by Allen Essex, 1-13-09

Harlingen - In the midst of economic gloom and doom about troubled automakers, a Michigan company that makes custom precision springs for the auto industry has announced plans to opne a factory here.

     Spring Dynamics of Almont, Mich. has chosen Harlingen for its second manufacturing plant, to serve the maquiladora industries in Mexico.  Harlingen Economic Development Corp.'s William A. Martin said in a news release.
The plant will employ 35 people by the end of 2013 at a 31,411 square-foot facility to be developed at 710 N. Commerce St., Martin said.

     "They are opening a facility in a building that used to be a Coors (beer) distributorship," Mayor Chris Boswell said.
John Fritz, senior vice president of Spring Dynamics, said Monday that it will be more efficient for his company to do part of its manufacturing in Harlingen.

     "We have a large customer base that is operating in Reynosa, Matamoros and Monterrey, Mexico," he said.  "They transferred a lot of facilities out of the Midwest.  It's actually to our enefit to open a plant down there."

     Most of the customers his company has in Northern Mexico are from the United States, Fritz said.  Toyota is one exception.
In the Midwest, many of Spring Dynamics' customers are in the agricultural equipment business, such as John Deere, he said.

     Through an agreement with the EDC, Spring Dynamics is pledging to provide jobs on a timetable and will be obligated to allow EDC officials to monitor its performance, Harlingen city documents state.

     Spring Dynamics will be paid $3,500 for each full-time job created and filled for at least one full year, up to 35 jobs for the end of the first five-year period, city documents state.

     "It's a real good little company and the (EDC's) investment (in the building) wasn't significant," Mayor Chris Boswell said.
The jobs that Spring Dynamics will provide will benefit the whole Rio Grande Valley, not just Harlingen, the mayor said.

     Overall, Harlingen has had a lower unemployment rate than the other parts of the Valley, such as Brownsville and McAllen, Boswell said.

     "It's good to have this company here, even in the midst of all this (economic) downturn," the mayor said. "(Automakers) not going to stop making cars."

     EDC and city officials have been working on the project for about a year." Martin said of the Spring Dynamics agreement.

     "We are very pleased that a company of the quality of Spring Dynamics has selected Harlingen for its new manufacturing operations," said Armando Elizarde, president of the Harlingen EDC.  "Their decision to locate here validates Harlingen as a prime location for new manufacturing facilities," he said.

     Construction to remodel the new facility will begin in January, the EDC said.  "Spring Dynamics hopes to begin operations within 90 days," he said.