A Florida ammunitions manufacturer is shooting to begin operations in early spring.

DSE Inc., based in Tampa, has spent $25 million to convert the former National Textile plant into a facility to manufacture small grenades for the military. The company expects to employ as many as 200 people.

"DSE has already done some hiring for management positions, but it has not really done it's major hiring yet," Cherokee County Development Board Executive Director Jim Cook said. "Once the workers are hired and trained, we expect the company should begin production in early spring."

Any announcement on hiring would be a welcome boost for the county's economy.

Cherokee County has an unemployment rate of 11.6 percent. State economists are predicting the state's unemployment rate could surge to 14 percent next year.

DSE Inc. began as a metal parts manufacturer in 1979. This will be the company's first plant in South Carolina.

The firm will produce small grenades slightly larger than a shotgun shell. The ammunition made in Gaffney will initially be used by the military as training rounds.

DSE's upcoming plans to open were one of the few bright spots at a special called Development Board meeting Monday on the Spartanburg Community College campus. The meeting was called to brief Development Board members on efforts to recruit new industrial prospects.

No action was taken following the closed session.

The Development Board tentatively plans to hold its annual meeting on Feb. 17 to present its economic investment report for 2008.

Cook indicated the county has a couple of companies that could announce plans early next year. He declined to be more specific, citing an existing confidentiality agreement with the prospective companies.