Novo Nordisk is expanding its drug-making presence in Johnston County with a facility that will add at least 691 jobs. The average wage will be $68,420, which is more than Johnston County’s average wage of $34,448.
The facility, worth $1.85 billion, will manufacture active ingredients for diabetes drugs. Novo Nordisk already employs 719 people at its existing plant near Clayton.
The company has committed to hitting full staffing within five years, although the grant terms will run for 12 years. It’s unclear what other locations were bidding for the project.
North Carolina’s Economic Investment Committee reached agreement with Novo Nordisk on an economic incentives package Wednesday morning, according to WRAL reporter Mark Binker, who was at the meeting.
The funding includes a $15.9 million JDIG grant, which is given by way of reimbursements for withholding taxes. The state expects to invest $1.7 million in worker training for the project, and The One North Carolina Fund is giving $1 million.
Johnston County and Clayton are expected to make their own contributions, including participation in the land acquisition. Johnston County is promising $94 million in property tax reimbursements, and officials with the Town of Clayton said they will invest $800,000 in infrastructure for the facility.
After the state investment, the state still expects to earn $209 million more in revenue from taxes and other sources than it is putting into the project.
The deal will help offset job losses coming from the closing of a Hospira plant in Clayton. The biotechnology-related manufacturing complex in Johnston County also includes operations run by Grifols and Novo Nordisk. Bayer CropScience also operates a bee research facility in the county.
But there’s more work to be done.
A “special meeting” of the Johnston County Board of Commissioners in Clayton at 12:30 p.m. to consider local incentives.
Some state incentive packages require what is called a “local match.”
Gov. Pat McCrory is scheduled to make an announcement about the deal around 2 p.m. at the proposed site.
“A company intends to construct production facilities and hire several hundred full-time employees to work there,” said Tony Braswell, Chairman of the Johnston County Board of Commissioners, in announcing Wednesday’s meeting.
“The company has proposed locating the project in Johnston County in exchange for certain economic incentives … The Board of Commissioners will solicit public comment on the incentives at the public hearing. It is the preliminary intention of the Board of Commissioners to approve these incentives as part of an incentives package to be granted to the company in exchange for the location and operation of the facility in Johnston County.”
The incentives include a purchase of 95 acres of land where the plant will be located for some $2.2 million by the county.
The land will be leased to the company, and the firm will have an option to purchase it.
The land comes with conditions, Braswell said.
“The land has been preliminarily valued at approximately $2,400,000.00, with an annual rental value of approximately $48,000. The property will be conveyed or leased to the company with an option to purchase in consideration for the company’s commitments to operate the new facility with
“(1) several hundred new full-time hires and
“(2) real property improvements and business property that will return property tax revenues substantially in excess of the county’s investment. The company will be obligated to reimburse or return the property to the County if it does not fulfill those commitments,” he wrote in the notice.