BorgWarner Selects Henderson County for $75 Million Industrial Operations Expansion

NORTH CAROLINA, October 28 - Today Governor Josh Stein announced BorgWarner Inc., a U.S.-based global mobility solutions company, is expected to create 193 jobs in Henderson County. The company says it will invest a minimum of $74.9 million to build an advanced manufacturing facility for a new industrial product in Hendersonville. This investment further strengthens North Carolina’s automotive supply chain.  

“I am pleased that BorgWarner will deepen its roots in western North Carolina,” said Governor Josh Stein. “This decision reaffirms our ranking as the best state to do business, highlights our thriving automotive industry, and invests in our manufacturing economy in western North Carolina at a time when it’s sorely needed.”

Headquartered in Auburn Hills, Michigan, BorgWarner supplies leading technologies and systems solutions to every major automotive Original Equipment Manufacturer (OEM) in the world. For more than 130 years, BorgWarner has been a transformative global product leader bringing successful mobility innovation to market. The new 220,000-square-foot manufacturing site will be the company’s second North Carolina facility, adding to its portfolio of 84 manufacturing and technical center locations worldwide.

“BorgWarner is proud to continue to invest in the state of North Carolina to bring an exciting new technology to market and provide jobs to local residents,” said Joseph F. Fadool, President and Chief Executive Officer, BorgWarner Inc. “We appreciate the grant and continued support from the state of North Carolina to expand our manufacturing footprint here in the United States.”

“BorgWarner could have chosen anywhere in the world for this new product line, but they chose to reinvest in North Carolina,” said N.C. Commerce Secretary Lee Lilley. “Western North Carolina is recovering stronger every day, and companies looking to grow want to do so in places like Henderson County, where there is access to a strong talent pool, a solid supply chain, and an excellent quality of life.”

While wages vary by position, the annual average salary for the new positions is expected to be $78,628. The average wage in Henderson County is $51,565. These new jobs could create an annual payroll impact of more than $15 million for the region.

BorgWarner’s expansion in North Carolina will be facilitated, in part, by a Job Development Investment Grant (JDIG) awarded to BorgWarner Industrial Solutions LLC; the grant was approved by the state’s Economic Investment Committee earlier today. Over the course of the 12-year term of this grant, the project is estimated to grow the state’s economy by $583 million.

Using a formula that takes into account the new tax revenues generated by the new jobs and the capital investment, the JDIG agreement authorizes the potential reimbursement to the company of up to $1,786,500, spread over 12 years. State payments occur only following performance verification by the departments of Commerce and Revenue that the company has met its incremental job creation and investment targets.

The project’s projected return on investment of public dollars is 74 percent, meaning for every dollar of potential cost to the state, the state receives $1.74 in state revenue. 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. Because BorgWarner chose to locate to Henderson County, classified by the state’s economic tier system as Tier 3, the company’s JDIG agreement also calls for moving $595,500 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 3 county such as Henderson, the new tax revenue generated through JDIG grants helps more economically challenged communities elsewhere in the state.

“We are delighted to welcome BorgWarner back to Hendersonville,” said Senator Timothy D. Moffitt. “This company has been a strong corporate member of our community, and we look forward to partnering with them again and for many more years to come.”

“This is outstanding news for the region and the entire state,” said Representative Jake Johnson. “We’re grateful to the economic development professionals and state and local officials that support our economic recovery with much-needed wins like this.”

In addition to the North Carolina Department of Commerce and the Economic Development Partnership of North Carolina, other key partners in this project include the North Carolina General Assembly, N.C. Commerce’s Division of Workforce Solutions, the North Carolina Community College System, Blue Ridge Community College, Duke Energy, Henderson County, the Henderson County Partnership for Economic Development, and the City of Hendersonville.