were looking at futuregrowth…what they would like to do with

Jerry Pye

OFFICIALS POSE APRIL 2, 2014 AT THE GROUNDBREAKING CEREMONY FORINTERNATIONAL SHOTGUN SHELL MANUFACTURER RIO AMMUNITION AT THEMARSHALL BUSINESS PARK.

ON THE ROAD TO RIOBY KARLA DELUCA

DONNA MAISEL

See ROAD, page 11

TIMELINEFOR MARSHALL’S RIO AMMUNITION MANUFACTURING FACILITY

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THE CITY OF MARSHALL

CITY OF MARSHALL COMMISSIONERS

FROM GROUNDBREAKING TO COMPLETION

401 sOUTH aLaMO • MaRsHaLL, TX903-935-4400

GARRETT BOERSMACOMMISSIONER

LADARIUS CARTERCOMMISSIONER

MICHAEL MITCHELLCOMMISSIONER

LISA AGNORCITY MANAGER

ED SMITHCOMMISSIONER

ERIC NEALMAYOR

GLORIA MOONMAYOR PRO-TEM

VERNIA CALHOUNCOMMISSIONER

THe CiTy Of MaRsHaLLiH proud to hEvB plECBd E pErt Gn thB locEtGon oA RGo ammunGtGonGn MErHhEll. ThGH AurthBr dGvBrHGfiBH thB BconomC oA MErHhEll

and provides good paying jobs for Marshall citizens.

Groundbreaking - April 2014

Inside View Of Plant During Construction The Completed Plant - 2015

Steel Framing Going Up

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RIO AMMUNITION | COMMEMORATIVE EDITION

HISTORY OF MAXAM, RIO & MARSHALLBY KARLA DELUCA

The official opening of the RioAmmunition manufacturing facility inMarshall marks the beginning of a newchapter in the long and interesting historyof it’s parent company, Maxam.

While Alfred Nobel is known more forthe establishment of the Nobel Prize thanfor his invention – dynamite – he’s probablylesser known as the founder of Maxam.

Originally known as Spanish DynamitePowder Company, Nobel founded thecompany in 1872 and since that time, ithas been, as the company’s motto states,“Shaping the world you live in.” Just asNobel’s invention paved the way for theWestern expansion in the United States,blasting through mountains to createroads, tunnels and railroads, Maxam’scivil explosives and initiation systemsused in mining and oil and gas productioncontinues to shape our world.

For example: Explosive products used inmining – for copper and gold for instance– is used in cell phone batteries andmicrochips. Explosives, through “expansiveenergy” are also used in fracturing or“fracking” as it’s referred to in the oil andgas industry, to release oil and gas fromrock, which makes Nobel’s invention andthe company he founded, an important partof everyday lives.

But while Maxam is a global leader in theexplosive ordnance business, it also suppliescivil, military and sporting markets withstate-of-the-art munitions, according to thecompany website.

Rio Ammunition is part of MaxamOutdoors, which manufactures ammunition

for sport shooting – hunting and skeet, withmanufacturing plants in Spain, England andnow, Marshall.

“The construction of our newheadquarters in Texas represents a giantleap forward for Maxam and Rio and animportant turning point in the history ofboth companies,” said Iñigo Rodríguez,managing director for Rio Ammunition.

“Few places embody American valueslike Texas and for this reason Marshall waschosen as our manufacturing base in theUnited States.”

Rodríguez has been managingdirector of Rio Ammunition since 2004,overseeing the company’s expansion inthe U.S., helping Rio become a “majorplayer” in an intensely competitivemarket according to an article in thecompany magazine, Shaping.

Rodríguez said in the article that whenRio entered the market, they went from“moving a few truckloads” of cartridges in2002 to competing in the top league.

The start of production of shotgun shellsand components in Rio’s high-tech plantin Marshall, which incorporates a newmanufacturing concept that will allow thecompany to supply customers “much morequickly and efficiently,” he noted.

