On Aug. 5, Gov. Josh Stein announced that STERIS, a leading health care company, will create 335 jobs in Lee County. The company will invest $600 million in a new manufacturing and distribution Chemistries Manufacturing Center of Excellence in Sanford.
“STERIS is making a major investment in North Carolina, which reinforces our state’s reputation as a powerhouse in the life sciences industry,” said Stein in a press release. “Decades of excellence in manufacturing and innovation have developed the world-class talent, research, and supply chain that continues to attract global companies and drive long-term economic growth across our state.”
Founded in 1985, STERIS is a global provider of products and services that support patient care with an emphasis on infection prevention. STERIS employs more than 18,000 people across approximately 250 locations in more than 35 countries. This new 600,000-square-foot state-of-the-art campus will include advanced manufacturing, R&D, lab, warehouse, and distribution operations.
“After extensive analysis of our existing facilities and Customer demand, we have decided to make a significant investment in the United States to support our long-term global growth,” said Dan Carestio, president and CEO of STERIS. “Creating a formulated chemistries Center of Excellence will allow us to accelerate innovation, expand capacity and optimize our U.S. chemistries manufacturing and distribution network. Our Customers save lives every day, and with this investment we will be well positioned to support their needs for years to come.”
Although salaries for the positions will vary, the average annual salary will be $68,704, exceeding the Lee County average of $59,903. These new jobs could create a potential annual payroll impact of more than $23 million for the region.
STERIS’ operation in North Carolina will be facilitated, in part, by a Job Development Investment Grant (JDIG) awarded to STERIS Corporation, which was approved by the state’s Economic Investment Committee. Over the course of the 12-year term of this grant, the project is estimated to grow the state’s economy by $1.8 billion. Using a formula that takes into account the new tax revenues generated by the new jobs and capital investment, the JDIG agreement authorizes the potential reimbursement to the company of up to $3,213,000, spread over 12 years. State payments only occur following performance verification each year by the departments of Commerce and Revenue that the company has met its incremental job creation and investment targets.
The project’s projected return on investment of public dollars is 325 percent, meaning for every dollar of potential cost to the state, the state receives $4.25 in state revenue. 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.
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*Contributed article. Photo via Sandford Area Growth Alliance.
