Primetals leaving Worcester for Sutton
Courtesy | Primetals
A concept building rendering of Primetals' Sutton facility.
More than a month after Sutton voters approved a 15-year tax increment financing agreement for a new facility, Worcester metal manufacturer Primetals made their move to the town official.
The facility at 85 Gilmore Drive off of Route 146 will house the company’s steel mill equipment manufacturing; research and development; engineering and sales operations.
The company currently operates two facilities in Worcester: one at 40 Crescent St. and another at 50 Prescott St. in Gateway Park. Both facilities will be close and consolidate under one roof in Sutton.
Construction at the vacant 38-acre site is expected to begin in June and be completed by summer 2019.
According to property records, the owner is listed as Sutton Outlook Ventures LLC, but records also show the town foreclosed on the property last month due to unpaid taxes.
“After two years of research, analysis and deliberation, we have come to realize that while our facility at Crescent Street has served us well for the last 100 years, it will not carry us for the next 100,” said Michael Eldredge, vice president of the company’s mini mills and long rolling division.
The new 183,000-square-foot facility represents the first opportunities for employees to work together at one location, Primetals said in a press release announcing the new facility.
About 275 employees will work at the facility, Primetals said.
The company did not disclose its financial investment, but Eldredge told the Sutton Board of Selectmen in January the facility would represent a $28-million investment.
The TIF includes a 67-percent real estate tax reduction to see a total of $826,755 in revenue to the town over the 15-year agreement, according to Town Administrator James Smith.
The company considered nearly 100 locations, including many in Worcester, Primetals said.
In a statement, Primetals’ President and CEO Yoshiharu Ikeda said all stakeholders recognized the strength of Primetals' manufacturing operations in Worcester when it was formed in 2015 as a joint venture of Siemens and Mitsubishi Heavy Industries.
The company is also moving its MORGOIL oil film bearing product line currently housed in Worcester to an existing facility in Ohio.
The Crescent Street location was built in 1860, according to property records. According to Primetals, the location was where MORGOIL products were founded. The company was acquired by Siemens in 2008.
“This investment reflects our commitment to provide our talented people with a modern facility and the resources they need to continue exceeding customer expectations,” Ikeda said. “With these changes, we are truly investing for the future and establishing a foundation for continued success for the next 100 years.”
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