Increasingly, they're being used to keep existing ones.

State and Charlotte-area business recruiters are lining up enticements for a 105-year-old Charlotte manufacturer that wants to build a new plant and move about 30 miles away. The company, which nobody involved in the negotiations would identify, is not expected to add jobs.

In fact, it eventually could trim its 477-employee work force through attrition.

"I think it's important that we do what's necessary to retain as many of our industries as we can," said Ronnie Bryant, president of the Charlotte Regional Partnership, which seeks to bring jobs to 12 counties in North Carolina and four in South Carolina.

He declined to comment on the recruiting efforts, which are taking place under the code name "Project Huge," but said: "This is about protecting jobs."

On Thursday, the Golden LEAF Foundation, which oversees a $700 million pool of public funds, approved a $2.5 million grant to help Oakboro in Stanly County, east of Charlotte, land the facility. Last month, the N.C. Rural Economic Development Center approved $1 million in grants to improve water and sewer service there.

The county and other public bodies are expected to approve additional perks.

"We're very pleased to be receiving anything," said Sherrill Smith, chairman of the Stanly County Economic Development Commission, who also declined to comment on "Project Huge." "Stanly County would appreciate any jobs."

So would Lancaster County, S.C., where officials are making a play for the manufacturer and have assembled financial lures that could total tens of millions of dollars, said Mark Sorrells, senior vice president with Golden LEAF, which manages a portion of state funds from a settlement with cigarette makers.

The competition has increased pressure on North Carolina officials as a shift accelerates in economic development. For years, the state has had tax breaks in place to benefit companies with local operations and serve as an enticement for the companies, and their jobs, to stay.

But leaders are becoming more amenable to using discretionary funds traditionally used to attract new positions to maintain existing ones. The most prominent example occurred in the fall, when the legislature set aside as much as $60 million for two tire makers in the state.

The goal was to keep them from moving about 5,000 positions elsewhere. "Project Huge" has tinges of that effort.

"It's just what we have to do to stay competitive," Bryant said. "You're helping a company be successful, and you're protecting jobs in your region."

Stanly County, like many rural parts of the state, has been hurt by declines in textiles and has struggled to find replacements. Unemployment rose as high as 9.1 percent in January 2002. It was 5.1 percent in December, above the state average of 4.7 percent. Still Stanly County is better-positioned than some regions because of its proximity to Charlotte.

It has had victories in recent months. In January, for instance, Chicago Tube & Iron Co., which makes industrial tubing, said it would expand, invest $10.8 million and add 42 jobs over three years.

There's a chance that this latest project could involve a similar company.

Charlotte Pipe and Foundry recently bought land in Oakboro, spokesman Brad Muller said Thursday. The company was established in 1901 and employs about 460 people -- a description very similar to that of the business behind "Project Huge."

What's more, the "Project Huge" company has a sister operation near Charlotte, Sorrells said. Charlotte Pipe and Foundry has another facility in Monroe, also near Charlotte.

Muller said that his company often buys land for investment purposes and that transactions don't necessarily signal a move. Asked about Golden LEAF, Muller said he couldn't confirm talks with the foundation, but he said company and foundation officials might have met Thursday.

(Reporter Kirsten Valle of The Charlotte Observer contributed to this report.)

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