Arthrex to add South Carolina site, creating 1,000 jobs with $74 million plant

Liz Freeman
Naples Daily News
Arthrex logo

Arthrex plans to build a $74 million manufacturing plant that will create 1,000 jobs over five years in Anderson County, South Carolina.

Company officials announced the project, which had gone under a secret code name, Monday in South Carolina.

The project was kept hush-hush as county incentives there were hashed out.

Surgical devices will be made at the plant, which will be 200,000 square feet. Plans are for construction to begin in the first quarter of 2018 and end in early 2019.

The expansion will not affect operations or employees in Southwest Florida, said Andy Owen, Arthrex's vice president of manufacturing.

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Reinhold Schmieding, left, founder and president of Arthrex, meets Clemson University President Jim Clements at the Civic Center of Anderson in South Carolina on Monday during an announcement of Arthrex's expansion plans.

A significant expansion of the company's headquarters in North Naples will begin in the first quarter of 2018. It will include building a 122-foot office tower and creating more of a corporate campus.

There also are plans to develop advanced manufacturing training programs that would entail partnering with community leaders in Collier County.

The new plant in South Carolina will give Arthrex sites in four U.S. counties. It has manufacturing complexes in Ave Maria as well as its headquarters in Collier, and there are two locations in California: one in Santa Barbara and the other in Industry.

“This investment is part of Arthrex’s global expansion plan to support the growth and development of new and innovative products that help surgeons treat their patients better,” Owen said about the project in South Carolina. “It also represents our continued commitment to manufacturing quality products in the United States.”

Anderson County is southwest of Greenville and includes the city of Anderson, which is the most populous municipality (190,000 residents) in the county.

Reinhold Schmieding, left, founder and president of Arthrex, speaks about the company's growth during the Arthrex announcement at the Civic Center of Anderson on Monday.

Arthrex plans to work with Tri-County Technical College in Anderson to help provide qualified workers to fill manufacturing jobs. The technical school offers in-depth programs and has a longstanding relationship with institutions, such as Clemson University, that support the manufacturing industry.

“Arthrex is pleased to bring its innovative spirit and unique culture to South Carolina, and we look forward to leveraging the outstanding work done in the area to prepare future employees for high-level manufacturing jobs,” Owen said.

The plant will create jobs for machinists, assemblers, manufacturing engineers and senior operations management, as well as other positions.

Arthrex chose Anderson primarily because of the region’s fully established and advanced manufacturing training programs, which will help fill the company’s jobs, Arthrex spokeswoman Lisa Gardiner said in an email. Tri-County was an integral part of the decision, and the plan is to develop a pipeline of qualified employees through a partnership.

Arthrex specializes in the design, development and manufacturing of surgical devices for minimally invasive orthopedic surgery, with more than 11,000 devices in its domain. The company has about 3,000 employees in the U.S.

Arthrex has dozens of locations in Europe, Asia and Latin America. The company has annual global revenue of $2.25 billion. 

Anderson County has experienced a boon in capital investments in recent years, thanks to an aggressive economic development push. In the last two years, $1 billion has been invested in new and expanding industrial facilities, according to the Anderson Area Chamber of Commerce.

Arthrex's expansion in South Carolina has been described as a "game-changer for Anderson County." Leaders there have boasted about the company's "great reputation," although they have acknowledged the manufacturer is "not a household name."

"I just think it's going to be a great addition to the families of industrial business in Anderson County," said Anderson County Council Chairman Tommy Dunn. "It's a great fit." 

The plant will be built at the Technology & Manufacturing Center in Sandy Springs. The 220-acre park has been in development for about a year.

Arthrex will purchase the entire park property from the county to build its plant.

"We didn't make any money on it," Dunn said. "We just got our money out. We just wanted to create jobs. That is all we want to do."  

South Carolina Gov. Henry McMaster, left, and Reinhold Schmieding, right, founder and president of Arthrex, talk at the Arthrex announcement at the Civic Center of Anderson on Monday.

The company will receive property tax discounts — as high as 90 percent for a decade — and other performance-based incentives from the county, spelled out in a more than 40-year agreement. The agreement, valued at more than $12.9 million if all commitments are met, is scheduled for a final vote Tuesday.

The state's Coordinating Council for Economic Development approved job development incentives related to the project.

“South Carolina’s business-friendly climate continues to attract companies in every industry, and we’re proud to welcome Arthrex Inc. to our growing business community," said South Carolina Gov. Henry McMaster in a statement.

"This is a milestone for Anderson County," McMaster said, "and we can’t wait to see the difference these jobs will make in the region.” 

Daily News reporter Laura Layden and the Anderson (South Carolina) Independent Mail contributed to this story.