Waco fastener firm to invest $9.1M, expand to staff to 504 under city-county deal

Howmet Aerospace, also known as Howmet Fastening, operates a factory on Imperial Drive

Howmet Fastening Systems is pursuing a business grant from the city of Waco and McLennan County as it pledges to expand its plant, install $9.1 million in new equipment and create 17 new full-time positions.

The Waco City Council will vote Tuesday on giving Howmet a five-year break on personal property taxes, excluding inventory taxes, from 2023 to 2027. McLennan County commissioners also will vote on tax breaks, bringing the city and county total to $101,443.

Howmet Aerospace operates at 8001 Imperial Drive, producing industrial fasteners, latches and bearings for use in the automotive, commercial truck and trailer, rail, solar, wind and material-handling sectors, according to information in the Waco City Council’s information packet.

The Waco factory has been that address since 1973, under names including Huck International and Arconic, which are now under the Howmet umbrella of brands.

As Arconic Fastening Systems & Rings, the factory made heavy-duty fasteners for trucks and rail cars. It pursued sales tax rebates in 2018 on a nearly $45 million investment in the facility.

The Waco City Council endorsed Arconic’s request to participate in the Texas Enterprise Zone program that would allow the plant to receive a $2,500 rebate for each of its 403 employees. Arconic said it would invest $41.3 million in equipment and machinery upgrades, as well as $3.5 million in facility improvements, the city of Waco reported.

This time, Howmet proposes spending nearly $9.2 million to create a new electroplating line and install blind cell machinery. It said it hopes to have the equipment installed by the end of this year, and to have it operational by the end of 2023, said the Waco City Council’s information packet.

Howmet employs 487 full-time staffers making an average annual wage of $61,000, and with health insurance benefits. It hopes to push employment to 504, with the 17 new hires enjoying a $55,000 average annual salary and health insurance benefits.

All new positions will make at least $15 an hour, and will be offered health insurance benefits under the agreement.

Waco has proposed tax breaks on personal property ranging from 40% to 10% over five years, excluding inventory taxes.

Howmet did not return calls for comment Monday afternoon, nor did Kent George, who oversees Waco’s economic development office.

“Corporate is looking at the opportunity to expand production capability at its Waco operation, and the city and county are considering a request for support,” said Kris Collins, senior vice president of economic development at the Greater Waco Chamber of Commerce. “We value our existing business, and always look for ways to support additional investment.”

Collins works closely with Waco and McLennan County as the Greater Waco Chamber’s primary industry recruiter. Collins typically provides the council and commissioners with an analysis of when the city and county can expect a return on their investment in tax breaks and other incentives.

A breakdown prepared by the city shows Howmet receiving nearly $68,000 in tax breaks from Waco over five years, while the city will see $212,429 in additional tax revenue during that period due to Howmet’s $9.1 million investment in new machinery. The company will see $33,443 in breaks from the county, which will enjoy $104,538 more in tax revenue.