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CASE STUDIES

Covidien  ( Formerly Tyco Healthcare)

"Given that people are the most valued resource of any business, the workforce of Northeast Texas has set a high standard in this regard. As our organization has initiated such philosophies as Lean Manufacturing and Six Sigma, our employees have taken a genuine interest and active participation in these and other progressive business practices. The strong work ethic of this community is a proven catalyst for success."
Nelson Lateer, Former Plant Manager

Product

 

Disposable Medical Devices

Located to Commerce

 

1975

Employees

 

416 Employees, Including 50 New as of 2002

Expansion Investment

 

$5.8 Million in building renovations & Equipment

Plant Manager

 

Dwayne Pace

  • Background Information The Brunswick Corporation located to Commerce in 1975 to manufacture latex gloves. The plant was converted in 1980 to manufacture syringes and other disposable medical devices. The Commerce plant grew to its current size of 300,000 sq. ft. and added product lines even though there were mergers and acquisitions within the larger corporation. In 2001, Tyco Healthcare/The Kendall Company completed its third expansion within four years. Commerce partnered with local management to assure this plant continues to expand and succeed.

  • Obstacles/Challenges to Success As consolidations occurred, new product lines were added at the Commerce plant. This required building expansions and renovations, new equipment, new employees hired with little or no experience, and current employees needing retraining and skills development. Also, increased truck and employee traffic created congestion in the parking areas & plant entrance.

  • Assistance Provided The CEDC saw the expansions as an opportunity to work with the largest industrial employer in the city, encourage further expansion and solidify retention of an excellent corporate citizen. Commerce provided an aggressive incentive package for the last expansion, but also worked with company officials on previous expansions by helping obtain significant state training grants.

  • Incentives
    • 0% interest forgivable loan (becomes a grant) for public infrastructure improvements & construction of a new truck parking and staging area
    • Tax Abatement - 10 year graduated from city, county & hospital district for new capital investment
    • Texas Capital Fund Infrastructure Grant to widen & improve an adjacent city street to reroute truck traffic and improve safety for employees and motorists
    • Enterprise Zone Project
    • Smart Jobs Training Funds - State of Texas; a competitive award
    • Skills Development Training Funds - State of Texas in partnership with Paris Junior college; a competitive award

Tyco Healthcare/The Kendall Company has a long & successful manufacturing presence in Commerce. These public/private partnerships create jobs and stability in the workforce. Commerce knows the importance of commitment and continues to work with our industries over the long term, not just in the initial site location decision. Use the Contact Form or call 903.886.1121 to get in touch with Jennette Burnett, Executive Director, and become a member of a community that fosters long term relationships.