Nevada County Picayune and Gurdon Times Newspaper Archive

Ground broken for Prescott Rubber in Industrial Park

History was made in Prescott and Arkansas with groundbreaking ceremonies of a new plant.

The groundbreaking was held Wednesday, March 10, for Prescott Rubber, Inc., a Malaysian company locating in the Prescott Industrial Park.

What made it historic is this is the first company from Malaysia to build a plant in Arkansas, though the nation does other business with the state.

The weather was perfect for the groundbreaking, with blue skies, a warm breeze and plenty of sunshine.

Representatives from the company were on hand, as were local officials and representatives from government state and federal officials.

Prescott Mayor Howard Taylor kicked things off saying this was one of the reasons he became a public official.

"I know you'll be successful," Taylor said to the Malay officials.

Ed French followed with a letter from Sen. Blanche Lincoln.

"Ours is an increasingly interconnected world," Lincoln wrote, in which commercial and cultural ties can be extended over continents, leading to stronger local and national economies throughout the world. I'm delighted Prescott Rubber will be bringing new jobs and economic growth to Nevada County and Southwest Arkansas while opening new avenues for our state to forge relationships throughout the world."

Arkansas Gov. Mike Huckabee also sent a letter of congratulations for the event.

The letter was read by Jon Chadwell, executive director of the Prescott-Nevada County Economic Development Office.

"Through a partnership between the Arkansas Department of Economic Development, USDA Rural Development, the Economic Development of Arkansas Fund Commission, the City of Prescott and the Prescott-Nevada County Economic Development Office, a new 18,000 square foot facility will be built in the Prescott Industrial Park," he wrote. "I express my appreciation to all the people who have played a role in making this project a reality."

N. Sukomaran, with the Malaysian Investment Development Authority, provided information on Malaysia, along with a history of how the company came to choose Prescott as the site for the plant.

"We are carrying the Malaysian flag to this part of the world," he said.

Malaysia is a nation of 24 million people in the heart of Southeast Asia, he said, and is a fast developing country.

Malaysia has the tallest building in the world with the twin towers of the Petronox Building, and is known for its industrial programs.

The country, he said, is one of the world leaders in the manufacture of computer chips, and exports electronic equipment, furniture and electrical equipment.

The Malaysian Investment Development Authority develops business between Malaysia and the United States, covering states primarily in the South and Midwest.

Malaysia, Sukomaran said, was a pioneer in the rubber industry, starting in the early 19th century, and at one time was the world's largest producer of rubber.

Arkansas, he said, has been active in Southeast Asia, especially in Malaysia. In fact, several Arkansas companies have offices located in the country, including Murphy Oil and AllTel.

Students from Malaysia also attend Arkansas colleges and universities, he said. Those include the University of Central Arkansas, the University of Arkansas at Fayetteville and Southern Arkansas University at Magnolia.

Alan McVey, with the ADED, said the ADED was glad to be part of the team bringing the plant to Prescott.

"Through partnerships," he said, "we view the world as a community."

People in Arkansas, he said, are friendly toward business and industry, with this new plant sending a message throughout the world Arkansas is open for business.

John Allen, with USDA Rural Development, said the company would be happy with the people it hires from Prescott because people in this part of the country have a good work ethic.

Terry Sherwood, with the Southwest Arkansas Planning and Development District, said his organization helped write the grants for the ADED to help get the plant in Prescott.

"This is a beautiful day to build for the future," he said. "When you take ingenuity, the byproduct of an existing industry and develop a partnership, good things happen."

Chandra Pillai, with Prescott Rubber Inc., said this has been a two-year process to get to this point.

He said the company didn't choose Prescott by accident, it was an opportunity, with Firestone the reason the plant is being built here.

When asked why Prescott, he said, the reply is materials.

Prescott Rubber has a process in which the scraps from Firestone can be turned into other products.

For years it was believed these scraps couldn't be used for anything else, and were thrown into landfills.

The process used by Prescott Rubber, Pillai said, will make the rubber as good as virgin rubber.

In 1998, he said, Firestone sent a sample of its scrap to a plant in Bristol, Okla., a town near Tulsa. The scrap was tested, with the process working.

Pillai came to Prescott in July 1998, talked with officials at Firestone with the results turning out well.

Initially, the idea had been to take the scrap to Bristol, but it was suggested to build a plant in Prescott instead.

Pillai visited with Chadwell and laid out his plans. He said the company was offered excellent incentives and the idea was a perfect match.

Prescott, he said, met certain criteria needed to get the plant here. This included the right volume of raw material, a market, suitable land with room to expand, access to roads and railroads, utilities, fire stations, housing, schools and banking.

Everything needed, he said, was in Prescott or nearby.

"Rarely do you find roads and rail lines this close," he said. "We bring technology to convert scrap rubber into the same or other products. This will remove it from the landfill.'

Eventually, the plant will employ up to 30 people and contribute about $750,000 to the economy with its payroll.

"If we produce something many polymer companies use, we can draw more people to Prescott," he said. "I believe at some point we may stretch I-540 to Prescott. We need the communities help. The folks in Prescott are good people. We like them and want to be part of the community."

John Brannon Jr., president of the Interlocal Cooperative Industrial Development Board, said it has been a pleasure to work with Pillai and it should develop into a long-term relationship.

"They're men of integrity a pleasure to work with," he said.

Chadwell closed the event, saying it takes time to work on these projects, but pays off in the long run.