The Marshall facility “represents adefinitive step forward for Rio’s history inAmerica,” Rodríguez said in the article, asthe state-of-the art plant, integrates all ofRio’s “key processes” allowing the companyto respond quickly to consumer demands.

One of the company’s most recentachievements, he noted, was the launch of

new products “specifically engineered tomatch the preferences of American huntersand shooters.”

Rodríguez said he anticipates that thedemand for Rio products in the U.S.market will not only remain strong,but will increase. While the plant iscurrently employing 45 people, DonnaMaisel, executive director of the MarshallEconomic Development Corp., said thatwhen the plant reaches full production, it isanticipated that the workforce will increaseto 95.

While the official opening of theplant is the culmination of more thanfive years’ of negotiations, planningand construction, it isn’t the end of thestory, it’s just another beginning for Rio,Maxam and Marshall.

“From here we will provide top qualitygame and target loads to millions ofAmerican shooters,” Rodríguez said.“Everyone will be able to see the Texasemblem on the packaging and know theproducts were manufactured locally inMarshall, Texas.”

Karla DeLuca

RIO AMMUNITION SHOTGUN SHELLS

Jerry Pye

A SIGNWITH THE IMAGE OF THE PLANNED BUILDINGSTRUCTURE IS PICTURED APRIL 2, 2014 AT THEGROUNDBREAKING CEREMONY FOR INTERNATIONALSHOTGUN SHELL MANUFACTURER RIO AMMUNITIONAT THE MARSHALL BUSINESS PARK.

Jerry Pye

OFFICIALS TURN THE GROUND APRIL 2, 2014 AT THE GROUNDBREAKING CEREMONY FOR INTERNATIONAL SHOTGUNSHELL MANUFACTURER RIO AMMUNITION AT THE MARSHALL BUSINESS PARK.

Jerry Pye

FERNANDO CUBELLS, THEN-GENERAL MANAGEROF MAXAM BUSINESS UNITS, SPEAKS AT THEGROUNDBREAKING CEREMONY FOR THE RIOAMMUNITION PLANT APRIL 2, 2014 AT THE MARSHALLBUSINESS PARK.

ALFRED NOBEL

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RIO AMMUNITION | COMMEMORATIVE EDITION

FATHER-DAUGHTER MEDCO LEADERSBIG PUSH BEHIND RIOBY ROBIN Y. RICHARDSON | RYRICHARDSON@MARSHALLNEWSMESSENGER.COM

It’s been years in the making, and on June25, Rio Ammunition will officially be ableto call Marshall home as the internationalshotgun shell manufacturing plant opensits U.S. headquarters here at MarshallBusiness Park.

The feat is partly due to the efforts offather-daughter duo and current and formerMEDCO board chairs, Rusty Howell andLeslie Chambers, who played a key role inmaking this dream become reality.

“We started talking to themabout six yearsago, and then we started really negotiatingwith them and trying to get them to comeabout three years ago and then finalizedit about two years ago. Then they startedreally working on the site and everythingabout a year ago,” Chambers said of MarshallEconomic Development Corporation’s effortsto get the plant to locate here.

She was the chair of the MEDCO board,at the time, and as chair, she began a“courtship” with executives from Rio thatproved to be fruitful.

“It’s a really, really great thing forMarshall, and for East Texas,” Chamberssaid. “They were a joy to work with —really, really great.”

Her courtship with the company beganyears ago when executives came to Marshallto check on its parent company, Maxam, amultinational company known for civilexplosives and initiation systems foundedin 1872 by Alfred Nobel.

“They were winding down. Steve Darthad worked for them initially, across theroad (as president of Chemring’s Marshallbranch and the original designer of thefacility), and he was trying to bring somepeople in who maybe could share some of

the property, and so he brought them overto meet us and we talked to them and triedto work out something where we could dosome property sharing with them and keepthat place open when it was Chemring,”Chambers said. However, the plan failedand the company, Chemring MilitaryProducts, ended up shutting down itsMarshall location and leaving.

