BorgWarner Inc., a global mobility solutions company based in the United States, plans to expand its operations in Henderson County, North Carolina. The company will invest at least $74.9 million to build a new advanced manufacturing facility in Hendersonville, which is expected to create 193 jobs.
Governor Josh Stein commented on the decision, stating, “I am pleased that BorgWarner will deepen its roots in western North Carolina. 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.”
BorgWarner’s headquarters are located in Auburn Hills, Michigan. The company provides technology and system solutions to major automotive manufacturers worldwide and has operated for over 130 years. The planned 220,000-square-foot site will be BorgWarner’s second facility in North Carolina and adds to its network of 84 global locations.
“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 of 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.”
N.C. Commerce Secretary Lee Lilley noted, “BorgWarner could have chosen anywhere in the world for this new product line, but they chose to reinvest in North Carolina. 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.”
The average annual salary for these new positions is projected at $78,628 compared with Henderson County’s current average wage of $51,565. This expansion could result in an annual payroll increase exceeding $15 million for the region.
A Job Development Investment Grant (JDIG) has been awarded by the state’s Economic Investment Committee to BorgWarner Industrial Solutions LLC as part of this project. Over 12 years, it is estimated that this initiative will add $583 million to North Carolina’s economy. Under JDIG terms, BorgWarner may receive up to $1.79 million spread over 12 years if job creation and investment targets are met following verification by relevant state departments.
The project anticipates a return on public investment of 74 percent; for every dollar potentially spent by the state through JDIG reimbursements, $1.74 would be generated as revenue for North Carolina’s treasury even after those payments are made. Because Henderson County is classified as Tier 3 under the state’s economic tier system—indicating higher relative prosperity—a portion ($595,500) from BorgWarner’s JDIG agreement will go into North Carolina’s Industrial Development Fund – Utility Account which supports infrastructure improvements in rural communities.
Senator Timothy D. Moffitt said: “We are delighted to welcome BorgWarner back to Hendersonville. This company has been a strong corporate member of our community, and we look forward to partnering with them again and for many more years to come.”
Representative Jake Johnson added: “This is outstanding news for the region and the entire state. We’re grateful to the economic development professionals and state and local officials that support our economic recovery with much-needed wins like this.”
Organizations involved include the North Carolina Department of Commerce; Economic Development Partnership of North Carolina; General Assembly; Division of Workforce Solutions; Community College System; Blue Ridge Community College; Duke Energy; Henderson County government; Partnership for Economic Development; and City of Hendersonville.
