Herbalife Expands Manufacturing-IT Operations In Winston-Salem, North Carolina
According to state officials, this latest project is in addition to the 500 jobs that will have been created by the end of 2015. The company also plans to invest an additional $3.5 million into infrastructure and development by the end of next year.
Herbalife currently employs 404 people in Forsyth County who produce a wide range of Herbalife’s nutrition and weight-management products. The company plans to further expand its manufacturing operations in Winston-Salem, as well as establish a significant global corporate IT presence. The new jobs will include production staff and information technology staff.
“Our newest and largest facility in Winston-Salem is integral to our global growth and we are excited to be embarking on this next phase of investment,” said David Pezzullo, Herbalife’s Executive Vice President, worldwide operations. “We are grateful to Governor McCrory and to all those who supported this decision, enabling us to expand our operations in Winston-Salem and make this additional investment in jobs and infrastructure.”
The project was made possible in part by an award to Herbalife Ltd. from the state Job Development Investment Grant program, as voted by the state Economic Investment Committee. Receipt of the award is based on proof of job creation and other performance requirements. 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 reimbursement.
Under the terms of the company’s JDIG, Herbalife Ltd. is eligible to receive up to twelve annual reimbursement payments equal to 41 percent of the state personal income tax with-holdings from the eligible new jobs created since the date of the initial award. Receipt of each annual reimbursement is based on state-certified proof that the company has fulfilled incremental job creation requirements. Over twelve years, the JDIG award could yield aggregate benefits to Herbalife Ltd. of nearly $3 million upon the creation of 301 jobs.
Herbalife received a JDIG in December of 2012 and is currently in its third year of successful job ramp ups in order to meet the 500 jobs performance criteria to be reimbursed.
Nearly $1 million in additional funds from the company’s JDIG award could be added to the state’s Utility Fund for infrastructure improvements in economically distressed counties. When a JDIG is awarded to a company whose site is located in the state’s more economically prosperous counties such as Forsyth, a percentage of the company’s grant is allocated to the Utility Fund to encourage economic development in less prosperous counties.
“Herbalife is nearly doubling its workforce and its commitment to North Carolina,” said Governor McCrory. “These new jobs will be a boost to the Piedmont Triad region.”
“This is yet another example of the state’s performance-based incentives helping a local manufacturer expand,” said North Carolina Commerce Secretary John E. Skvarla, III. “We continue to grow jobs on the home-front with existing business. Nothing compares to North Carolina and any decision to grow here is an easy one.”
In addition to the N.C. Commerce and the Economic Development Partnership of N.C., other partners that helped with this project include North Carolina Community College System, Forsyth Technical Community College, Winston-Salem Chamber of Commerce, Forsyth County and the City of Winston-Salem and Winston Salem Business, Inc.
Supply Chain Bottlenecks Creating New “Logistical Hotspots”
2020 Top States for Doing Business Showcase Their Pro-Business Environments
2021 Gold & Silver Shovel Awards Recognize State and Local Economic Development Efforts
35th Annual Corporate Survey: Effects of Global Pandemic Reflected in Executives’ Site and Facility Plans
Latest Trends in the Industrial Real Estate Sector Here to Stay
Auto Industry Is Betting on Sustainability
2021 Auto/Aero Site Guide