Chambers said although it left, sheand Donna Maisel, MEDCO’s executivedirector, made sure the enterprise didn’tforget about Marshall.

“Donna and I just kept in touch withthem and kept talking to them and kepttalking to them and saying, ‘Don’t forgetabout us; don’t forget that we’re here,’”Chambers said. “They ended up going toTennessee and opening just their loadingplant there, the packing plant.”

Chambers said when the companydecided that they wanted to expand, theythought about Texas.

“They were having employee problemsin Tennessee; they just couldn’t findqualified employees,” she said. “They hadreal good luck in Texas in the past whenthey had a port connection here withthe employees, and they knew that theywanted to come to Texas, so we just keptin touch with them and kept courtingthem and just kept mentioning Marshallto them and kept in touch with SteveDart, who (also) had the other arm oftheir business with Expal,” she said notingExpal, a subsidiary of Maxam, is a Spanishdefense company, which deals primarily inDepartment of Defense contracts for itemssuch as weapon systems, ammunition andpyrotechnics.

“They decided they wanted to come toMarshall and it worked out really goodfor us because we had that propertyback there and it worked real well forthem,” Chambers said of the Rio/Maxamenterprise. “They were wonderful peopleto work with.

“It was a long involved process, with thembeing Europeans, and a lot of negotiationbecause we had a lot of things that took alot of detail explaining, because there wereproblems with different legal things thatwere hard to explain, with them being fromoverseas,” she said. “That took a long time,but finally got all worked out, so I’m reallyhappy to see that they are going to openup, and there’s a lot of opportunity therefor them to bring other branches of theirbusiness to Marshall; so, I’m just reallythrilled for them to finally be opening.”

While Chambers led the courtshipwith the executives, Howell, a localbusinessman and sitting MEDCO boardpresident, said he served in a moreadvisory, consulting role.

Donna Maisel

THE RIO PLANT AT MARSHALL BUSINESS PARK IS PICTUREDUNDER CONSTRUCTION.

Donna Maisel

CONSTRUCTION EMPLOYEES WORK ON RIO AT THE MARSHALLBUSINESS PARK.

Jerry Pye

TEXAS LOGO ON TWO SHOTGUN SHELLSARE PICTURED APRIL 2, 2014 AT THEGROUNDBREAKING CEREMONY FOR SHOTGUNSHELL MANUFACTURER RIO AMMUNITION ATTHE MARSHALL BUSINESS PARK.

Donna Maisel

CONSTRUCTION EMPLOYEES WORK ON RIO AT THE MARSHALL BUSINESS PARK.

Jerry Pye

CURRENT MEDCO BOARD CHAIR RUSTY HOWELL, STATE REPRESENTATIVE CHRISPADDIE AND TEXAS SPEAKER OF THE HOUSE JOE STRAUSS TALK AFTER THEGROUNDBREAKING CEREMONY FOR THE RIO AMMUNITION PLANT APRIL 2, 2014 AT THEMARSHALL BUSINESS PARK.

RUSTY HOWELL

See PUSH, page 7

LESLIE CHAMBERS

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RIO AMMUNITION | COMMEMORATIVE EDITION

OFFERING ADVICEHowell, who wasn’t on the board during

the genesis of the project, said he met manyof the key people in the company whentheir old subsidiary business was at thebusiness park.

“They were all sort of combined in thelatter days of that,” he said of officials.“They were running Maxam and thosecompanies out there.

“That’s how I really got mainlyacquainted with those groups, and workedwith them and you get a good relationshipgoing and then good things happen,”Howell said, sharing how they understoodthat he thought it was a good idea for themto come here.

Howell said he’s thrilled about thecompany’s move to Marshall, and thinksit’ll be good for the community.

“We always try to get the headquartershere, if possible,” he said. “That way, theycan associate with the (MEDCO) board,and become better acquainted.

“It’s a huge step forward and it’s going tobe really good for theMarshall community,”Howell said.

He said it’s especially good to have acompany of Rio’s magnitudemakeMarshallits U.S. headquarters.

