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North Carolina: Governor Cooper Announces 201 New Jobs as Furniture Manufacturer Chooses Guilford County
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Prepac Manufacturing Ltd., a North American manufacturer of Ready-to-Assemble (RTA) furniture will locate a new east coast furniture factory in Guilford County, creating 201 jobs, Governor Roy Cooper announced today. The company will invest $27.1 million in a new 260,000 square foot factory in Whitsett.

"Even in a pandemic, North Carolina continues to grow jobs with companies like Prepac because of our great workforce, strategic location and reliable transportation," said Governor Cooper.

Prepac Manufacturing, headquartered in Vancouver, British Columbia, has grown organically to become one of the largest producers of RTA furniture, supplying most of North America's major online retailers. With a specialization in e-commerce and direct-to-consumer distribution methods, the company's just-in-time manufacturing processes and state-of-the-art equipment help it produce a wide range of products for all areas of the home including bedroom, home office, living and dining room, utility storage and garage products. The company's new facility in North Carolina will help the company expand its markets and expedite shipments to consumers located along the entire eastern seaboard.

"When we started evaluating potential locations for our new east coast factory there were several good options for us to consider" said Jim Mathison, President of Prepac Manufacturing. "Ultimately, we chose North Carolina and specifically Guilford County due to several key factors including the availability of a highly skilled workforce, easy access to major markets, and compelling State and County resources to help ensure that this project is successful given these uncertain times." Mathison continued, "We look forward to expanding our North American Manufacturing base in Guilford County and are excited to be moving forward with this project."

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Although wages will vary depending on position, the annual payroll from the new jobs mean the state and local economy will see a positive impact of more than $9 million each year.

"North Carolina is the leading manufacturing state in the southeast United States, with nearly 20 percent of our economic output coming from this important sector," said North Carolina Commerce Secretary Anthony M. Copeland. "It's good to see innovative companies like Prepac Manufacturing choose our state for the next stage of their growth."

Prepac Manufacturing project in North Carolina will be facilitated, in part, by a Job Development Investment Grant (JDIG) approved by the state's Economic Investment Committee earlier today. Over the course of 12 years, the project is estimated to grow the state's economy by $376.3 million. Using a formula that takes into account the new tax revenues generated by the new jobs, the agreement authorizes the potential reimbursement to the company of up to $2,106,000, spread over 12 years. Payments for all JDIGs only occur following performance verification by the departments of Commerce and Revenue that the company has met its incremental job creation and investment targets. JDIG projects result in positive net tax revenue to the state treasury, even after taking into consideration the grant's reimbursement payments to a given company.

Prepac Manufacturing's JDIG award is contingent on final approval of all local government incentives associated with the project.

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Because Prepac Manufacturing chose a site in Guilford County, classified by the state's economic tier system as Tier 2, the company's JDIG agreement also calls for moving as much as $234,000 into the state's Industrial Development Fund – Utility Account. The Utility Account helps rural communities finance necessary infrastructure upgrades to attract future business. Even when new jobs are created in a Tier 2 county such as Guilford, the new tax revenue generated through JDIG grants helps more economically challenged communities elsewhere in the state. More information on the state's economic tier designations is available here.

In addition to the North Carolina Department of Commerce and the Economic Development Partnership of N.C., other key partners on this project were the North Carolina General Assembly, the North Carolina Community College System, Duke Energy, Guilford Technical Community College, Guilford County, the Guilford County Workforce Development Board, the City of Greensboro, the Town of Whitsett, the High Point Economic Development Corporation, and the Greensboro Chamber of Commerce.

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