Dell Computer Plant Coming To Triad
Posted November 9, 2004 10:28 a.m. EST
RALEIGH, N.C. — Gov. Mike Easley announced on Tuesday that
will build a computer manufacturing facility in the Piedmont Triad region, creating at least 1,500 jobs and investing $100 million during the next five years.
"Dell's decision to locate in North Carolina means thousands of jobs are headed to the Piedmont Triad, bringing better benefits and skills to an area hit hard by job loss due to federal trade policies," Easley said. "In addition to providing much needed jobs, the Dell project will provide over $700 million in net revenue over 20 years. This project makes good economic sense for North Carolina at a time when our workers need help the most."
Dell, Inc., a leading manufacturer and distributor of computers and related products, plans to build and equip a state-of-the-art, 400,000-square-foot manufacturing and distribution facility in the Triad.
Dell currently employs about 50,000 workers worldwide and has 16.8 percent of the global market for computers. Its sales during the fiscal year that ended Jan. 31 totaled $41 billion. Dell currently has two U.S. factories in Nashville, Tenn., and Austin, Texas.
"The education system, commitment to businesses and proximity to a large and growing base of Dell customers were important in our decision to expand into North Carolina," said Kevin Rollins, Dell's chief executive officer. "I would like to thank the Governor and the General Assembly for their cooperation in creating an economic development partnership that brings jobs to North Carolina and supports Dell's continued growth."
The General Assembly convened a one-day special session last Thursday to approve an economic incentive for computer manufacturing companies that in the case of Dell, will provide up to $225 million in tax credits over the next 15 years. Legislators overwhelmingly approved the package by a vote of 92-18 in the House and 33-15 in the Senate.
In addition to the Computer Manufacturing Tax Credit, Dell will receive a Job Development Incentive Grant (JDIG) valued at up to $14.1 million over 12 years, under the terms of the agreement authorized unanimously by the state Economic Investment Committee.
Over the next 20 years, the N.C. Department of Commerce estimates the project will generate a cumulative gross state product value of about $24.5 billion and produce a positive cumulative net state revenue impact of $743 million.
For each year in which the company meets the required performance targets, the state will provide a grant equal to 75 percent of the state personal income withholding taxes derived from the creation of new jobs. Because Dell will locate in a Tier 4 or 5 county, nearly $4.7 million will go to the state's Industrial Development Fund for infrastructure improvements in rural North Carolina.
Dell also will receive training assistance from the New and Expanding Industry Training program, Golden LEAF Foundation and the Piedmont Triad Workforce Development Boards. Funding provided by the workforce boards is contingent upon the company hiring displaced and adult workers. The estimated total cost of all the incentives is $242.5 million over 20 years based on Dell's current plan.