“They are what I call a five-starcorporation; that’s the top,” Howell said.“They’re in several businesses around theworld, and most everything that they arein, in every business, they are number one.

“That speaks highly for the uppermanagement and the personnel, and howthey do their thing,” he said.

OPPORTUNITY FOR GROWTHHowell said he’s excited about the grand

opening, and thinks it’s going to be a bigday for Marshall.

“Bringing in businesses that are five-starcorporations, the top of the (pack), attractothers of top quality,” he said. “That’s whatyou’re looking for.”

Howell, who has served on the MEDCOboard off and on, said one of the reasons hedecided to come back on the board was tohelp try to build a good job base for the cityso that Marshall could have a super, qualitylabor workforce to offer.

“We have the tools for that throughTSTC and the colleges here and now we’rebeing able to penetrate the high schools,and that’s what it’s all about – startingyoung,” Howell said. “They get work ethicswhen they are young, like sophomores andjuniors in high school. And that’s whatwe wanted.

“That’s what we’re about and that’s whatwe ought to be about is doing this stuff forthe benefit of the people to see,” he said.“And once we get that labor force built,then corporations are attracted to that andMarshall will grow.”

Chambers said she’s happy about thejob creation that Rio is bringing into thecommunity.

“It’s a lot of jobs; it’s the only shotgunshell operation in the state of Texas, so it’sa huge thing for Marshall to have that,”she said.

Chambers said there are only threeshotgun shell businesses in the UnitedStates, and Rio is the only technicallyadvanced one that has the advancedtechnology and equipment to manufacturetheir products, which is mainly forrecreational and regulated use.

“They don’t do hand packing; theyhave real advanced machinery to dotheir packing,” she said. “They are veryprotective and very secretive about theway their business works and they arevery much more able to produce at a veryfaster rate.”

Chambers said the shotgun shell businessis moving quickly as far as production.

“Texas is the fastest growing area of theUnited States as far as shotgun shell salesand they have not been able to keep up.It’s just growing leaps and bounds; so, thefact that they are so technologically aboveeverybody else, has put their sales throughthe roof,” she said.

“They needed to be able to manufacturein the U.S,” Chambers said. “Texas was theperfect place for them because the sales inTexas are growing so fast, and we expectto see Rio move ahead of the others – very,very fast – because their sales are growingso fast.”

Jerry Pye

SHOTGUN SHELLS ARE PICTURED APRIL 2, 2014 AT THE GROUNDBREAKING CEREMONY FOR INTERNATIONAL SHOTGUN SHELLMANUFACTURER RIO AMMUNITION AT THE MARSHALL BUSINESS PARK.

PUSH, continued from page 6

HARRISON COUNTY COMMISSIONER’S COURT

NOT PRINTED NOR PUBLISHED AT PUBLIC EXPENSE. PAID FOR BY HUGH TAYLOR, WILLIAM D. HATFIELD, JAMES GREER, JAY EBARB, ZEPHANIAH TIMMINS

PRECINCT 1WILLIAM D. HATFIELD

PRECINCT 3JAMES GREER

PRECINCT 4JAY EBARB

PRECINCT 2ZEPHANIAH TIMMINS

HUGH TAYLORHARRISON

COUNTY JUDGE

Texas for economic development.Proud to work with Medco and Marshall

Welcome toHarrison County

Shells to be produced locallyhere at the plant.

Located in the Marshallbusiness park.

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RIO AMMUNITION | COMMEMORATIVE EDITION

CITY WORKS WITH OTHER AGENCIESTO ENTICE INTERNATIONAL COMPANYBY CALEB BRABHAM | CBRABHAM@MARSHALLNEWSMESSENGER.COM

Former Marshal Mayor Ed Smith isquick to pass the credit on to the MarshallEconomic Development Corporation forattracting internationally based company,Rio Ammunitions Inc. to Marshall,but said the city played an active role inproving the worth of Marshall in the eyesof the organization.

