North Carolina Governor Josh Stein today announced a $100 million investment from automotive supplier BorgWarner, which is expected to add 378 jobs in Henderson County. The company will use the funds to vertically integrate operations.
Last October, the company announced a nearly $75 million investment to build an advanced manufacturing facility in Hendersonville. The expansion project will add 140,000 square feet to BorgWarner's current site.
New positions with the company will include technicians, logistics personnel and production staff. While salaries will vary, the average annual salary will be $67,047, which exceeds the Henderson County average of $54,118.
BorgWarner’s expansion will be facilitated, in part, by a Job Development Investment Grant (JDIG) that was approved by the state’s Economic Investment Committee earlier today.
Over the 12-year term of the grant, the project is estimated to add $1 billion to the state's economy. Using a formula that accounts for the new tax revenues generated by the new jobs and capital investment, the JDIG agreement authorizes the company's potential reimbursement of up to $3,685,500 over 12 years.
According to the governor, state payments are made only if the company meets incremental job-creation and investment targets.
The project’s projected return on investment of public dollars is 88 percent, meaning for every dollar of potential cost to the state, the state receives $1.88 in state revenue.
Because BorgWarner, which is based in Auburn Hills, Michigan, chose a site in Henderson County, classified by the state’s economic tier system as Tier 2, the company’s JDIG agreement also calls for moving as much as $409,500 into the state’s Industrial Development Fund – Utility Account. The Utility Account helps rural communities finance infrastructure upgrades.
BorgWarner is a supplier for every major global automotive OEM. The company has some 37,500 employees across 81 global facilities.
