Plant plans to add space $3 million expansion second in two years for Evapco Inc.

'A great asset'

Commissioners agree to sell revenue bonds to finance project

July 10, 1998|By Donna R. Engle | Donna R. Engle,SUN STAFF

A Taneytown-based manufacturer of heating and cooling equipment is planning its second major expansion in two years, a $3 million project that will increase its plant size by one-fourth.

The County Commissioners agreed this week to sell $3 million in industrial revenue bonds to finance a 40,700-square-foot addition to Evapco Inc.'s 174,250-square foot plant in the 5000 block of Allendale Lane off Route 194, on the city's south side.

Although the county would issue the bonds, the company would pay the principal and interest on them.

Financing the project through industrial revenue bonds allows the corporation to obtain a lower interest rate, Isaac Menasche, assistant county attorney, said.

Evapco will use the bond money to build a manufacturing plant for ammonia refrigeration equipment. The construction comes as the corporation is finishing a project begun in 1997 to add 33,750 square feet for offices, a research and development laboratory and manufacturing space.

When both projects are completed, Evapco will have grown from 160,500 square feet to 234,250 square feet, a 45 percent increase.

The 22-year-old corporation, which has two branches and three subsidiaries in the United States and Europe, "is a great asset to our community. It's a clean industry and there are a lot of people from Taneytown working there," said Mayor W. Robert Flickinger.

City manager Charles Boyles called Evapco's impact on the community, which has a population of 4,700, "enormous, as a tax base asset as much as an employment asset.

"I don't know exactly how much, moneywise, they bring to the community, but it's enormous," he said.

Evapco will pay $95,000 in county, state and municipal real estate taxes this year on its 27-acre Taneytown property.

The expansion is expected to add local jobs, although company officials refused to say how many. The company declined to release employment information.

The business is part of an industry that seems headed for a boom year, said Ed Dooley, vice president for communications of the Air-Conditioning and Refrigeration Institute, an industry organization in Arlington, Va.

"Shipments for May of unitary equipment were up very much over last year. On the basis of the first five months of shipments, it's looking very strong for a record year," Dooley said.

Unitary equipment is combined central air-conditioning and heat pumps for residential and light commercial use.

Demand is down for some industry products, such as large tonnage liquid chillers, Dooley said. But central air-conditioning sales should experience a rebound after dropping in 1997, he said. Evapco was founded in 1976 by Wilson E. Bradley and William E. Kahlert, former executives of Baltimore Aircoil Co., a cooling and heat transfer equipment manufacturer.

The corporation moved to Taneytown in 1991.

Pub Date: 7/10/98

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