Phoenix Medical Products expansion and planned Mountain City Firearms opening could bring 170 new jobs to Johnson County.
News of the closure of the Tsubaki Nakashima ball bearing plant in Mountain City hit like a hammer today, but the expansion of Phoenix Medical Products and the planned 2027 opening of the European American Armory (EAA) assembly plant may help soften the blow.
When Tsubaki Nakashima closed its Erwin plant back in April, the company made it clear that the future of its Mountain City operation was uncertain. The writing was on the wall, but today’s official announcement that the plant will close by the end of 2027 was still unwelcome news for Johnson County.
There is, however, some encouraging news on the local employment front.
Construction has begun on the new Phoenix Medical Products facility in the Doe Valley industrial park, where Tsubaki Nakashima is also located. The expansion is projected to create an additional 150 jobs.
Another 20 jobs are projected in 2027 when operations begin at the EAA facility near Laurel Bloomery. While that’s well short of the 100 jobs originally announced, EAA’s Keith Bernkrant remains confident the company will eventually reach that number.
The facility, located in the former Bike Factory Outlet building, has already established partnerships with several European component manufacturers to assemble and package firearms under the Mountain City Firearms name.
When we spoke with Bernkrant earlier today, he explained that he’s taking a slower approach to ensure the company’s stability and long-term success. After failing to secure what he considered meaningful support from the Tennessee Department of Economic and Community Development, Bernkrant decided to finance the operation himself, focusing first on assembly and packaging before expanding into component manufacturing with additional European partners.
“We made a pitch to Tennessee ECD , and told them they should put some money into Johnson County, but the offer they came back with was insulting,” Bernkrant says, revealing that the state offered just $157,000 to help get the facility up and running.
“So, we’re going to do it step by step,” he says. “2027 will be light. You can do this type of business with 20 people, but as we take on more and more suppliers it will grow.”
Bernkrant has submitted an application to the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), an important step toward beginning operations, and expects approval soon.
He remains confident the facility will be up and running in 2027 and says a website will be launched soon where local residents can apply for jobs.
So, the loss of Tsubaki Nakashima is certainly not good news, but as one manufacturer departs, others are investing in Johnson County’s future. Positive developments already in motion offer more than one reason to be optimistic.
