Conway, AR — Intersate Group announced today that it will begin manufacturing cargo trailers in Conway. The Phoenix, Ariz-based company will be housed in several buildings on a 16-acre portion of the former Spirit Homes facility at McNutt and Highway 60.

By the end of the year, 30-40 people will be employed in the refurbished plant facility, with a projected long-term total of 100 jobs. Renovation of the buildings will begin in June, and production is anticipated to begin in September.

"This is a quality operation," said Gov. Mike Huckabee, who attended the announcement at the Conway Area Chamber of Commerce. "Arkansas recently earned the distinction of having the lowest cost of doing business in the South, and that should help make this company a success here. We welcome them to Arkansas and know they'll be impressed with the quality of our workforce."

Michael Snow, president of Interstate Group, said, "We looked at Tennessee and Texas before selecting Arkansas for our new operation. We chose Conway because of its excellent location and because of the opportunity to use an existing mobile home facility that's a natural fit for our product. Also, there is a labor base here with experience in this industry. All of these considerations will mean a lower cost of doing business. We also appreciate the cooperation of the state and local officials."

"We have truly enjoyed working with Interstate these past several months," said Bill Hegeman, president of the Conway Development Corporation. "From our initial meetings, we believed they were a perfect fir for Conway. Their wage-and-benefits package and team-based environment are a welcome addition to an already strong manufacturing community."

Interstate operates with a team-based, piece-rate approach. When production goes up and productivity improves, wages go up. After an initial start-up period, wages will average $14-$15 an hour, Snow said.

Interstate Group, which began operations in 1955, produces a full line of work and recreation trailers. In addition to its Phoenix headquarters, the company has manufacturing plants in Kingman, Ariz., and Nampa, Idaho. Most of the company's dealers are currently in the western United States and Canada, but Interstate is now recruiting dealers within a 500-mile radius of Conway.

"Interstate is not only a big win for Conway, but also for the entire Central Arkansas region," said Conway Mayor Tab Townsell. "They will draw employees from a large area. We welcome them as Conway's newest corporate citizens and look forward to watching them grow their business here."

"We're very glad that Interstate Group found such a good fit with both the facility and the excellent workforce in Conway," said Jim Pickens, director of the Arkansas Department of Economic Development. "They'll soon discover firsthand why Arkansas has the No. 1 business climate in the South, and we are certainly pleased they chose our state."