Ashley Furniture, a manufacturer and distributor of home furnishings, will invest $80 million on a new manufacturing and distribution facility in Davie County, North Carolina, creating 550 new jobs.
Todd R. Wanek, Ashley's President and CEO said, as we see Ashley's global demand for its products increase, Ashley continues to make long-term investments in all of its facilities as well as the continued education of all employees to meet consumer demand. North Carolina's strong furniture manufacturing tradition, along with the cooperation of Governor Bev Perdue, the Department of Commerce and Davie County Economic Development Commission, has made this project possible."
If all the proposed 550 new jobs are created over the next five years the estimated payroll will be $15.5 million, North Carolina Economic Development officials said. The expansion was made possible in part by a state Job Development Investment Grant and a One North Carolina Fund award.
As an incentive to facilitate expansion, the company was awarded a grant of up to $825,000 from the state's One North Carolina Fund. This fund assists the state in business recruitment and expansion.
In addition, the state Economic Investment Committee awarded a Job Development Investment Grant to Ashley. JDIGs are awarded 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 the JDIG, the company is eligible to receive a grant equal to 60 percent of the state personal income withholding taxes derived from the creation of new jobs for each of the 10 years in which the company meets annual performance targets. If Ashley Furniture meets the targets called for under the agreement and sustains them for 10 years, the JDIG could yield as much as $3.19 million in maximum benefits for the company.
"North Carolina continues to attract manufacturers that are drawn to our top-ranked business climate and highly-skilled workers," said Gov. Bev Perdue.
"Ashley looked all over for a home for its new facility and realized, like more and more companies have, that North Carolina's skilled, educated workforce is second to none," said Rep. Julia Howard, of Mocksville.