Big Moves for Cangshan Cutlery in Georgetown
Georgetown, Texas, is set to welcome an exciting development in its rapidly growing economy. Cangshan Cutlery Co., famous for its award-winning knives, is officially relocating from California to the Austin suburb of Georgetown. This move was announced back in 2021, but a series of twists and turns led to a change in plans from an earlier proposal to set up shop in Leander.
Plans in Motion
The new facility will span 135,000 square feet and is expected to be fully operational by early 2029. Recently, on September 24, the Georgetown City Council approved key incentives for the company, aiding in a hefty $45 million improvement project at its future headquarters located at 107 Halmar Cove. The project aims to bring in over 150 jobs to the area.
Original Plans and Changes
Initially, Cangshan planned a major move to Leander, with ambitions for a significant 400,000-square-foot manufacturing facility at 204 Heritage Grove Road. However, escalating lease costs at their California headquarters forced them to shift gears, prompting an earlier than planned relocation to Georgetown in 2022. According to officials, the firm is currently working to sell its 41 acres in Leander, noting that there has been growing interest in the site.
What’s Next for Cangshan?
The Georgetown site will not only serve Cangshan but will also host a newly established manufacturing company called Austin Cutlery & Tool LLC. This new unit will produce items for both Cangshan and New Star Food Service LLC, a sister company offering a range of kitchen products. There are also plans in the works to manufacture a third cutlery brand at this site. All these entities operate under the umbrella of Everware Corporation and Affiliates.
Kickstarting the Project
Company leaders are eager to get the ball rolling. They recently leased a 158,000-square-foot building in NorthPark35 located at 201 Velocity Drive to expedite the move of their warehousing operations. This will allow them to enter a two-phase project aimed at boosting commercial production, incorporating automated laser-cut manufacturing technologies.
Production Goals
According to Rick Loofs, the Chief Operating Officer, the first phase involves launching 50,000 square feet of the facility by early 2026, allowing the production of 3,000 premium cutlery pieces each day. By early 2029, the entire 130,000 square feet space will enable the company to roll out an impressive 11,000 premium cutlery pieces and 15,000 forged cutlery pieces daily. Eventually, they aim to produce over 30 million pieces annually.
Community Impact and Incentives
The Georgetown City Council has offered two 10-year incentives. The first involves a $302,000 job creation grant, rewarding the company $2,000 per job for up to 151 jobs, provided they maintain an average salary of $60,000. The second is a 75% abatement on business personal property taxes, estimated at around $941,421. These incentives are contingent on an investment of $45 million within three years of starting the agreement, yet Loofs anticipates that the total investment will exceed $50 million.
Anticipation for Growth
“Cangshan Cutlery has been a fantastic community partner since locating in Georgetown and we are excited to see the company grow and expand,” said Cameron Goodman, Georgetown’s director of economic development. He emphasized that this expansion adds significant investment and job opportunities, helping diversify the local economy.
A Bright Future Ahead
Cangshan is optimistic about its new path. Despite experiencing impressive growth of 40% to 50% during the pandemic, the company now faces a more stable market and expects single-digit growth moving forward. “There are so many moving pieces there,” said Henry Liu, the company’s founder.
Community and Hiring
Currently, Cangshan employs 44 people, but plans to ramp up hiring in the upcoming year. The company leaders remain cautious about managing finances for this substantial investment, yet are focused on building a strong organizational culture that attracts new talent. “We’re trying to develop a really strong culture here,” Loofs noted.
Georgetown is becoming a manufacturing hub, with Cangshan joining other companies that have made the move recently, including GAF Energy LLC and US Farathane Corp. Cangshan’s transition marks a pivotal moment for both the company and the local economy, bringing jobs and innovation to Georgetown.
