Today Governor Josh Stein announced BorgWarner Inc. (NYSE: BWA), a global product leader of sustainable mobility solutions, will add 378 jobs in Henderson County. The company says it plans to invest $100 million in Hendersonville to vertically integrate its operations and produce critical components to support business growth.
“We congratulate BorgWarner on its new expansion in Henderson County,” said Governor Josh Stein. “This decision to reinvest in our state underscores the advantages of investing in western North Carolina. Thanks to our manufacturing economy and our world-class workforce, North Carolina remains the best place to do business.”
For more than 100 years, BorgWarner has been developing innovative mobility solutions for every major global automotive Original Equipment Manufacturer (OEM), growing its workforce to 37,500 people throughout 81 facilities worldwide. This expansion will add 140,000-square-feet to its current Hendersonville site to manufacture products that will continue to fuel its business growth.
“BorgWarner is proud to continue to invest in the state of North Carolina to bring new technologies to market and provide jobs to local residents,” said Joseph F. Fadool, President and Chief Executive Officer of BorgWarner Inc. “We appreciate the grant and continued support from the state of North Carolina to expand our manufacturing footprint here in the United States.”
“When companies like BorgWarner deepen their roots in rural North Carolina, they signal to the rest of the world that success and opportunity are awaiting them here,” said N.C. Commerce Secretary Lee Lilley. “Advanced manufacturers are important to our growing supply chain, and we are committed to making sure the largest manufacturing workforce in the Southeast is also highly skilled and resilient for the jobs of today and tomorrow.”
New positions with the company will include technicians, logistics personnel, and production staff. Although salaries for the positions will vary, the average annual salary will be $67,047 which exceeds the Henderson County average of $54,118. These new jobs could create a potential annual payroll impact of more than $25.3 million for the region.
BorgWarner’s expansion in North Carolina will be facilitated, in part, by a Job Development Investment Grant (JDIG) awarded to BorgWarner Industrial Solutions LLC, which was 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 $1 billion. Using a formula that takes into account the new tax revenues generated by the new jobs and capital investment, the JDIG agreement authorizes the potential reimbursement to the company of up to $3,685,500, spread over 12 years. State payments only occur following performance verification each year 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 88 percent, meaning for every dollar of potential cost to the state, the state receives $1.88 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 BorgWarner 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 anywhere in the state finance infrastructure upgrades needed to attract future business.
“We welcome these additional jobs to Henderson County,” said Senator Timothy D. Moffitt. “This expansion is a strong vote of confidence for our region, and we appreciate the innovation and economic competitiveness that this company adds to our community.”
“This additional $100 million investment is more than money. It’s a commitment to the people of Henderson County,” said Representative Jake Johnson. “BorgWarner has been a tremendous corporate partner, and we’re thankful for all the collaboration that helped them with this next phase of growth.”
In addition to the North Carolina Department of Commerce and the Economic Development Partnership of North Carolina, other key partners in this project include the North Carolina General Assembly, N.C. Commerce’s Divisions of Workforce Solutions and Rural Economic Development, the Rural Infrastructure Authority, the North Carolina Community College System, Blue Ridge Community College, Duke Energy, Henderson County, the Henderson County Partnership for Economic Development, and the City of Hendersonville.