New ammo plant brings 90 new jobs to East Texas Posted: Jun 25, 2015 4:25 PM CST Updated: Jun 25, 2015 6:36 PM CST By Jeff Ferrell Connect MARSHALL, TX (KSLA) - It was an effort 6 years in the making, and there are tens of millions of dollars at stake in economic development for East Texas. We're talking about the Rio Ammunition Plant that's now open for business in Marshall, Texas. Additional Links New jobs coming to the ArkLaTex from international business Marshall ammunition plant about to be a loading zone With the snip of a giant pair of scissors for a symbolic ribbon cutting ceremony inside the brand new facility, there was no thunderous bang of a shotgun shell explosion, but instead a smattering of applause. It ushered in the era of Rio Ammunition to Marshall, Texas and was all part of what the company called an 'Inauguration' as they opened their doors to the community to celebrate their opening. Marshall Economic Development Corporation (MEDCO) Board Member Hal Cornish told the large crowd of visitors, "You know, they're the largest manufacturer of shotgun shells in the world. So, we're delighted that they chose us to build the plant here." There's big money at stake, an estimated $55 million in economic development over the next decade. MEDCO Executive Director Donna Maisel broke it all down for us. "We're talking about payroll, we're talking about property taxes, sales taxes, international visitors from other divisions of the company and their customers," said Maisel. We had been hoping to get a view inside of plant operations to see how they make the shotgun shells. Unfortunately, they would not allow cameras inside, saying that there are proprietary secrets inside. But, KSLA News 12 was there at the very beginning, in April of 2014, for the groundbreaking of the $19 million overall investment by parent company Maxam, based in Spain. Just four months ago, as construction neared completion, we got a sneak peak inside the facility. We're told they chose Texas because it's one of the best markets. As for why Marshall, Maisel explained, "They chose Marshall because of the Texas State Technical College and because of the community support and endorsement of the company and their trust and belief in them." While the plant now employs 90 people, there are already plans for future growth. It manufactures shotgun shells for hunting and competition sporting events and there are plenty of potential customers. There are an estimated 20 million recreational shooters in the U.S. Rio Ammo says it has grown to become the global leader of shotgun ammunition with 30 percent of worldwide sales. Copyright 2015 KSLA. All rights reserved.
...but wait! It's another %1'er come to take advantage of the little guy by putting mom and pop ammo manufacturers out of business! And providing jobs with not enough smoke breaks, and free stuff! They will bring in all the wrong kind of people, (like guys with EVIL BLACK GUNS) and all that ammo will secretly funnel itself to gangbangers, and illegals.........oh, wait a minute.... None of that crap really happens? It doesn't even load itself? No one round has ever fired itself in anger? REALLY???? then carry on then. Welcome to Texas.
I have good feedback on Rio trap loads, they all go bang and are consistent performers. Nothing heard yet about reloading the Rio hulls, most of the folks around these parts have standardized themselves on some other brand of hull (including me.)
Typically, the larger corporations tend to manufacture where the labor is cheapest, and where government intrusion is not too cumbersome, but if they do stick with a location in the United States, it's got to make them money or it is just bad business sense. I won't even pretend to understand all of the many implications with tax incentives and breaks or advantages to not having to import. I do know some larger corporations tend to build in lower income areas, taking advantage of the cheapest labor possible, and through the years, the U.S. has made it so unattractive to do business here that many companies simply moved overseas. If they do stay in the U.S., they will still build in the low income areas to draw in cheap labor, or at the very least, they will desire less regulation and intrusion making manufacturing worthwhile, and the cost of doing business will be offset by the cost of the product increasing if deals and incentives cannot be enticing enough. In any case, I suppose it is good to see more jobs created, especially the gun/ammo industry. Hopefully Texas can keep improving its standing in this department and they can draw in some big dogs for other calibers aside from shotgun shells, too. Remington is manufactured primarily (perhaps exclusively) in Arkansas, Hornady is in Nebraska, and Corbon is in S. Dakota. We still have a problem with lead smelting: Last U.S. Lead Smelter to Close, Ammunition Manufacturing to Feel Effects
East Texas was and still is to a point a producer of Pine Trees. Sand based farm land and not a lot else. Happy to see those folks have the work. Shot guns are for snakes and I recently stumbled on a case of Dove Loads that will last me forever. I reload .44 Special snake shot, no shot shells..
I've bought some of their 00 Buck loads but haven't tried them yet. Maybe on Tuesday.... I read in a number of places that Rio is reliable, and has a bit wider shot diversion than Federals do, but since it's for HD ranges , that won't be a huge difference for me. And like others, I'd love to see someone making more .22LR no matter where it is. We can buy lead from foreign suppliers cheaper than we can process it here anyway. jim
Welcome to Texas. We have no corporate income taxes, which is a big positive for any business and we are certainly gun friendly. Send us some more. If labor is cheap it's because people need jobs and are willing to work rather than remain or become wards of the state.