“Rio was very much interested in Texasfrom the standpoint that a significantpercentage of their shotgun shell businessthat they had here in the United States wasthrough sales here in the Texas market,”Smith said. “Being located next to theExpal USA Inc. operations and being inTexas made Marshall a favorable possiblesite for Rio to locate to.”

Smith said MEDCO had beeninstrumental in bringing subsidiariesof Rio’s parent company, Maxam, suchas aerospace company Expal USA Inc.,to Marshall. Knowing that Rio saw theUnited States, particularly in Tennesseeand Texas, as a potential growth market,MEDCO and the city of Marshall hopedRio Ammunitions could be persuaded tojoin the other subsidiaries.

“The fact they see the United Statesand Texas as areas of potential growth,it means there will be jobs coming tothe United States as a result of theiractivities here,” Smith said. “We have anopportunity, by virtue of having Expaland Rio located here, to capture a big partof that future growth. That’s what wewanted to communicate to them. We havethe right business climate, not only herein Marshall, but in Texas. We have all theroom for them to grow right here.”

Smith said once Rio was approached, anear five-year period of negotiations beganbefore the deal was finalized in 2013.

“It’s complicated to bring an internationalcompany into this country because you’renot only dealing with various applicablelaws that need to be navigated, but alsothe tax consequences for both companies,”Smith said. “All of those factors enter intoplay and have to be worked through in thenegotiating process.”

Smith said his own primary involvementhas been communicating with theexecutives at Maxam.

“I was called in to help explain andconvince them of the benefits of choosing

Marshall as a climate for their business.I feel like we have a good workforce herethat would be conducive to their type ofbusiness,” Smith said. “We have skilledlabor here that would be adaptable totraining for this kind of business. Westressed to them the fact that the jobs theywould create would be important to ourcommunity. We wanted them here.”

Rio Ammunition would employ at least60 employees from the community, butSmith said he expects that number to bejust the beginning with the organization

potentially offering anywhere from 80 to100 jobs.

“When they get here there will besatellite businesses that will be ancillaryto their manufacturing operations here,”Smith said. “We think there will be somestart-up satellite activity that will createadditional jobs.”

Smith said in speaking with executiveshe pushed another of Marshall’s assets.

“Additionally, Rio would have the ability

Donna Maisel

CONSTRUCTION EMPLOYEES POUR CONCRETE FOR RIO AT THE MARSHALL BUSINESS PARK.

Donna Maisel

CONSTRUCTION EMPLOYEES WORK ON RIO AT THE MARSHALL BUSINESS PARK.

Donna Maisel

CONSTRUCTION OF A NEW PLANT FOR A SPANISH-OWNEDAMMUNITIONMANUFACTURER, RIO, IN MARSHALLMOVED CLOSER TO COMPLETION IN NOVEMBER 2014 ASHELICOPTER-BORNE HVAC EQUIPMENTWAS SET IN PLACE.

Caleb Brabham

FORMER MAYOR ED SMITH STANDS IN FRONT OF RIO AMMUNITION INC., JUNE 4.

See CITY, page 9

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RIO AMMUNITION | COMMEMORATIVE EDITION

to work with TSTC to help train theiremployees in the new operations here sothey can make a very smooth transition tothis country,” Smith said. “I know they doa lot of their training in-house at Spain, butwe wanted to let them know that we hadthat availability here and that TSTC couldassist with on the job training for employeesand new hires.”

Smith said that ultimately, the clincherfor attracting Rio Ammunitions Inc. wasdeciding on a financing incentive packetthat would please all parties involved.

“The biggest thing was the (financing)incentive package MEDCO put togetherfor them. They wanted to know that if theywent through all of the effort to negotiatethat the city would approve it,” Smith said.“Ultimately, our city commission has toapprove any incentives MEDCO has to givethem; I was there to assure them that thecity of Marshall would be supportive of anyreasonable final incentive package that wasbrought to the commission for approval.

“It’s a pretty complicated agreement but

the simple gist of it is a 10-year lease withan option to purchase the property,” Smithsaid. “The incentive is that MEDCO wouldbuild the facility and contribute a portionof the cost of constructing it as incentive.”

