Egger Wood Products Starts Construction on Linwood, North Carolina Headquarters-Manufacturing Hub
The company expects to start construction on its manufacturing plant by the end of the year and on its particleboard facility in 2020.
According to Governor Roy Cooper’s Office, the company’s development plans include creating 770 jobs over the next 15 years with a proposed $700 million investment. The first phase, creating 400 jobs, will happen over the next six years, and an additional 370 jobs are planned for later phases of the project.
“Furniture manufacturing is part of North Carolina’s legacy, and our top-flight workforce gives EGGER an edge as they enter the U.S. marketplace,” said Governor Cooper. “North Carolina offers international manufacturing companies everything they need to succeed, including strong infrastructure, proximity to suppliers and customers, and skilled workers.”
The facility in North Carolina will be a state-of the-art particleboard manufacturing plant and EGGER’s first U.S. manufacturing operation, state officials said. The facility will contribute to the regional economy by purchasing wood byproducts from sawmills and working with a range of local suppliers for additional services.
“Having our own production facility in North America is vital for EGGER to tap into the market and become a significant player for the growing demand in the U.S. for wood-based materials,” said Walter Schiegl, EGGER Chief Technology Officer and member of the executive board when the project was first announced.
“Our sales activities in the U.S. have already proved our product range is highly attractive for architects, designers, wholesalers and industry customers. With the Davidson County production site, we will be able to enhance our customer relationships, ensuring product availability and speed of delivery. Our goal is to position ourselves as the leading brand for wood-based solutions in the U.S., as we are already in Europe,” he added.
EGGER’s expansion in Davidson County will be facilitated, in part, by a Job Development Investment Grant approved by the state’s Economic Investment Committee.
Over the course of the 12-year term of this grant, the project will grow the state’s economy by an estimated $1 billion. Using a formula that takes into account the new tax revenues generated by the new jobs, the JDIG agreement authorizes the potential reimbursement to the company of up to $5.3 million, spread over 12 years.
State payments only occur following performance verification by N.C. Commerce and N.C. Revenue that the company has met its incremental job creation and investment targets. JDIG projects result in positive net tax revenue to the state treasury, even after taking into consideration the grant’s reimbursement payments to a given company.
The project was also made possible by a performance-based grant from the One North Carolina fund of up to $2.5 million. The One NC Fund provides financial assistance, through local governments, to attract business projects that will stimulate economic activity and create new jobs in the state. Companies receive no money up front and must meet job creation and investment performance standards to qualify for grant funds. One NC grants also require and are contingent on financial matches from local governments.
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