Klausner Lumber Two, an Austrian-based softwood timber manufacturer, will invest $110 million to establish a state-of-the-art sawmill in Halifax County, North Carolina, creating 350 jobs over the next three years.
The proposed Enfield, North Carolina mill will produce construction quality lumber and structural timber for domestic and world markets. The company produces custom-sized rough and planed lumber products that are used in the construction, pressure-treating, secondary processing, furniture and packaging industries.
The project was made possible in part by state grants from the Job Development Investment Grant and the One North Carolina Fund, Gov. Bev Perdue said. “Creating jobs is my top priority and the fact that globally competitive companies continue to make investments like this in North Carolina proves that our history of investing in education and job creation has paid off,” Gov. Perdue said. “Our highly skilled and knowledgeable workforce will serve Klausner’s high-tech advanced manufacturing needs well.”
As an incentive to facilitate this project, the company has been awarded a grant of up to $750,000 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.
“This is a great economic development project for Halifax County,” said James Pierce, chair of the Halifax Board of Commissioners.“Klausner will find the skilled workforce they need to thrive and succeed here in North Carolina.”
In addition, the state Economic Investment Committee awarded a Job Development Investment Grant to Klausner Lumber. 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 eleven years in which the company meets annual performance targets. If Klausner Lumber meets the targets called for under the agreement and sustains them for eleven years, the JDIG could yield as much as $3.91 million in maximum benefits for the company.