 | Hendersonville business & community directory |
|
This is an archived page that may contain outdated or incorrect information. Please visit www.Hendersonville.com for the latest news, events, and more.
ZF Lemforder Corporation announced it would locate its new facility in Newton, North Carolina, bringing 200 jobs and up to $28.8 million in additional investment to the area. ZF Lemforder Corporation, an automobile component manufacturing and supply company, is the tenth recipient of an award under the new state Job Development Investment Grant (JDIG). "ZF Lemforder Corporation�s decision to invest in Catawba County will mean sustainable, high skill, high paying manufacturing jobs for the area," Governor Easley said. "This is the kind of work that will not go offshore. Automotive-related industries have made significant investments in North Carolina over the past few years and now employ more than 120,000 people statewide. Companies are choosing to come to our state because of the low tax burden, excellent infrastructure and superior educational systems. Our business climate is ranked number one nationally and today�s announcement is proof our aggressive approach works." "This new facility is a key part of our suspension components strategy in North America," said Jim Stacey, president and chief operating officer, ZF Lemforder Corporation Car Chassis Technology Division. "This new plant provides us with the space we need today and allows the opportunity to add future business." ZF Lemforder is the car chassis technology division of ZF Friedrichshafen AG, a leading worldwide supplier of driveline and chassis technology. Headquartered in Friedrichshafen, Germany, ZF is among the 15 largest automotive suppliers in the world. The company has a total workforce of 53,300 at 119 locations in 25 countries, and combined revenues for the group totaled more than $10 billion in 2002. ZF operates a large manufacturing network in North America, combined with global research and development capabilities, to provide advanced technology to the region. The ZF Group North American Operations Technical Center is located in Northville, Michigan. ZF employs a total workforce of 6,000 in the NAFTA region. The company plans to start construction on the new 150,000-square-foot facility, which is expected to be complete in 2005. ZF will initiate incremental hiring later this year through the Employment Security Commission. These jobs will have an average salary of $33,400 per year. Under the terms of the agreement authorized unanimously today by the state Economic Investment Committee a 10-year grant will be established. Over the life of the grant, the N.C. Department of Commerce estimates the project will:
For each year the company meets required performance targets, the state will provide a grant equal to 65 percent of the personal state withholding taxes derived from the creation of new jobs. If the company creates the jobs called for under the agreement and sustains them for 10 years, the agreement could yield maximum benefits to the company of $1.7 million over the life of the grant. The Job Development Investment Grant initiative, proposed by Easley and the state Economic Development Board in 2002, awards up to 15 grants annually to strategically important new and expanding businesses and industrial projects. These grants are only awarded to projects whose benefits exceed their costs to the state and which would not locate in North Carolina without the grant. Cumulative annual grant amounts are capped at $10 million. The first Job Development Investment Grant was awarded in May 2003 and has been responsible for bringing 4,421 new jobs and more than $256 million in investment in North Carolina. Twenty-five percent of the eligible grant amount for each announcement made in more prosperous counties will be used to fund the state�s Industrial Development Fund, a rural infrastructure fund. This fund, which will be worth $15 million, works toward the fulfillment of Easley�s commitment to build One North Carolina. Many partners played a key role in this project including the city of Newton, Catawba County, the Catawba County Economic Development Corporation, Catawba Valley Community College and Leak Goforth Company. (Images provided by ZF Lemforder Corp.)
|