Smith likens the process of bringing Rioto Marshall as navigating tricky waters,a task he feels the city, MEDCO and Riofound success in completing.

“We made it through those stormydays and here we are now with the grandopening looking at us,” Smith said. “Ithink the biggest thing was that MEDCOand the city of Marshall, never lost sight ofbringing Rio here. We stayed focused onbringing them here because at the end ofthe day we knew it would be worth it toour community to have them here. We’reexcited they’re here, we’re happy they’rehere and I think they are too. They haveunlimited potential and opportunity forgrowth here in Marshall to meet theirmarket needs across the country from righthere in our little community.”

Donna Maisel

THE CONSTRUCTION OF RIO AT THE MARSHALL BUSINESS PARK IS PICTURED ON AUG. 12, 2014.

Karla DeLuca

CITY, continued from page 8

The Wieland-Davco Corporation is an ISO 9001 Certified Construction Management firm with five offices across the US,

including Marshall, TX. For more information, please call us at 1-800-633-5488 or visit us online at www.Wieland-Davco.com.

As the Construction Manager for the Rio Ammunition project,The Wieland-Davco Corporation would like to recognize the hardwork, dedication and commitment of al l of our partners. We would like tothank our client (Rio Ammunition); our building owner (Marshall EconomicDevelopment Corporation); and, a special word of thanks to the many localarea subcontractors and mater ial suppliers who made it al l happen.

T H E W I E L A N D - D A V C O C O R P O R A T I O N

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RIO AMMUNITION | COMMEMORATIVE EDITION

Donna Maisel

RIO IS SEEN FROM THE SKY IN FEBRUARY 2015 AT THE MARSHALL BUSINESS PARK.

Jerry Pye

SHOTGUN SHELL BOXES ARE PICTURED APRIL 2, 2014 AT THE GROUNDBREAKINGCEREMONY FOR INTERNATIONAL SHOTGUN SHELL MANUFACTURER RIO AMMUNITIONAT THE MARSHALL BUSINESS PARK.

COLLABORATION BETWEEN CITY, COUNTYRESOURCES HELPS MAKE RIO A SUCCESSBY RYAN WAGONER | RWAGONER@MARSHALLNEWSMESSENGER.COM

The Rio Ammunition manufacturingfacility’s inaugural ceremony is here, butwithout the strong working relationshipsbetween the Marshall EconomicDevelopment Corporation, the city and thecounty, getting the project off the groundcould have beenmuchmore time consuming.

“In the field of economic development andattraction for communities, it’s always veryimportant that the community leadershipand management come together to have aproactive stance on recruiting business andindustry,” said Donna Maisel, MEDCO’sexecutive director.

Rio Ammunition, a subsidiary of theSpanish-headquartered firm, Maxam,announced the move of its headquarters toMarshall in 2013. What followed was yearsof negotiations and bi-continental meetingsbetween the company and MEDCO towork out details of construction for the105,000-square foot facility in April 2014.The site is estimated to bring more than 60jobs to the area.

Part of what helped in negotiationsbetween Rio and MEDCO was the supportand diligence of county and city officials toprovide incentives and what the companyneeded to complete its vision for the project,Maisel said. MEDCO served as the point

of contact between Rio and communityresources to provide a smooth experiencefor the company’s transition.

“It eliminates a lot of effort on company,”Maisel said. “The company knowing theyhave that support of the city and countyto help them understand the regulatory

process, understand the infrastructure, andwhat will and won’t work in a communitylets the company know the community isforward thinking, pro-business and thatthey want them.”

Through the city, MEDCO was able tooffer on-site infrastructure development

incentives, as there was alreadya road leading out to the site aswell as water and sewer systems.MEDCO was also able to bringa gas line out to the site, whichMaisel said will benefit not justRio, but the Marshall BusinessPark as well.

