Business

Mack trucking 500 jobs into Greensboro

Posted August 14, 2008 9:56 a.m. EDT
Updated August 14, 2008 10:24 a.m. EDT

— Mack Trucks Inc., one of North America’s largest producers of heavy-duty trucks, plans to move its headquarters and some support functions to Greensboro in the next three years, creating 493 jobs, officials said Thursday.

The move unites Mack with Volvo Trucks North America, which already is based in Greensboro. Both companies are members of the Sweden-based Volvo Group, the world’s second-largest producer of heavy-duty trucks.

Mack has been based in Allentown, Pa., and support functions like information technology, parts logistics, product development and purchasing that serve both Mack and Volvo Trucks are located there as well. The move to North Carolina is designed to boost the competitiveness of the two companies by improving the efficiency, officials said.

“The city of Greensboro and the state of North Carolina have been great partners to the Volvo Group for a number of years,” Mack President and Chief Executive Dennis R. Slagle said in a statement. “Mack looks forward to continuing that partnership and making a positive contribution to the area’s economy and community.”

Mack expects to invest $17.7 million in its Greensboro location, and the move is expected to be completed by the end of 2010. The average annual salary of the new jobs is expected to be more than $73,800, not including benefits.

Guilford County's average salary is $37,700.

The state agreed to refund up to $8.5 million in employee withholding taxes to Mack if it creates the promised 493 jobs and retains them for at least nine years, officials said.