GF Central Plastics, a leading manufacturer of metal and polyethylene pipe joining products for the gas and municipal water utility industry, faced a critical need to expand its production capacity in Shawnee, Oklahoma. The company’s existing facilities were operating at near capacity due to a significant increase in demand, driven by an upswing in housing starts and infrastructure development. Constraints on property expansion at its current site and rising construction costs posed significant challenges to realizing this goal. The expansion was vital not only for the company’s growth but also for the economic well-being of the distressed rural community, which relied heavily on the quality jobs provided by the company.
To overcome these challenges, GF Central Plastics secured $45 million in NMTC financing to fund the construction of a new 146,122 sq. ft. metals manufacturing facility in Shawnee. The financing was essential to bridging a $12.1 million gap in the project’s budget caused by rising construction costs and limited access to traditional market-rate debt. The NMTC financing provided the necessary capital to move forward with the project and enabled the company to maintain its commitment to the Shawnee community by staying in its current location, rather than relocating to a more cost-effective site.
The construction of the new manufacturing facility significantly enhanced GF Central Plastics’ production capacity and operational efficiency. The project created 400 full-time equivalent (FTE) jobs, with 96% of these positions accessible to low-income individuals with no more than a high school diploma or equivalent.
Additionally, the project supported the creation of 118 temporary construction jobs, with 69% accessible to low-income persons. All temporary and permanent jobs created were defined as quality jobs, with wages 1.4x above the local living wage. The new facility also allowed the company to relocate its gas meter fabrication department, freeing up space for further expansion in plastics manufacturing at its existing factory.
The successful completion of the project underscored the critical role of NMTC financing in supporting economic development in distressed communities.