Prepac Manufacturing to invest $27.1 million in Whitsett, N.C. create 201 new jobs
Topics: PREPAC MANUFACTURING
The company will invest $27.1 million in a new factory in Whitsett.
Prepac Manufacturing, headquartered in Vancouver, British Columbia, has grown organically to become one of the largest producers of RTA furniture, supplying most of North America’s major online retailers.
With a specialization in e-commerce and direct-to-consumer distribution methods, the company’s just-in-time manufacturing processes and state-of-the-art equipment help it produce a wide range of products for all areas of the home including bedroom, home office, living and dining room, utility storage and garage products.
The company’s new facility in North Carolina will help the company expand its markets and expedite shipments to consumers located along the entire eastern seaboard.
Although wages will vary depending on position, the annual payroll from the new jobs mean the state and local economy will see a positive impact of more than $9 million each year.
Prepac Manufacturing project in North Carolina will be facilitated, in part, by a Job Development Investment Grant (JDIG) approved by the state’s Economic Investment Committee.
Over the course of 12 years, the project is estimated to grow the state’s economy by $376.3 million.
Using a formula that takes into account the new tax revenues generated by the new jobs, the agreement authorizes the potential reimbursement to the company of up to $2,106,000, spread over 12 years.
Payments for all JDIGs 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.
Because Prepac Manufacturing chose a site in Guilford County, classified by the state’s economic tier system as Tier 2, the company’s JDIG agreement also calls for moving as much as $234,000 into the state’s Industrial Development Fund – Utility Account.
The Utility Account helps rural communities finance necessary infrastructure upgrades to attract future business. ■