Gov. Edwards, Alliance Compressors Announce $45 Million Capacity Expansion to Meet Energy-Efficient A/C Demand
Baton Rouge, LA (STL.News) Gov. John Bel Edwards and Alliance Compressors LLC announced that the company is investing $45 million over the next two years to expand its compressor assembly facility in Natchitoches and keep pace with increased global demand for energy efficient air conditioning.
With the capacity expansion, Alliance is creating 78 direct new jobs with an average annual salary of $47,000. The company is also retaining 520 existing jobs. Louisiana Economic Development estimates the project will result in 96 indirect jobs, for a total of 174 new jobs in the region. At the peak of development, the project will result in 55 construction jobs.
“Alliance Compressors has generated economic activity and job growth in Natchitoches for more than 25 years, and I am proud to announce this exciting next chapter,” Gov. Edwards said. “The expansion not only reaffirms the company’s commitment to the region, and to creating jobs for residents of rural Louisiana communities. It also joins the growing number of companies in our state capitalizing on the economic opportunities created by the energy transition.”
The expansion will allow Alliance, a joint venture of Emerson, Trane Technologies and Lennox Industries, to add a third assembly line to its 400,000 square-foot facility in Natchitoches. The investment will include the purchase of new machinery and equipment, such as conveyor systems, automated welders, a washer for parts and material handling equipment. The company estimates the reconfiguration of its production flow will result in a 30-percent increase in efficiency and productivity.
“Alliance Compressors has been a proud contributor to the Natchitoches economy since 1998. This $45 million investment will improve and expand our operations in Natchitoches to meet the growing demand for energy efficient scroll compressors by the global air conditioning market,” said Brent Schroeder, chairman of Alliance Compressors LLC. “We look forward to moving ahead with this expansion and creating new job opportunities for area residents.”
Installation of the new equipment will begin in March 2022, with completion slated for March 2023. Hiring for the anticipated jobs will begin February 2023.
“We are proud of the high-quality products that are produced in the city of Natchitoches by Alliance Compressors,” Natchitoches Mayor Ronnie Williams Jr. said. “Not only is this company a key driver of the Natchitoches economy, but they have also proven themselves time and time again to be tremendous community supporters. We certainly appreciate their investment in the people of Natchitoches with this expansion.”
To secure the capacity expansion in Natchitoches, the State of Louisiana offered the company a competitive incentive package that includes the services of LED FastStart – ranked the No. 1 state workforce development program in the nation for the past 12 years. The company will also receive a $1 million performance-based grant to support equipment costs. The company is expected to utilize the state’s Quality Jobs and Industrial Tax Exemption programs.
“It is always exciting to assist companies who have made long-term commitments of jobs and capital investment in North Louisiana by growing their operations here,” said Justyn Dixon, president and CEO of the North Louisiana Economic Partnership. “This investment is a tangible demonstration of Alliance Compressors’ confidence that they will continue to be successful in Natchitoches Parish. Through the life of this project, we built stronger relationships with the company’s leadership and local partners. Great relationships are critical for us to continue to achieve economic development wins such as this.”