State Grant Helps Company Locate in Shelby
RALEIGH – Gov. Pat McCrory announced today that KSM Castings NC Inc., a producer of light metal casting products for use in the automotive industry, will establish its first U. S. manufacturing facility in Shelby. The company plans to create 189 jobs in North Carolina by the end of 2018, and invest more than $45 million into its Cleveland County facility. The project was made possible in part by state grants from the Job Development Investment Grant and the One North Carolina Fund Award.
“I am committed to improving the economy of North Carolina,” said Gov. McCrory. “And attracting advanced manufacturing jobs like those at KSM Castings will help us rebuild our economy and return our state to the powerhouse it once was. We have a strong and trained workforce that will enable KSM to flourish here.”
Honored as one of Germany’s most innovative companies, KSM Castings was founded in 1947. With its headquarters in Hildesheim, Germany, and currently six production plants in Europe and China, KSM Castings produces light metal casting products, including chassis, powertrain and body applications, for use in the automobile industry.
Dr. Frank Boshoff, CEO of KSM Castings, highlighted “Our decision to invest in North Carolina is an important step towards the company's strategy to increase its global production footprint. The new facility in Shelby will enable us to expand our business with existing and new customers in the U.S. in the background of increasing demands for lightweight casting solutions that help our customers comply with stricter emission regulations and improve driving performance at the same time. We are fully convinced that the technology expertise provided by KSM Castings and the availability of a skilled manufacturing workforce in an emerging automotive cluster make a perfect match for achieving our future goals.”
KSM plans to construct a 110,000 square foot production facility in Shelby and install 8-10 high pressure die-casting machines. Products made at the new plant will include fully machined transmission, engine and steering parts. Potential future expansion could include the production of gearbox housings, and body and chassis applications that partly require additional production processes such as gravity die-casting and counter pressure casting.
“The announcement of KSM Castings is a great way to start 2013. Our Economic Development team has been working to land this project for over a year. Congratulations to them for a job well done.” said Cleveland County Commissioner Eddie Holbrook. “KSM is a great addition to Cleveland County and we expect this announcement to open the door for future opportunities.”
Compensation will vary by job function, but the average compensation for the new positions is expected to be $42,810 plus benefits. The average annual wage in Cleveland County is $32,760. To help facilitate this location, the company has been awarded a grant of up to $705,000 from the state’s One North Carolina Fund. This fund assists the state in industry recruitment and Cleveland County Economic Development Partnership 200 S. Lafayette Street, Shelby, NC 704-487-8521 expansion by providing financial assistance through local governments to attract business projects deemed by the governor to be vital to a healthy and growing state economy. One North Carolina Fund grants require a local match, and this grant is contingent upon approval of local incentives.
Today, the state Economic Investment Committee voted to award a Job Development Investment Grant (JDIG) to KSM Castings. 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 JDIG, the company is eligible to receive a grant equal to 65 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 KSM meets the targets called for under the agreement and sustains them for 12 years, the JDIG could yield as much as $2.86 million in maximum benefits for the company.
“This is great day for the citizens of Shelby, Cleveland County and the entire state of North Carolina.”, said City of Shelby Mayor Stan Anthony. “KSM Castings is an extremely impressive German company and we are thrilled the company will create 189 good paying manufacturing job opportunities for our area citizens. This is another example of the outstanding cooperation between the City, County and State economic development teams. Congratulations and thanks to all involved!”
Cleveland County Commissioner Ronnie Hawkins added “The Commissioners are grateful for the hard work that Kristin Fletcher and the entire Economic Development team have put into bringing this project to Cleveland County. We are excited about the increase this project will bring to our tax base and we are especially pleased that KSM will create 189 manufacturing jobs in Cleveland County.”
Other partners who assisted with this announcement include: The N.C. Department of Commerce, Cleveland County, City of Shelby, Cleveland County Economic Development Partnership, Cleveland Community College, Isothermal Planning and Development Commission, Gardner-Webb University, and Duke Energy.
For more information about KSM Castings, including job opportunities, visit www.ksmcastings.com.
Cleveland County Economic Development Partnership 200 S. Lafayette Street, Shelby, NC 704-487-8521