(The Center Square) – A company planning a $35.7 million food processing plant in North Carolina creating 200 jobs could reap $4.1 million in taxpayer subsidies through its new home city, county and state.
The Economic Investment Committee of the state Commerce Department gave approval for a package valued at $1.8 million to Veetee Foods. The town of Selma and Johnston County are providing another $2.3 million.
With plants in India and the United Kingdom, Veetee Foods – founded in 1986 – began with a focus on rice but has expanded to other convenience foods, the state said. The plant in Selma will have the capacity to cook rice, pasta, noodles, spaghetti and other foods for the American market. The company has been importing food from its United Kingdom plants to sell in the United States.
“It’s great to see another international company like Veetee Foods decide that North Carolina is the perfect place to expand their presence in the United States,” Gov. Roy Cooper said in a statement. “Our state’s talented workforce and worker training systems, along with our infrastructure and transportation networks give companies the confidence they seek in a world-class business location like Johnston County.”
The factory will generate $1.90 in state tax revenue for every dollar invested, a release says.
“We are delighted to see our ambitious expansion vision reach the USA, and we see Johnston County as our perfect partner,” Moni and Rajiv Varma, the company’s chairman and managing director, said in a statement. “We are humbled by this opportunity and are equally excited to unleash a wide range of delicious meals that families across the country will no doubt enjoy!”
Jobs at the new plant will average $58,387, which is higher than the Johnston County average of $50,605. Total investment in the plant is projected to be $35.7 million by Dec. 31, 2029.
Economists question the effectiveness of financial incentives to private businesses to expand or come to a new state. Comparisons of plant averages and the county average is questioned because salaries of a few corporate leaders at a plant of 200 can skew the average higher and not have the same impact on the wage of Johnston County’s estimated 114,000 member workforce.
The company narrowed its search for a new plant site to Selma and Chester County, S.C., the state said. Factors in the site selection included a nearby airport with daily European flights, quality labor and competitive real estate pricing.
Selma is about 45 miles from the Raleigh-Durham International Airport.