Lord Corp. plans Cary expansion, will seek incentives first

Lord Corp. is running out of room on its Cary campus.

The board of the private company recently approved adding a new 51,000 square-foot office building. But executives first plan to discuss with Cary and state officials about potential incentives to help foot the bill.

"It's the right thing to do for our shareholders," CEO Rick McNeel said.

But he declined to comment on specifics, or whether incentives are a key factor in Lord Corp.'s decision to expand in Cary or somewhere else.

The N.C. Commerce Department won't promise certain grants tied to jobs unless a company is considering expansion out of state. Lord Corp. could still be eligible for tax credits and local financial aid.

"We haven't put a proposal on the table," McNeel said. "I'd rather not negotiate in the newspaper."

The company employs about 350 people in Cary, housed in five buildings. Although McNeel cut about 8 percent of Lord Corp.'s global workforce in 2009 as the recession hit, the company has resumed expanding. It now employs about 2,650 people worldwide and is hiring at every facility it owns in nine countries.

The company would like to have its new building ready by the end of next year and is working with five contractors to put plans in place. "We're going to be busting at the seams," McNeel said.

He expects to talk with state and local officials about possible incentives during the next several months.

Lord Corp.'s Cary headquarters includes offices and research labs. Most of its manufacturing is done at other facilities.

The company makes adhesives, coatings and other products that help control noise and vibration in vehicles, tractors, heavy equipment and airplanes.

Revenue rose to $720 million last year, up about 20 percent from 2009, McNeel said. The company, which was founded in 1924, doesn't release detailed financial results.

McNeel expects revenue to rise about 10 percent this year, fueled by demand in China, India, Eastern Europe and Latin America. The United States also began showing more signs of life in the fourth quarter and the trend has carried into this year, he said.

The company built a new factory in China two years ago, and one in Germany last year. Lord Corp. is planning a new chemical plant in Brazil, where sales rose 40 percent last year.