Frank Norton, Staff Writer
The largest maker of blast-resistant vehicles to the U.S. Marines will start manufacturing in Person County, boosting economic life in an area that is slowly recovering from manufacturing losses and joblessness.
Force Protection of Ladson S.C. will spend $31 million rebuilding an empty plant outside Roxboro and create 270 jobs there over the next four years, according to the terms of a deal reached between the company and state and local economic development officials.
The 430,000 square-foot facility, vacated by auto parts maker Collins & Aikman, is needed to ramp up vehicle production to meet U.S. military needs for the war in Iraq. The company was late delivering vehicles for deployment this year, according to the Pentagon. State and local officials say that is benefiting North Carolina.
"The military presence in North Carolina has an $18 billion impact on our economy," Gov. Mike Easley said in a statement announcing the agreement. "Our focus on being the most military-friendly state in the nation attracts defense-related businesses that want to grow and expand."
As part of the deal, the company could receive grants totaling more than $3 million if it meets and sustains job creation targets. Among the incentives: a job development investment grant for $2.07 million over an 11-year period and $500,000 from the One North Carolina Fund, which is controlled by the governor.
Local governments are required to match grants from the One fund but Glen Newsome, who heads the Person County Economic Development Commission, said they would exceed that match. He declined to provide further details, saying local officials are still ironing out final negotiations with the company.
Newsome also said the commission is working on other recruitment projects that could tie in with Force Protection's investment. He declined to elaborate.
"It's the job creation that is most important to us," Newsome said.
In May, Person County had a jobless rate of 6.7 percent, above the state average of 4.8 percent.
Wages for the new jobs will vary, but the average pay will be $30,276 a year plus benefits. The average county wage is $28,496, not including benefits.
In the past year, industrial textile manufacturer P&A and vehicle strut maker StrutMasters took over other plants in Roxboro emptied by Collins & Aikman. The company, which made fabric for automotive seats and interiors, filed for bankruptcy in 2005. It closed three plants in Roxboro last year, putting 590 people out of work.
Newsome said the Force Protection investment fills the last of the open major industrial sites.
Force Protection will use the facility to expand production capacity of its iconic "Cheetah" vehicle line and other bomb-resistant vehicles.
According to a company press release, it plans to produce 2,000 vehicles at the Roxboro site by 2008. Company executives did not comment further.
Roadside bombs are the leading killer of U.S. Forces in Iraq, and the Pentagon has announced plans to spend another $20 billion on armored vehicles.
Force Protection, which employs about 900 at its headquarters near Charleston, has seen its fortunes rise as the demand for armored vehicles has risen. Revenue almost quadrupled during its 2006 fiscal year, according to documents filed with the Securities and Exchange Commission. In addition, its stock has increased more than 50 percent since early February. It closed up 10 cents to $22.79 on Thursday.
However, as the company's SEC filings point out, those fortunes could reverse if military spending is cut: "While Department of Defense funding has grown rapidly over the past few years, there is no assurance that this trend will continue. ... Wartime support for defense spending could wane if the country's troop deployments in support of operations in Iraq and Afghanistan are reduced."