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Gov. Perdue Announces 363 jobs with Linamar
Story Date: 7/1/2011
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Source: PRESS RELEASE, 6/30/11
Gov. Bev Perdue announced today that Linamar Corporation, a leading supplier of engine, transmission and driveline components, will locate its newest manufacturing facility in Asheville, to supply precision machined components for customers of Linamar’s Industrial, Commercial and Energy Group.
The project was made possible in part by state grants from the Job Development Investment Grant and One North Carolina Grant programs. To meet the targets established in these performance-based grants, the company plans to create 363 jobs over four years beginning in 2012 and make a capital investment of $80 million in Asheville. The company indicates that if the market performs as expected, the project could actually realize as many as 400 jobs and an additional $45 million in capital investment by 2020.
“The fact that corporations continue to bring these kinds of projects to North Carolina proves that our investment in North Carolina is paying off,” Gov. Perdue said. “Our job-ready workforce and access to major highways will bring to our state the kind of jobs that are helping us climb out of the recession.”
Headquartered in Guelph, Ontario, Canada, Linamar Corporation is a world-class designer and diversified manufacturer of precision metallic components and systems for the automotive, energy and mobile industrial markets. Building on a foundation of over 45 years of successful growth, it is a leading supplier of engine, transmission and driveline, modules and systems and mobile aerial work platforms. The plant in Asheville will produce items like cylinder blocks, gears and driveline parts for the heavy duty industry
While individual wages for the 363 jobs will vary by job function, the overall average for the new jobs will be $39,931 a year, not including benefits. The Buncombe County average annual wage is $33,800.
"We look forward to becoming a member of the Asheville community, and we thank Governor Perdue, Buncombe County and City of Asheville officials who worked hard to help us create a plan that makes this facility possible,” said Linamar CEO Linda Hasenfratz. “The Asheville facility will add capacity in our growing heavy duty and energy businesses, and give us manufacturing capabilities in an important region central to many of our customers."
To help facilitate this expansion, the company has been awarded a $200,000 grant from the state’s One North Carolina Fund. This fund provides cash grants to attract business projects deemed by the governor to be vital to a healthy and growing state economy. No money is paid up front and companies must meet job creation and investment targets to receive payments. One North Carolina Fund grants also require a local match, and this grant is contingent upon approval of local incentives.
Also, the state Economic Investment Committee today voted to award a Job Development Investment Grant to Linamar. JDIGs are awarded only to new and expanding businesses and industrial projects whose benefits exceed the costs to the state and which would not be undertaken in North Carolina without the grant.
Under the terms of the JDIG, the company is eligible to receive a grant equal to 60 percent of the state personal income withholding taxes derived from the creation of new jobs for each of the nine years in which the company meets annual performance targets. If Linamar meets the targets called for under the agreement, the JDIG could yield $2.5 million in maximum benefits for the company.
In addition, up to $840,000 could be added to the state’s Industrial Development Fund for infrastructure improvements in economically distressed counties. When a JDIG is awarded in the state’s more economically prosperous counties such as Buncombe, 25 percent of the grant award is allocated to the Industrial Development Fund to encourage economic development in less prosperous counties.
Other partners that assisted with this project include: the N.C. Department of Commerce, N.C. Community Colleges, the City of Asheville, Buncombe County, the Asheville Area Chamber of Commerce, the Economic Development Coalition for Asheville-Buncombe County and Progress Energy.
Through Gov. Perdue’s JobsNOW initiative, the state continues to work aggressively to create well-paying jobs, train and retrain its workforce, and lay the foundation for a strong and sustainable economic future.
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