Today, Governor Stein announced that Pratt & Whitney, an RTX business (NYSE: RTX), will expand its turbine airfoil manufacturing plant in Buncombe County, a significant vote of confidence in western North Carolina. The company’s expansion project will create 325 additional jobs and includes an additional investment of $285 million in Asheville.
"Western North Carolina’s economy took it on the chin after Hurricane Helene, yet still it remains an incredible place to work and do business,” said Governor Josh Stein. “Pratt & Whitney clearly sees the opportunities in North Carolina and the strength of our highly skilled workforce. We look forward to welcoming them here.”
Pratt & Whitney is a world leader in the design, manufacture, and service of aircraft engines and auxiliary power units. More than 17,000 customers operating in more than 200 countries and territories use Pratt & Whitney engines, with more than 90,000 engines currently in service. The company’s Asheville facility, first announced in October 2020, produces high-tech turbine airfoils, an important component in aircraft jet engines. The company’s new project will expand its production capacity to meet growing customer demand.
“Pratt & Whitney’s continued investment in Asheville is critical to meet the growing demand for our products, such as the GTF for the A320family and the F135 for the F-35 Lightning II,” said Asheville General Manager for Pratt & Whitney Dan Field. “We would like to thank the state, Buncombe County and Governor Stein for their support on this project. This latest round of investment allows us to add critical process elements for the manufacture of turbine airfoils and increase the overall delivery output of this facility, enabling us to deliver on our customer commitments while creating hundreds of new jobs in the Asheville community.”
“The aviation industry is a key driver of North Carolina’s economic success and Pratt & Whitney’s decision strengthens our aerospace ecosystem substantially,” said Commerce Secretary Lee Lilley. “We will continue to invest in support systems, like our community colleges and universities, that help employers like Pratt & Whitney succeed in our state—and bolster Western NC's economy.”
The North Carolina Department of Commerce led the state’s support for the company during its site evaluation and decision-making process.
The average salary for the new positions will be $62,413, compared with an average wage in Buncombe County of $55,416. The new positions will bring an annual payroll impact to the community of more than $20 million per year.
The company’s project in North Carolina will be facilitated, in part, by a Job Development Investment Grant (JDIG) approved by the state’s Economic Investment Committee earlier today. Over the course of the 12-year term of this grant, the project is estimated to grow the state’s economy by nearly $2.1 billion. Using a formula that takes into account the new tax revenues generated by the new jobs and the capital investment, the JDIG agreement authorizes the potential reimbursement to the company of up to $4,202,250, spread over 12 years. State payments only occur following performance verification by the departments of Commerce and Revenue that the company has met its incremental job creation and investment targets.
The project's projected return on investment of public dollars is 317 per cent, meaning for every dollar of potential cost, the state receives $4.17 in state revenue. JDIG projects result in positive net tax revenue to the state treasury, even after taking into consideration the grant’s reimbursement payments to a given company.
Because Pratt & Whitney chose to expand in Buncombe County, classified by the state’s economic tier system as Tier 3, the company’s JDIG agreement also calls for moving $1,400,750 into the state’s Industrial Development Fund – Utility Account. The Utility Account helps rural communities finance necessary infrastructure upgrades to attract future business. Even when new jobs are created in a Tier 3 county such as Buncombe, the new tax revenue generated through JDIG grants helps more economically challenged communities elsewhere in the state.
“Many local, regional, and state organizations have worked hard to bring this new economic development project to Buncombe County, all while working diligently through the many details of storm recovery,” said Representative Eric Ager. “We look forward to seeing Pratt & Whitney continue to thrive in our great community.”
Partnering with the North Carolina Department of Commerce and the Economic Development Partnership of North Carolina on this project were the North Carolina General Assembly, the North Carolina Community College System, the North Carolina Departments of Revenue and Transportation, N.C. Commerce’s Division of Workforce Solutions, the Office of Congressman Chuck Edwards, the Golden LEAF Foundation, Duke Energy, Asheville-Buncombe Technical Community College, Biltmore Farms, Buncombe County, the City of Asheville, and the Economic Development Coalition of Asheville and Buncombe County.