Maisel said she was also ableto show the large amount ofworkforce training optionsavailable in the area to thecompany through partnershipswith local colleges, whichprovided another non-construction related incentive forthe company.

“We have Texas State TechnicalCollege, East Texas BaptistUniversity, Wiley College andPanola,” Maisel said. “That’s oneof the best kept secrets in ourcommunity is that we have fourareas of higher education andworkforce training available here.

That’s one thing that’s very important tobusiness and industry.”

The city worked closely with theMEDCO board on financing requirementsfor the project, and was able to stay wellinformed on the construction timelinethanks to MEDCO, City Manager LisaAgnor said.

“This was a really great opportunity towork with MEDCO to bring this facilityto Marshall,” Agnor said. “We’re verysupportive of the project and thrilled tohave Rio Ammunition here.”

County support came in the form of roadmanagement and future site development,as well as fire marshal inspections for thesite, Maisel said. On projects outside thecity, the county is typically responsible forbasic infrastructure needs and planningand zoning regulation needs, similar tothe city.

Harrison County Judge Hugh Taylorsaid he was happy that the county was ableto play a small role in the Rio project.

“We were able to show public supporton every front,” Taylor said. “We’ve beenworking hard with MEDCO and Marshall

to provide all necessary information forMaxam and Rio to develop a business plan.Harrison County remains an attractivelocation for businesses with our vastresources, educational assets and a tax ratein the lowest 10 percent of cities in the stateof Texas.”

Even with important incentives andservices made available to Rio, one ofthe most important factors that bringbusinesses out to Marshall is that thecommunity leaders are on the samepage when it comes to economic growth,Maisel said.

“We’ve got forward thinking leadershipin place at all the different entities,”Maisel said. “We are blessed with that andeveryone is so supportive of each other andthat our community wants to grow andpresents that to the business and industryvery well.”

HUGH TAYLOR

LISA AGNOR

“IN THE FIELD OF ECONOMICDEVELOPMENT ANDATTRACTION FOR COMMUNITIES,IT’S ALWAYS VERY IMPORTANTTHAT THE COMMUNITYLEADERSHIP AND MANAGEMENTCOME TOGETHER TO HAVEA PROACTIVE STANCE ONRECRUITING BUSINESS AND

INDUSTRY.” - DONNA MAISEL

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RIO AMMUNITION | COMMEMORATIVE EDITION

Caleb Brabham

THE FRONT OF THE COMPLETED RIO BUILDING IS PICTURED JUNE 4 AT THE MARSHALL BUSINESS PARK.

ROAD, continued from page 2

the shotgun shell manufacturing facility.They wanted a full manufacturing facilityfrom start to finish, and they wanted tomake it state of the art.”

A few months later, Rio Ammunition, adivision of Maxam Outdoors, sent a letterof intent to MEDCO in consideration ofMarshall as the location of its U.S. shotgunshell manufacturing facility.

In June 2013, Marshall sent a delegationto Spain to continue the dialogue in pursuitof the Rio Ammunition facility. Maisel,then-Marshall Mayor Ed Smith and arepresentative of Gov. Rick Perry’s office,Keith Graf, director of Aerospace, Aviationand Defense and the Texas MilitaryPreparedness Commission, traveled toMaxam headquarters in Madrid (Smithat his own expense) to tour some of theMaxam manufacturing plants.

“Location-wise, Marshall wasn’t necessarilythe best location for them to be, but as far asthe other things about what we had to offerthem, the way we were willing to structure adeal for them and the community acceptance,I think they were overwhelmed at how muchpeople wanted them to be here.

“We decided if they were giving us aletter of intent, then we would take thenext step … and this is an internationalcompany over 6,000 employees, so we puttogether a team to go to Spain.”

Negotiations with international companies,Maisel said, “are very different thannegotiationswithU.S. companies.” It requiresmuch more than “just a letter sayingyou’re interested.”

The trip to Spain made a huge differencein the negotiations, she said. “It was thedifference between night and day. It reallyturned the corner in the project for us.”

“We were thankful to have the expertiseof Keith Graf, because he could ask morein- depth questions about the process.

