Gov. Bev Perdue announced today that Herbalife, a NYSE-listed company that manufactures and markets nutrition products, will establish a manufacturing facility in Winston-Salem. The company plans to create 493 jobs over the next three years and invest approximately $130 million in the purchase and complete retro-fitting of an existing facility, to include the machinery and technology to create a world-class manufacturing facility which is in full compliance with U.S. Good Manufacturing Practices (cGMPs) for dietary supplements and food products. The project was made possible in part by state grants from the Job Development Investment Grant and the One North Carolina Fund award.
“North Carolina continues to be a top choice for companies looking to establish advanced manufacturing facilities,” said Gov. Perdue. “We know we have a strong business climate and the skilled workforce that Herbalife needs to grow and flourish in North Carolina.”
Founded in 1980 in California, Herbalife is a global nutrition company that provides products to help people pursue a healthy, active life. The company’s nutrition, weight-management and personal care products are available exclusively through independent distributors in more than 80 countries.
“Herbalife is thankful to Gov. Perdue, who played a key role in our decision to locate our operations in North Carolina, as well as all those involved from the North Carolina Department of Commerce, the Forsyth County Board of Commissioners, the Winston-Salem City Council and various business development groups,” said Rich Goudis, chief operating officer. “Herbalife is excited about the opportunities this new facility offers to both our business and the local economy.”
Herbalife, with net sales of $3.5 billion in 2011, is growing rapidly. The company plans to produce a wide range of its nutrition products at the new Winston-Salem operations, which will be Herbalife’s largest owned manufacturing facility.
Compensation will vary by job function, but the average annual payroll will be more than $19.8 million, plus benefits. The Forsyth County average wage is $42,588.
To help facilitate this expansion, the company has been awarded a grant of up to $1,000,000 from the state’s One North Carolina Fund. This fund assists the state in industry recruitment and expansion by providing financial assistance through local governments 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.
“Herbalife could have located anywhere, but their choice of North Carolina demonstrates the competitive advantage our state offers companies,” said Sen. Peter Brunstetter.
In addition, the state Economic Investment Committee voted today to award a Job Development Investment Grant to Herbalife. 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 JDIG, the company is eligible to receive a grant equal to 70 percent of the state personal income withholding taxes derived from the creation of new jobs for each of the 11 years in which the company meets annual performance targets. If Herbalife meets the targets called for under the agreement and sustains them for 11 years, the JDIG could yield as much as $5.55 million in maximum benefits for the company.
In addition, up to $1.8 million could be added to the state’s Utility Fund for infrastructure improvements in economically distressed counties. When a JDIG is awarded in the state’s more economically prosperous counties such as Forsyth, 25 percent of the grant is allocated to the Utility Fund to encourage economic development in less prosperous counties.
Other partners who assisted with this announcement include: The N.C. Department of Commerce, N.C. Community Colleges, Forsyth County, City of Winston-Salem, Winston-Salem Business, Inc., Winston-Salem Alliance and Duke Energy.
For more information about Herbalife, visit www.herbalife.com.