Sioux Chief Manufacturing, a plumbing supply manufacturer based in Peculiar, will be moving most of its operations and nearly 500 jobs to a new manufacturing and distribution complex in south Kansas City.
The 596,000-square-foot plant will be at the CenterPoint Intermodal Facility, the industrial park at the former Richards-Gebaur Air Force Base site. It will accommodate manufacturing, distribution and office space.
CEO Joe Ismert said the plant was needed to accommodate Sioux Chief’s growing business and could be ready in about a year. He said the plant itself would cost about $25 million, with the overall project pegged at $40 million.
He estimated that an incentive and financing package put together by Port KC and others would ultimately save the company about one-fourth of that price.
Sioux Chief, a family business started in 1957, has about 440 employees now and expects to have 500 to 550 in two or three years if the economy continues its current growth, Ismert said. The company also has a temporary workforce that’s usually around 50 or 60 people, he said.
Ismert said the company had moved a few times over the years to accommodate expansion, from Kansas City, Kan., to Kansas City, Mo., and then to Grandview and Peculiar. Ismert said the flat, 72-acre CenterPoint site was attractive because it had space for even more expansion in the future, if needed, without having to move again.
Sioux Chief makes rough plumbing supplies, the workhorse pipes and other parts “that are behind walls and under the floors, out of sight,” Ismert said. “But you might see some of our drains at a Royals game,” he added, because some of the company’s commercial drainage parts are used at Kauffman Stadium.
Financing for the new plant includes $23.5 million in bonds issued by Port KC — the former Kansas City Port Authority — and funding under the New Markets Tax Credit Program with help from AltCap, a community development financial institution, Enterprise Financial CDE and Central Bank of Kansas City.
“Thanks to this tremendous partnership, nearly 500 jobs will be at the CenterPoint Intermodal Facility, creating additional economic vitality in south Kansas City,” said Michael Collins, president and CEO of Port KC.