Free Daily Headlines

News

Set your text size: A A A

City lands almost 200 jobs paying $79,000/year

BorgWarner, a U.S.-based mobility solutions company operating 84 manufacturing and technical locations globally, will further expand its operations in the city of Hendersonville and Henderson County.

A legacy employer in Western North Carolina, the corporation is establishing a 220,000-square-foot building at Blue Ridge Commerce Center off McMurray Road.

“BorgWarner is proud to continue to invest in the state of North Carolina to bring an exciting new technology to market and provide jobs to local residents,” said Joseph F. Fadool, president and chief executive officer, BorgWarner Inc. “We appreciate the grant and continued support from the state of North Carolina to expand our manufacturing footprint here in the United States.”

“This project is a testament to the dedication we have seen from the city and the county over the last several years,” said John Bryant, chair of the Henderson County Partnership for Economic Development.  "By working together, we’ve built a thriving industrial corridor along Upward Road, that allows for companies such as BorgWarner to invest and create high paying jobs for our friends and neighbors. Economic development serves as a unifying force within our community, and BorgWarner is an ideal employer for our community.” 

The company is expected to create 193 jobs over five years with an annual average salary for the new positions expected to be $78,628. The company will invest a minimum of $74.9 million to build an advanced manufacturing facility.

“We have long said that manufacturing is crucial to the quality of life in our community. Following the devastation of Hurricane Helene, this project is especially meaningful as we work to ensure our community’s long-term resilience. We gladly welcome BorgWarner back to Henderson County,”  said Bill Lapsley, chair of the Henderson County Commissioners.

The Hendersonville facility will be an advanced manufacturing site for a new industrial product. This investment will support the first tranche of production volumes in North Carolina.

“The city has strategically grown its manufacturing base the past few years, with a focus on sustainability and advanced industries," Mayor Barbara Volk said. "It is exciting to see facilities like this locating here and positioning Hendersonville on the cutting edge of clean energy and advanced manufacturing.”

Leaders statewide touted the announcement as a victory for jobs recruiting.

“I am pleased that BorgWarner will deepen its roots in western North Carolina,” Gov. Josh Stein said. “This decision reaffirms our ranking as the best state to do business, highlights our thriving automotive industry, and invests in our manufacturing economy in western North Carolina at a time when it’s sorely needed.” 

Headquartered in Auburn Hills, Michigan, BorgWarner supplies leading technologies and systems solutions to every major automotive Original Equipment Manufacturer in the world. For more than 130 years, BorgWarner has been a transformative global product leader bringing successful mobility innovation to market. The new 220,000-square-foot manufacturing site will be the company’s second North Carolina facility, adding to its portfolio of 84 manufacturing and technical center locations worldwide. 

“BorgWarner could have chosen anywhere in the world for this new product line, but they chose to reinvest in North Carolina,” said N.C. Commerce Secretary Lee Lilley. “Western North Carolina is recovering stronger every day, and companies looking to grow want to do so in places like Henderson County, where there is access to a strong talent pool, a solid supply chain, and an excellent quality of life.”

While wages vary by position, the annual average salary for the new positions is expected to be $78,628. The average wage in Henderson County is $51,565. The new jobs could create an annual payroll impact of more than $15 million for the region. 

BorgWarner’s expansion in North Carolina will be facilitated, in part, by a Job Development Investment Grant (JDIG) awarded to BorgWarner Industrial Solutions LLC; the grant was approved by the state’s Economic Investment Committee earlier today. Over the course of the 12-year term of this grant, the project is estimated to grow the state’s economy by $583 million.

Using a formula that takes into account the new tax revenues generated by the new jobs and the capital investment, the JDIG agreement authorizes the potential reimbursement to the company of up to $1,786,500, spread over 12 years. State payments occur only following performance verification by the departments of Commerce and Revenue that the company has met its incremental job creation and investment targets. 

The project’s projected return on investment of public dollars is 74 percent, meaning for every dollar of potential cost to the state, the state receives $1.74 in revenue. 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. Because BorgWarner chose to locate to Henderson County, classified by the state’s economic tier system as Tier 3, the company’s JDIG agreement also calls for moving $595,500 into the state’s Industrial Development Fund – Utility Account. The Utility Account helps rural communities finance necessary infrastructure upgrades to attract future business. Even when new jobs are created in a Tier 3 county such as Henderson, the new tax revenue generated through JDIG grants helps more economically challenged communities elsewhere in the state. 

The recruitment was a joint effort of the Henderson County Partnership for Economic Development, Henderson County, the city of Hendersonville, North Carolina Department of Commerce, Economic Development Partnership of North Carolina, North Carolina Community College System and Blue Ridge Community College and Duke Energy. The county Board of Commissioners and Hendersonville City Council both granted property tax refunds in order to attract the investment.