McCarthy opens Pa. retread plant

WILKES BARRE, Pa. (Oct. 14, 2016) — McCarthy Tire Service Co. Inc., which is celebrating 90 years in business in 2016, has opened a Bandag-system retread plant in Wilkes Barre that it claims will be the largest in the U.S., capable of producing 1,000 units a day at full capacity.

McCarthy Tire budgeted $3.28 million to convert a 75,000-sq.-ft. warehousing facility in Wilkes Barre — located about a quarter mile from the previous plant — and said it expects the upgrade to create 49 full-time jobs over three years and secure the jobs of 197 employees currently active in the retreading sector.

The plant started operating the first week of October, McCarthy said, at a rate of 500 tires, or 30 tons, a day. The company plans to ramp that up to 750 tires daily by year-end and to 1,000 a day by spring 2017. The new plant uses both new equipment and equipment recovered from the old plant.

Pennsylvania Gov. Tom Wolf lauded the dealership for the job creation, saying, “We applaud McCarthy Tire for its continued success and for the support it provides for the region's economic well-being."

The project was coordinated by the governor's action team, a group of economic development professionals who report to the governor and work with businesses that are considering locating or expanding in Pennsylvania. The Greater Wilkes Barre Chamber of Commerce also was involved.

The investment includes the leasehold, infrastructure improvements and new equipment purchases.

The Pennsylvania Department of Community and Economic Development is contributing as well with a $150,000 Pennsylvania First Program grant, $49,000 in job creation tax credits to be distributed upon creation of the new jobs and $22,050 in WEDnetPA funding for employee training.

Pennsylvania State Sen. John Yudichak noted that the McCarthy family has been investing in Wilkes-Barre for three generations.

“In partnership with the Commonwealth of Pennsylvania, McCarthy Tire's most recent investment will bring a new and world-class manufacturing facility to Wilkes-Barre,” he said, “proving that our workforce and our great city can compete with anyone for quality, 21st century jobs.”

Established in 1926, McCarthy Tire is considered the sixth largest commercial tire dealership in the U.S. with more than 50 locations up and down the Eastern Seaboard. It operates five other Bandag plants, as well.