Stein Announces $100M investment in BorgWarner

On May 26, Gov. Josh Stein announced a $100 million investment in BorgWarner Inc. to expand its Hendersonville location, promising 378 jobs. 

“We congratulate BorgWarner on its new expansion in Henderson County,” said Stein in a press release. “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.”

BorgWarner has been the leader in innovative mobility solutions for every major automotive Original Equipment Manufacturer (OEM) worldwide for over a century, according to the press release. This expansion will add 140,000 sq ft to the Hendersonville location and expand the workforce to 37,500 across 81 facilities. 

“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, in a press release. “We appreciate the grant and continued support from the state of North Carolina to expand our manufacturing footprint here in the United States.” 

Salaries will vary by position; however, the average salary will be $67,047, exceeding the average Henderson County salary of $54,118 by $12,929, according to the press release. Positions will include technicians, production staff, and logistics personnel. If the project hits its targets, these new positions could create an annual payroll impact of more than $25.3 million. 

“Gov. Stein, who objects to lowering the corporate tax rate that applies to all corporations, nevertheless champions targeted tax giveaways to specific corporations,” Brian Balfour, VP of research for the John Locke Foundation, told the Carolina Journal. “Playing political favorites like this is not only bad economics but invites political corruption as corporations lobby to get access to the favoritism. And let us not forget what a poor track record this JDIG program has: More than 80% of completed projects have ended with a failure to meet their stated job goals. It’s long past time for North Carolina to level the playing field and tax all businesses the same, allowing those businesses that most efficiently meet consumer demands to thrive, rather than rewarding those businesses with the most well-connected lobbyists.”

The expansion is being partially funded by a Job Development Investment Grant (JDIG) awarded to BorgWarner Industrial Solutions LLC, which was approved by the North Carolina Department of Commerce’s Economic Investment Committee, according to the press release. The statements claims the project will grow the state’s economy by $1 billion over the 12-year grant period. 

Using a formula that accounts for the new tax revenues generated by job creation and capital investment, the JDIG agreement allows for potential reimbursements to the company totaling up to $3,685,500 over 12 years, according to the press release. These state payments are contingent upon annual verification by the Departments of Commerce and Revenue confirming that the company has achieved its agreed-upon job creation and investment milestones.

Henderson County is a Tier 2 County, under the state’s economic tier system. Tier 1 includes the 40 most distressed counties in the state, with Tier 2 the 40 next most distressed.  

“Stein Announces $100M investment in BorgWarner” was originally published on www.carolinajournal.com.