Gov. Bev Perdue today announced that Siemens Energy Inc., an international supplier of products and services for the generation, transmission and distribution of power, will expand its gas turbine operations in Mecklenburg County. The company plans to add 825 jobs and invest at least $135 million over the next five years. The announcement was made possible in part by state grants from the Job Development Investment Grant program and One North Carolina Fund.
“Creating jobs is my No. 1 priority and this expansion of hundreds of well-paying jobs for North Carolinians is a big win,” said Gov. Perdue. “Our knowledge-based workforce and our top business climate continue to be attractive to globally-competitive companies looking to expand and locate.”
Siemens Energy, a wholly owned subsidiary of Siemens AG (NYSE: SI), covers the entire conversion chain from fuel production to power distribution. This approach allows the company to focus on future-oriented, innovative, and efficient products and solutions to meet the increasing demand for cleaner, more efficient energy production.
Siemens plans to expand its Westinghouse Boulevard campus and relocate gas turbine manufacturing operations from a plant in Ontario, Canada. The company also previously announced plans to add additional office space for new engineers in Charlotte as it creates a global production hub for manufacturing and related functions for the supply of its gas and steam turbines and generators to markets around the world.
The overall average wage for the 825 new jobs will be almost $64,000 a year, not including benefits. That is higher than the Mecklenburg County average of $48,776. The company currently employs 777 workers at the Charlotte site, and more than 60,000 in the United States.
“The U.S. is Siemens’ largest market, and this latest strategic business decision further emphasizes our commitment to expand and continue to invest in our U.S. presence. We already supply the power systems that provide one third of the nation’s electricity, and through this expansion in Charlotte, we will be able to continue bringing efficient and competitive power-generation options to customers around the world,” said Michael Suess, CEO of Siemens Energy’s Fossil Power Generation Division. “We’ve had a presence in the Charlotte area and in other areas in North Carolina for decades, and it was our first-hand knowledge of the excellent business environment here that convinced us to expand our investment further. We owe many thanks to the State of North Carolina for its ongoing dedication to our business success.”
Other partners who assisted with this project include: the N.C. departments of Commerce and Transportation, N.C. Community Colleges, the City of Charlotte, Mecklenburg County, N.C. Employment Security Commission, Charlotte Chamber, Norfolk Southern and Duke Energy.
“Even during these tough economic times, Charlotte continues to attract new jobs to the area because of our tremendous workforce and business climate,” said Sen. Charlie Dannelly.
“Our top-notch workforce continues to attract global companies that are looking to invest in and expand their operations in North Carolina. We welcome these new jobs to Charlotte,” said Rep. Kelly Alexander.
To help facilitate this expansion, Siemens Energy has been awarded a $1 million grant from the state’s One North Carolina Fund. This fund assists the state in industry recruitment and expansion by providing financial assistance to attract business projects deemed by the governor to be vital to a healthy and growing state economy. One North Carolina Fund grants require a local match, and this grant is contingent upon approval of local incentives.
In addition, the state Economic Investment Committee today voted to award a Job Development Investment Grant to the company. 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, Siemens is eligible to receive a grant equal to 75 percent of the state personal income withholding taxes derived from the creation of new jobs for each of the 12 years in which the company meets annual performance targets. If Siemens meets the targets called for under the agreement and sustains them for 12 years, the JDIG could yield as much as $21.75 million in maximum benefits for the company.
In addition, up to $7.3 million 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 Mecklenburg, 25 percent of the grant award is allocated to the Industrial Development Fund to encourage economic development in less prosperous counties.
For more information about Siemens Energy Inc., including job opportunities, visit www.energy.siemens.com/.