NC: Excavator Co. Deere-Hitachi Investing $97M, Hiring 340 in Kernersville
9 Oct, 2012
Gov. Bev Perdue announced that Deere-Hitachi Construction Machinery Corporation, one of the largest manufacturers and distributors of excavators in the Americas, will expand its operations in Kernersville. The company plans to create at least 340 jobs by the end of 2016, and invest more than $97 million in its Forsyth County facility. The project was made possible in part by state grants from the Job Development Investment Grant and the One North Carolina Fund.
“Companies like Deere-Hitachi recognize that North Carolina is a great place to thrive because of our top-notch business climate, incredibly well-trained workforce, and central location with access to customers and transportation channels,” said Gov. Perdue. “When the company was ready to expand, North Carolina was the perfect choice.”
Deere-Hitachi is a 50/50 joint venture between John Deere located in Moline, Ill. and Hitachi Construction Machinery Corporation in Tokyo, Japan. The company was established in 1988 to provide both Hitachi and Deere brand excavators to the Americans. As part of Gov. Perdue’s most recent visit to Japan, she met with executives at Hitachi to discuss its current presence in North Carolina and opportunities for it to grow.
At the Kernersville location, the company has integrated its design and support functions, as well as manufacturing, information systems and training and support programs, enabling Deere-Hitachi to provide more value to customers.
“This investment will have a significant positive impact on the State of North Carolina, providing additional employment opportunities for Deere-Hitachi as well as many of our North Carolina-based suppliers,” noted, Al Seeba, Chairman and CEO of Deere-Hitachi. “Deere-Hitachi has been manufacturing in the state since 1988, and we are pleased to partner with state and local officials to help make our vision a reality.”
The expanded Kernersville facility will enable the company to manufacture additional excavators for the mining and construction industries, as well as keep up with demand for the 47-metric ton machine. In addition to the 743 Deere-Hitachi employees in Forsyth County, the company has operations in Canada and Brazil.
Compensation will vary by job function, but the average compensation for the new positions is expected to be $42,102 plus benefits. The average annual wage in Forsyth County is $42,588.
To help facilitate this location, the company has been awarded a grant of up to $510,000 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.
Today, the state Economic Investment Committee voted to award a Job Development Investment Grant (JDIG) to Deere-Hitachi. 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 65 percent of the state personal income withholding taxes derived from the creation of new jobs for each of the nine years in which the company meets annual performance targets. If Deere-Hitachi meets the targets called for under the agreement and sustains them for nine years, the JDIG could yield as much as $3.5 million in maximum benefits for the company.
In addition, up to $877,000 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, N.C. Ports, N.C. Department of Transportation, Forsyth County, Town of Kernersville, Winston-Salem Chamber of Commerce, Forsyth Tech Community College, Duke Energy, Golden LEAF Foundation and the Norfolk Southern Railroad.
For more information about Deere-Hitachi including job opportunities, visit www.dhkernersville.com.