Gov. Mike Easley announced that Sypris Technologies Inc., a wholly owned subsidiary of Louisville-based Sypris Solutions Inc. that makes components for truck axles, will invest $25.4 million to expand its manufacturing facility in Burke County and add 203 jobs by the end of 2013. The project was made possible in part by a Job Development Investment Grant.
“At a time when the automotive industry is struggling nationally, we are pleased to have good news to announce here in North Carolina,” Easley said. “Our commitment to economic development and our top-ranked business climate continues to bring good-paying, high-skilled jobs for North Carolina families.”
Sypris Technologies manufactures a variety of forged, machined and welded components used in the assembly of axles for light, medium and heavy duty trucks. The company currently employs 166 workers at its Morganton plant. The additional 203 jobs will pay an average annual salary of $33,900, not including benefits, which is greater than the Caldwell County average of $29,744.
“This is a pivotal period for all companies in the automotive industry,” said Sypris Technologies President Sergio de Carvalho. “Consolidating certain areas of our operations under one roof in Morganton will improve our competitiveness and the Morganton facility will become a major hub for our North American operations.”
The state’s Economic Investment Committee voted unanimously today to award a Job Development Investment Grant to Sypris Technologies to facilitate this project. This is the 84th JDIG award announced since Easley and the General Assembly started the program in 2002, and the 14th awarded this year.
For each year in which the company meets the required performance targets, the state will provide a grant equal to 65 percentof the state personal income withholding taxes derived from the creation of new jobs. Should the company create the jobs called for under the agreement and sustain them for 10 years, the agreement could yield as much as $2 million in maximum benefits for Sypris Technologies.
Job Development Investment Grants 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. Since the first grant was awarded in 2003, the program has been responsible for the commitment of more than 30,000 jobs and $5 billion in investment in North Carolina.
Other partners who assisted with this announcement include: the N.C. Department of Commerce, Western Piedmont Community College, Burke County, the City of Morganton and the Burke Partnership for Economic Development.