Italy-Based Grupporeco Establishes Kinston, North Carolina, Factory
Grupporeco’s new subsidiary in Lenoir County, RECO U.S. Inc., will allow product development and manufacturing closer to its U.S. clients, consistently contributing to the development of a stronger local supply chain.
“Grupporeco is pleased to announce the decision to locate our new U.S. plant in Kinston, Lenoir County, North Carolina,” said Grupporeco and RECO US Inc. CEO and President Vincenzo Locatelli. “The COVID pandemic has made this a challenging and time-consuming process, but the support of the authorities and community has been outstanding, and we’re excited to have the project start very soon. The U.S. is a key market for our growth and we look forward to cooperating intensively to make Grupporeco’s arrival a success for our company and the local stakeholders.”
Grupporeco’s expansion will be facilitated, in part, by a Job Development Investment Grant (JDIG) approved by the state’s Economic Investment Committee earlier today. Over the course of the 12-year term of the grant, the project is estimated to grow the state’s economy by more than $339 million. 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 $918,000 spread over 12 years.
State payments only occur following performance verification by the departments of Commerce and 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 average annual salary for the new jobs is $39,854, which is above Lenoir County’s overall average annual wage of $39,839. The new positions are anticipated to bring $4.3 million of annual payroll growth to the region.
“It is positive news that Grupporeco has selected Lenoir County for its first expansion in the United States,” said Governor Roy Cooper. “North Carolina maintains a manufacturing legacy with a highly-skilled workforce combined with our prime East Coast location and robust transportation infrastructure that attracts global companies.”
Grupporeco has been a market leader in engineering and manufacturing household appliance components for nearly 60 years. Headquartered in Italy and based in Italy and Poland, the company produces and distributes coated dishwasher baskets, steel wire and tube components, aluminum tubing and components for major household appliance companies.
“With options all over the world, it gives us great confidence to know that international companies are choosing North Carolina for their global expansion,” said N.C. Commerce Secretary Machelle Baker Sanders. “North Carolina not only has the largest manufacturing workforce in the southeastern United States, but it is also heavily invested in developing workforce systems that create a diverse pipeline of talent for the new and growing companies.”
In addition to the N.C. Department of Commerce and the Economic Development Partnership of North Carolina (EDPNC), other key partners in the project include the North Carolina General Assembly, North Carolina Department of Transportation, North Carolina Community College System, North Carolina Global TransPark Economic Development Region, Lenoir County, Lenoir Committee of 100, North Carolina’s Southeast, Duke Energy, Piedmont Natural Gas and City of Kinston.
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