(The Center Square) – Nearly $1.9 million granted in taxpayer incentives for a fiber-optic company’s expansion is being withdrawn, says a request to North Carolina’s Commerce Department.
CommScope is moving forward with expansion in Catawba County. However, recent acquisition of the company by Amphenol and “unforeseen” factors such as automation prompted the decision.
“The financial uncertainties of the acquisition have made it difficult for CommScope to commit to meeting the obligations outlined in the agreement,” the letter from the company said. “As a result, continuing under the current terms is no longer feasible, leading to this decision to formally conclude the agreement.”
Of more than 400 job development investment grants awarded since 2003, only 50 have been successfully met to full terms – a little less than 12%. Nearly 100 have been withdrawn before any funds were paid out; another 100-plus were also terminated or withdrawn, some having had funds disbursed.
The company was not able to meet its employment targets and had not yet received any payments from its job development investment grant that was spread over 12 years. News of the decision came Tuesday during the meeting within the Commerce Department of the Economic Investment Committee.
CommScope, in the 2023 announcement of its grant, said it was moving forward on a $60.3 million expansion of its fiber-optic cable manufacturing plant that promised 250 new jobs. Total of the grant was $1,899,900.
“State payments only occur following performance verification by the departments of Commerce and Revenue that the company has met its incremental job creation and investment targets,” the state says regularly in releases about incentives.
“Notwithstanding the termination, CommScope remains committed to developing its significant manufacturing operations in North Carolina,” the company wrote. “At our major facilities in Catawba County, we are working diligently to expand fiber-optic cable production to increase capacity and meet growing demand.”
