LEE COUNTY ECONOMIC DEVELOPMENT CORPORATION Southern Base of the Research Triangle Region NEWS RELEASE FOR IMMEDIATE RELEASE Friday, July 20, 2007 FRONTIER SPINNING MILLS ANNOUNCES $20 MILLION EXPANSION IN SANFORD SANFORD -- Frontier Spinning Mills, based in Sanford and one of the world's largest spun yarn manufacturers, has announced that it will expand one of its two Sanford facilities over the next several months, adding 42 jobs to the local economy. The $20 million project will include an additional 70,000 square feet of manufacturing space at its campus on Boone Trail Road. About $4 million of the total investment will be used to construct the new facility. The balance will be invested in equipment to manufacture spun yarns for the knitting and weaving trades. When the new jobs have been added, Frontier Spinning Mills' local workforce will grow to roughly 450 people. Nationally, the company currently employs about 1,700 people in nine plants throughout the Southeast. George Perkins, CEO of Frontier Spinning Mills, said the company considered other locations for the expansion, including Mayodan in this state and Wetumpka, Ala., where Frontier already operates manufacturing facilities. But Sanford was attractive for a number of reasons. "This is our home base and our ability to manage the operation closely is important," Perkins said. "We know the community and are comfortable doing business here. The availability of a qualified workforce was also important to us." Cooperation among governments and the availability of local incentives also were factors in the decision, he said. The project was possible, in part, because of an incentive package of $564,564 over five years approved recently by city and county officials. The project also received a $40,000 grant from the One North Carolina Fund, an economic development program sponsored by the North Carolina Department of Commerce. Frontier Spinning is one of several local industries to expand recently in Lee County. That's a good sign for the local economy, according to Bob Heuts, who directs the Lee County Economic Development Corp. "When our existing businesses expand locally, that makes it clear to everyone that doing business in our community is worthwhile and profitable," Heuts said. "Obviously, Frontier's investment is good for our community because it provides good jobs and adds to the local economy. "It also makes Sanford and Lee County more attractive to other companies outside our area looking for a good place to locate or expand." Heuts said the Frontier project couldn't have been secured in Lee County without the assistance of several other organizations -- including the North Carolina Department of Commerce, Progress Energy and Central Carolina Community College. Frontier Spinning Mills was founded in 1996. In addition to the two facilities in Sanford, Frontier Spinning Mills operates plants in Clarkton, Mayodan and Stoneville; Cedartown, Ga.; Cheraw, S.C.; and Wetumpka and Lafayette, Ala. The Lee County Economic Development Corp. is a nonprofit organization established to attract industry, enhance job opportunities and promote sound planning across Lee County. Funding is provided by the county, as well as the City of Sanford and Town of Broadway, the county's two municipalities. -- 30 -- Media Contacts Bob Heuts, Director Jane Haber, Administrative Assistant 919.774.8439 (phone) 919.775.5410 (fax) info@lcedc.com (e-mail) More On the Web Frontier Spinning: http://www.frontierspinning.com LCEDC Media Web: http://www.lcedc.com/media/ This release: http://www.lcedc.com/media/releases/nr072007.txt