Gov. Bev Perdue announced today that Brunswick Corporation, a leading global manufacturer of recreational products and parent company of New Bern-based Hatteras Yachts, will expand in Craven County. The company plans to add 350 jobs over the next five years and invest $4.7 million. The expansion was made possible in part by state grants from the Job Development Investment Grant program and One North Carolina Fund.
“Hatteras has been one of the foremost corporate citizens of New Bern since the 1960s,” said Gov. Perdue. “I often work to bring new jobs to North Carolina, but it is equally important to help our existing businesses grow.”
Hatteras currently employs 279 full-time workers in New Bern. While individual wages for the 350 additional jobs will vary by job function, the overall average for the new jobs will be $31,425 a year, not including benefits. That is higher than the Craven County average of $29,848.
Brunswick Corporation (NYSE:BC) is headquartered outside of Chicago and makes pleasure boats, marine engines, fitness equipment, and bowling and billiards equipment. The company’s products are sold throughout North America, Europe, South America, Asia and Australia with almost 15,000 workers worldwide.
In 2006, Hatteras acquired Cabo Yachts, based in California. While Hatteras makes luxury sportsfishing convertibles and motoryachts that range from 50 to 100 feet, Cabo makes sportsfishing boats in the 32- to 52-foot range. Hatteras plans to move the Cabo manufacturing operation to New Bern to consolidate operations there.
“Combining these two great brands under one roof in New Bern is the next step in how we are preparing for a magnificent future,” said Hatteras President and CEO James R. Meyer. “For the past 18 months, we have been investing heavily in new products and modernizing our factory here, and now, with help from North Carolina, we will be able to fully leverage these investments by completing this move. This is wonderful news for our customers, dealers and the New Bern community, but also a very difficult time for our exceptionally loyal and talented employees in California.”
“Hatteras’ decision is not only welcome news in a tough economy,” said Rep. Alice Graham Underhill, of New Bern. “The company’s expansion also is a prime example of why we have invested in education and infrastructure in North Carolina – to build a workforce and business climate that will attract new companies and encourage growth among those that are already here.”
“It’s reassuring to see that companies recognize the importance of North Carolina’s top flight work force,” said Rep. William Wainwright, of Havelock. “Creating jobs remains our No. 1 priority.”
To help facilitate this expansion, the company has been awarded a grant of up to $60,850 from the state’s One North Carolina Fund. This fund assists the state in industry recruitment and expansion by providing cash grants to attract business projects deemed by the governor to be vital to a healthy and growing state economy. No money is paid up front and companies must meet job creation and investment targets to receive payments. One North Carolina Fund grants also require a local match, and this grant is contingent upon approval of local incentives.
Also, the state Economic Investment Committee today voted to award a Job Development Investment Grant to Brunswick. JDIGs are awarded only to new and expanding businesses and industrial projects whose benefits exceed the costs to the state and which would not be undertaken in North Carolina without the grant.
Under the terms of the JDIG, the company is eligible to receive a grant equal to 70 percent of the state personal income withholding taxes derived from the creation of new jobs for each of the 12 years in which the company meets annual performance targets. If Brunswick meets the targets called for under the agreement and sustains them for 12 years, the JDIG could yield slightly more than $3 million in maximum benefits for the company.
In addition, up to $542,000 could be added to the state’s Industrial Development Fund for infrastructure improvements in economically distressed counties. When a JDIG is awarded in the state’s more prosperous counties such as Craven, 15 percent of the grant is allocated to this fund to encourage economic development in less prosperous areas.
Other partners who assisted with this project include: the N.C. Department of Commerce, N.C. Community Colleges, N.C. Eastern Region, N.C. Employment Security Commission, Craven County, Craven County Economic Development Commission, Eastern Carolina Workforce Development Board and the City of New Bern.
Through Gov. Perdue’s JobsNOW initiative, the state continues to work aggressively to create well-paying jobs, train and retrain its workforce, and lay the foundation for a strong and sustainable economic future.
For more information about Brunswick, including job opportunities, visit www.brunswick.com. For more information about Hatteras, visit www.hatterasyachts.com and for more information about Cabo, visit caboyachts.com.
Editors Note: The link to the Cabo company website is outdated and no longer active.