Rowan County approves incentives deal that could retain jobs, bring 28 more
Published 12:05 am Tuesday, June 20, 2017
By Josh Bergeron
SALISBURY — The Rowan County Board of Commissioners on Monday approved a tax incentives deal that could convince a company to keep 28 jobs in the area and add 28 more.
The commissioners approved a five-year tax incentives deal for Premtec, which is in Whitney Industrial Park near the intersection of Grace Church, Camp and Roseman roads.
The incentives deal will rebate 75 percent of the company’s taxes on new investment, which totals $1.16 million. The investment will generate $7,672 in new tax revenue for Rowan County. For five years, however, the incentives deal would provide the company with an annual rebate of $5,754.
During the five years of the agreement, the county would receive $9,590 in net revenue. Over 10 years, the county would receive an estimated $47,948 in new revenue.
The incentives agreement comes as one of Premtec’s parent companies is consolidating operations in some of its U.S. locations to reduce costs, according to RowanWORKS Economic Development. If Rowan County is chosen as a site where jobs are consolidated, the current 28 jobs would stay in the county and 28 new jobs would move to the facility.
During Monday’s meeting, commissioners Chairman Greg Edds put the inventives deal into perspective by saying the total amount of tax revenue rebated would break down to about $513 per job.
“We’ll do that all day long,” he said. “That’s a great deal for the county.”
Duke Energy has also pledged a one-time amount of $5,500 to the project through its own incentives fund, said Scott Shelton, RowanWORKS vice president of operations.
The 28 jobs brought to Rowan County would pay an average annual wage of $33,528, with benefits, according to RowanWORKS. A “vast majority” of the 28 new employees would be local residents, according to the presentation prepared by RowanWORKS.
Asked by commissioners on Monday, a representative of Premtec said the company would offer the same product with more options if Rowan County is chosen for consolidation. Shelton said Premtec and its parent companies are considering other sites, too.
Premtec was founded in 1974 as Carolina Rubber Hose Co. In its earlier years, it produced rubber components for the textile industry. Later, it added industrial hoses and airbrake hoses. It was acquired in 2009 by New York Airbrake.
Because of increased production, the company moved from Lentz Road in China Grove to a larger facility in 2015. Now, Premtec is at 985 Whitney Drive, which is just south of the Salisbury city limits.
Contact reporter Josh Bergeron at 704-797-4246.