Gov. Bev Perdue today announced brake systems and components manufacturer Continental Teves will expand its operations in Henderson County. The company, a wholly owned subsidiary of global automotive supplier Continental, plans to invest $30.1 million and create 338 jobs in Fletcher during the next five years.
“North Carolina ranks 10th nationally in automotive-related jobs thanks to the commitment of such international leaders as Continental and its subsidiary in our state,” Gov. Perdue said. “Established companies continue to grow here because they know the value of our top business climate and skilled workforce.”
Continental has its North American headquarters in Michigan and operates two facilities in North Carolina. The Fletcher manufacturing plant currently employs 288 workers, while a plant in Morganton has 367 employees. The overall average wage for the 338 new jobs in Fletcher is expected to be $36,179, not counting benefits, which is higher than the Henderson County average of $31, 252.
Continental Teves is part of German giant Continental AG, often referred to by the nickname “Conti.” N.C. Department of Commerce Secretary Keith Crisco met with Conti officials during a visit to Germany as part of the department’s European economic trip in June. Fletcher plant manager Bobby Nelon also attended that meeting.
Nelon said there were several factors that led Continental to choose Fletcher as the best place to expand. “The employees in the Henderson facility today make a strong foundation for growing the plant,” Nelon said. “The incentive package also was a major determining factor in selecting the Henderson plant for the expansion. This is a great situation of government and business working together to secure jobs in North Carolina.”
The state Economic Investment Committee met this morning to award a Job Development Investment Grant to Continental Teves to facilitate this expansion.
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 nine years in which the company meets annual performance targets. If the company creates the jobs, makes the investment and pay the wages called for under the agreement and sustains them for nine years, the JDIG could yield as much as $2.16 million in maximum benefits for Continental Teves.
In addition, up to $718,500 could be added to the state’s Industrial Development Fund for infrastructure improvements in economically distressed counties. When a JDIG is awarded to one of the state’s more economically prosperous counties such as Henderson, 25 percent of the grant award is allocated to the Industrial Development Fund to encourage economic development in less prosperous counties.
Job Development Investment Grants 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. Since the first grant was awarded in 2003, the program has been responsible for creating commitments for more than 30,000 jobs and $6 billion in investment in North Carolina.
North Carolina continues to have a top ranked business climate. Through Gov. Perdue’s JobsNOW initiative, the state will work aggressively to create jobs, train and retrain our workforce, and lay the foundation for a strong and sustainable economic future.
Other partners that assisted with this announcement include: the N.C. Department of Commerce, Henderson County, the Town of Fletcher, Blue Ridge Community College and the Henderson County Partnership for Economic Development.
For more information about Continental Teves or Continental, visit www.conti-online.com. For information about employment opportunities at the Fletcher manufacturing plant, call the Henderson County office of the N.C. Employment Security Commission at (828) 693-1703.