“We talked about different thingswe could do for them and our level ofcommitment from community andMEDCO and the state of Texas,” she said.“They saw we were really invested and wereimpressed that we had taken them up ontheir invitation to come see their operation.”

The availability of training at TSTC,and for their “ability to create trainingprograms specifically geared toward specialniche industries” was another pivotal factorin the decision to locate in Marshall, aswell, Maisel said.

“Workforce training and TSTC is vital toour community, because that is the numberone thing that we get asked about by newprospects. They want to know “What doyou have to help train these people?’”

After the trip, MEDCO provided the firstgeneral letter of intent to provide assistanceand between July and November 2013MEDCO held “many meetings” to obtainproposals for the construction of a newfacility, Maisel said.

MEDCO also took the step of sellingthe timber off two sites, using therevenue to clear the acreage, to give thecompany a better idea of what the sitelooked like, which was another step inthe right direction.

“They liked it because of the terrain. Itfit in with the construction of the buildingbecause they knew that the very back end

of the building would be two

levels and there’s a natural slope

to the terrain that they can make

use of. Otherwise, they’d have to

excavate and that would have

been an extra cost.”

In July 2013, the city

commission approved the

proposal for incentives to Rio,

and negotiations were finalized

in January 2014.

“We signed all the agreements,

which were the incentive

agreement and the leases and

the corporate guarantee from

the company,” Maisel said. “And

then we had a private celebration

dinner with the MEDCO board

and the representatives here to

commemorate the signing.”

In the two weeks following,

the construction contract was

signed with Wieland-Davco,

of Shreveport, Louisiana with a

local office in Marshall, which

was one of the requirements of

the negotiations.

The groundbreaking on the

$9.6 million facility was held in

April 2014.

They were “in the building”

in March, Maisel said, with

45 employees and limited

production while processes

are being streamlined. They

anticipate employing 60 people,

increasing to 90 when they reach

full production, she said.

The Rio Ammunition plant

is one of the largest investments

MEDCO has made in a project,

other than TSTC, Maisel said.

The 10,500 square foot facility

will be one of the largest in

the business park, and will

eventually occupy 11 acres.

The official opening on June

25 is not the final step in the

process, Maisel pointed out.

“We don’t just recruit new

business and industry, we help

them throughout the life of the

company,” she said. “We’re their

partners and their advocate.”

“WORKFORCE TRAINING AND TSTC ISVITAL TO OUR COMMUNITY, BECAUSETHAT IS THE NUMBER ONE THINGTHAT WE GET ASKED ABOUT BY NEWPROSPECTS. THEY WANT TO KNOW‘WHAT DO YOU HAVE TO HELP TRAINTHESE PEOPLE?’” - DONNA MAISEL

CongratulationstoRio Ammunition ontheirNEW Expansion!It was an honor to be a part

of the Wieland-DavcoConstruction Team.

STALEY STEEL INCENGINEERED/FABRICATED/ERECTED

PILOT POINT, TEXAS • 940.686.6000 • www.STALEYSTEEL.com

Welcome toMarshall and

Harrison County.

Good luck to you forthe future!

It was a pleasureworking with Rio!

GARRETT & ASSOCIATESGENERAL CONTRACTORSCOMMERCIAL CONSTRUCTION

Whitehouse, Texas903.839.7909 • www.garrettgc.com

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DONNA MAISEL, EXECUTIVE DIRECTOR2660 EAST END BLVD. S. MARSHALL, TX 75672 903-934-8035

GROUND BREAKINGAPRIL 2014

TEXAS SHOTGUN SHELLS TOBE PRODUCED IN MARSHALL

THE RIO AMMUNITIONPLANT WILL EMPLOY UPTO 90 EMPLOYEES AT FULLOPERATION.

is proud to have taken the lead role on the locationof Rio Ammunition in Marshall. This has been a five year working

relationship that will benefit the Harrison County economy and help laythe foundation for further job growth in Marshall.

MEDCO