A Portuguese manufacturer that will be setting up shop in Effingham County may be making an even bigger splash than anticipated.
EFACEC, which will make electrical transformers at a facility it will build along Highway 21 in the Effingham Industrial Park, has asked for a bond resolution worth $175 million. That means the company’s investment will be capped at $175 million, but it was originally expected to be a $100 million investment.
“You don’t take on $75 million to your bond because you think you might need it,” Effingham Industrial Development Authority Chairman Chap Bennett said.
IDA attorney Marvin Fentress said there is no liability on the part of the authority for the bond and it is heavily self-funded by the company.
In the memorandum of understanding signed by EFACEC, the state and the IDA, the Portuguese company’s original investment in the facility site was $50 million. The original total investment, by the end of 2015, was scheduled to be $100 million.
“Their budget has gone up significantly, especially with engineers,” IDA CEO John Henry said.
The IDA is applying for an EDGE grant through the OneGeorgia Authority. Part of the application is to get letters of support from Bryan and Screven counties and obtain cost estimates. The $2.95 million grant is part of the state’s incentive package for EFACEC and will go toward site work.
“We have to write the grant and oversee the grant,” Henry said.
Said Bennett: “It’s going to be a big task to get it accomplished.”