NC: United Technologies Corporation Expands in Charlotte, Creates 325 Jobs
14 Jun, 2012
Gov. Bev Perdue announced today that United Technologies Corporation, a global leader in the research, development and manufacture of high-technology products, will expand its presence in Charlotte. The company plans to create 325 UTC jobs over the next five years and invest at least $4 million. The project was made possible in part by state grants from the Job Development Investment Grant and the One North Carolina Fund award.
“Creating jobs is my top priority,” said Gov. Perdue. “We do that by attracting new companies to North Carolina and by helping companies that already call North Carolina home to expand. We know we have the skilled workforce and first rate business climate that United Technologies needs to thrive and grow in North Carolina.”
United Technologies, one of the world’s largest and most successful companies, provides an array of products and services to the global aerospace and building systems industries. Products include military and commercial helicopters, aircraft engines and aerospace systems, heating, refrigeration and air conditioning systems, fire and security systems, and elevators and escalators. UTC’s business units include Otis Elevator Co., Sikorsky Aircraft, Pratt & Whitney, Hamilton Sundstrand and UTC Climate, Controls and Security, which includes Carrier Corp.
United Technologies currently employs more than 1,500 people in 13 separate sites throughout North Carolina. The company is in the process of acquiring Goodrich Corporation, a global aerospace manufacturer with corporate headquarters in Charlotte. After the completion of the acquisition, which is still subject to regulatory approval, the headquarters for United Technologies’ UTC Aerospace Systems business will be in Charlotte. UTC Aerospace Systems will be comprised of two segments. They are Aircraft Systems, which will focus on such products as propellers, landing gear, wheels and brakes; and Power, Controls and Sensing Systems, which will focus on such products as aircraft electric systems, engine components and fire protection systems. Each segment at the new Charlotte facility will include functions such as engineering, operations, supply chain, quality control, customer service, sales and business development.
Salaries will vary by job function but the average annual compensation for a majority of the positions will exceed $100,000. The Mecklenburg County average annual wage is $51,792.
“UTC is extremely pleased to be expanding its footprint in North Carolina with the leadership team for its Aerospace Systems business,” said Alain M. Bellemare, President and Chief Operating Officer of UTC Propulsion and Aerospace Systems. “With the continued growth of global air travel, Charlotte will serve as a strategic center point for our operations as we position the company to meet this demand.”
To help facilitate this expansion, the company has been awarded a grant of up to $2.5 million 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.
In addition, the state Economic Investment Committee voted today to award a Job Development Investment Grant (JDIG) to United Technologies. 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 75 percent of the state personal income withholding taxes derived from the creation of new jobs for each of the 12 years in which the company meets annual performance targets. If United Technologies meets the targets called for under the agreement and sustains them for 12 years, the JDIG could yield as much as $16.5 million in maximum benefit for the company.
In addition, up to $5.5 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 Mecklenburg, 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, Mecklenburg County, City of Charlotte and Charlotte Chamber.