By Jessie Burchette
jburchette@salisburypost.com
Two companies looking to locate in Rowan County could bring some jobs in the next three months.
The Rowan County Board of Commissioners unanimously approved incentive packages for the two companies Monday night and urged the companies to bring their investment and jobs here.
Sustainable Textile Group is looking at a $10 million investment in the former Hanesbrands facility at 308 E. Thom St. in China Grove.
A subsidiary of Strateline Industries based in Arkansas, the company uses a patented process to produce non-woven fabrics.
The company proposes to create 223 new jobs paying an average of $29,100 per year.
The company is also expected to be a major water user, which could be good news for the town of China Grove.
Commissioners had to delay the public hearing for a couple of hours to accommodate company officials caught in a flight delay from Arkansas.
Once the hearing started, commissioners liked what they heard from Luke Terrell, a company official. Terrell said the company wants to tap into the textile workforce in the area. “We will use as many former employees as possible. It’s to our benefit,” he said.
“It’s our intention to hire all 223 employees locally,” Terrell said.
If the project lands in China Grove, the company could start hiring by July.
Commissioners Chairman Carl Ford marveled at the fact the company will use some of the same equipment left by Hanesbrand in the new venture.
Salisbury-Rowan Economic Development Commission Executive Director Robert Van Geons and Terrell stressed the final decision involves the county incentives as well as China Grove and various state incentives and assistance. They also cited the assistance of Duke Energy.
China Grove will hold a public hearing this evening on incentives for the company.
Commissioners agreed to rebate 75 percent of the taxes paid for five years beginning in 2010-2011 fiscal year. According to Economic Development Commission figures, the company would pay an estimated $277,151 in new taxes over those five years and the county would rebate $207,863. The county would also receive a little more than $13,000 annually in tax revenue on retained equipment, which would not be subject to the incentive agreement.
Commissioners also lauded the expansion of Henkel at 485 Cedar Springs Road, part of the larger facility formerly known as National Starch.
Henkel, which manufactures specialized adhesives, is considering investing approximately $23 million in new buildings, site improvements and equipment and creating an estimated 103 new jobs paying an average wage exceeding $54,000 per year.
The project would also retain 81 existing jobs.
Van Geons said Henkel is looking to combine six of of its operations at two sites and the Salisbury site is one of the two.
Several top officials at the local Henkel plant attended the meeting.
Nancy C. Lee, manager of the local plant, said the company wants to move forward quickly, and could start hiring some construction workers in June.
Responding to questions, Lee said the company would like to grow the Henkel operation here.
“It’s absolutely in our vision,” Lee said. “We want to grow it and will use the entire 50 acres.”
Commissioner Tina Hall questioned how many of the new employees will come from Rowan County.
Lee said the company hopes to fill the jobs with Rowan residents. “We’re local. We’re absolutely committed to stay here,” she said.
Lee and Van Geons said Rowan-Cabarrus Community College will assist with training for the new jobs.
The project qualifies for the same five year, 75 percent incentive grant..
Under the incentive plan approved by commissioners, Henkel would pay an estimated $122,000 annually in taxes and get a rebate of $91,000 with the county retaining $30,000.
The Salisbury City Council will consider a similar incentive policy at its meeting this evening.
State incentives will also be a key factor in the final decision.
Contact Jessie Burchette at 704-797-4254.