Sumitomo Forestry America, Inc., a comprehensive housing and wood products company will create 129 jobs in Randolph County, Governor Roy Cooper announced today. The company, through a new wholly owned subsidiary, will establish a manufacturing facility and invest $19.5 million in Archdale.
“Manufacturing companies find North Carolina’s rural communities offer them an ideal place to grow their businesses,” said Governor Cooper. “From our superior transportation networks to our skilled workforce, Sumitomo Forestry will find Randolph County will deliver the right ingredients for success.”
Sumitomo Forestry America is a wholly owned subsidiary of Sumitomo Forestry Co., Ltd., a Nikkei-listed forestry company founded in 1691 and headquartered in Tokyo. Sumitomo Forestry has accumulated technologies and expertise related to wood and wood products over its many years in business, and one of the company’s major lines of business is housing and construction. The company’s project in North Carolina will establish a component manufacturing and distribution facility to produce building materials, such as roof trusses, floor trusses, and wall panels used in residential housing and wooden commercial and multi-family buildings.
Another wholly owned subsidiary of Sumitomo Forestry America, Charlotte-based Crescent Communities, will help develop and build the new production facility.
“We look forward to partnering with North Carolina on the development of this facility, which will not only help builders and developers with supply chain needs but will also contribute to the local economy and community,” said Atsushi Iwasaki, President of Sumitomo Forestry America, Inc. “Randolph County, North Carolina offers the ideal conditions for our investment, including infrastructure, a skilled workforce, and a favorable business climate. We greatly appreciate the community’s warm welcome and will continue to share updates as the project progresses.”
Although wages for the new jobs will vary depending on position, the average salary will be $45,782, which is above the current average wage in Randolph County of $40,552. The state and local area will enjoy an additional impact of more than $5.9 million each year from the new payroll.
“We welcome Sumitomo Forestry, another Japanese company, as they join North Carolina’s family of manufacturers,” said Commerce Secretary Machelle Baker Sanders. “Japan remains one of our state’s largest sources of foreign direct investment, thanks to our state’s long-term investments in our education and workforce training systems, and our transportation infrastructure.”
Sumitomo Forestry’s project in North Carolina will be facilitated, in part, by a Job Development Investment Grant (JDIG) approved by the state’s Economic Investment Committee earlier today. Over the course of 12 years, the project is estimated to grow the state’s economy by $308.3 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 $695,700, 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 Sumitomo Forestry chose a site in Randolph County, classified by the state’s economic tier system as Tier 2, the company’s JDIG agreement also calls for moving $77,300 into the state’s Industrial Development Fund – Utility Account. The Utility Account helps rural communities across the state finance necessary infrastructure upgrades to attract future business.
“North Carolina’s outstanding business climate attracts world-class companies to our state,” said N.C. Senator David Craven. “We’re proud that Sumitomo Forestry is bringing new jobs and investment to Archdale, to Randolph County, and to the great people of our region.”
“Many people and organizations supported this company throughout the extensive site selection process,” said N.C. Representative Pat Hurley. “We’re delighted that Sumitomo Forestry has chosen our community for this important new project for their company.”
In addition to the North Carolina Department of Commerce and the Economic Development Partnership of N.C., other key partners on this project were the North Carolina General Assembly, the North Carolina Community College System, the North Carolina Department of Transportation, the GoldenLEAF Foundation, the North Carolina Railroad Company, Randolph County, the City of Archdale and the Randolph County Economic Development Corporation.
Contributed.
