HUNTSVILLE, Ala. — The State of Alabama told WHNT News 19 Monday it is reviewing its incentive agreement with firearms maker Remington, which was lured to Huntsville in 2014 with a rich package of state and local incentives.
The State of Alabama had pledged more than $38 million to retrofit and equip the former Chrysler plant near Huntsville International Airport for Remington. The deal also included a 10-year commitment to help recruit and train workers, an incentive valued at $16 million.
WHNT News 19 asked the Alabama Department of Commerce Monday about its relationship with Remington.
We were sent the following statement Monday evening from the Alabama Department of Commerce:
“In addition to disallowing Remington’s final $3 million cash incentive payment from the state, the Alabama Department of Commerce is in the process of reviewing the existing project agreement with Remington, which includes recapture provisions.”
“The review will examine the incentives received by the company and the company’s current status and future projections to determine the appropriate course of action for the state. Meanwhile, AIDT’s commitment to the training and recruitment of workers has been reduced to reflect the size of Remington’s Alabama workforce.”
WHNT News 19 asked a Remington spokesman for the number of workers and the current payroll at the Huntsville plant. The spokesman said it would take “a few days” to get that information from the company’s human resources department.
Remington’s announced expansion to Huntsville in 2014 included a pledge of nearly 2,000 workers by 2022, with a steady ramp-up to that figure beginning in 2015. Those targets came with cash incentives for the company, but Remington, which filed a strategic bankruptcy last year, hasn’t been able to keep up with the job expansion plans.
The City of Huntsville and Remington reworked the incentive deal in November, AL.com reported, with Huntsville removing the expectation that Remington would have more than 1,000 workers by the end of 2018. The new commitment expects the company to have 415 employees by the end of 2019 and maintain at least that figure until 2023 when it is supposed to have 1,868 employees.
The company also recently repaid about $1 million in incentives to local governments in Limestone, Madison, and Morgan counties.
Remington is facing the prospect of a lawsuit from parents of children killed in the Sandy Hook school massacre. The Connecticut Supreme Court ruled Thursday a lawsuit could go forward based on how the company advertised an AR-15 type rifle used in the attack.