Business

Pratt& Whitney investment valued at $650MM

Oct. 22. Pratt & Whitney will invest approximately $650 million over several years to build new manufacturing plant in Asheville. The company, a division of Raytheon Technologies Corp., will create 800 jobs through 2027.

The 1 million square foot high-tech turbine airfoil production facility “signals a bright future in aviation even with the current challenges the industry faces,” said Gov. Roy Cooper who announced the project.

Pratt & Whitney is a world leader in the design, manufacture and service of aircraft and helicopter engines, and auxiliary power units.

“Turbine airfoils are a critical component across our engine portfolio and demand will increase significantly as the market recovers over the next several years,” said Chris Calio, president of Pratt & Whitney.

Although wages will vary depending on position, the average annual salary for all the new positions is planned to reach $68,000. The current average wage in Buncombe County is $43,134. Once all the new positions are filled, payroll impact will amount to $54 million a year.

Pratt & Whitney’s 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 the 12-year term of this grant, N.C. Commerce economists estimate the project could grow the state’s economy by $7.4 billion. Using a formula that takes into account the new tax revenues generated by the new jobs, the JDIG agreement authorizes the potential reimbursement to the company of up to $15,543,000, paid over 12 years. 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. 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.

Pratt & Whitney’s JDIG agreement also could move as much as $5,181,000 into the state’s Industrial Development Fund – Utility Account for use by rural communities elsewhere in the state. The Utility Account helps finance necessary infrastructure upgrades in more economically challenged areas of the state to attract future business.

Partnering with the North Carolina Department of Commerce and the Economic Development Partnership of N.C. on this project were the North Carolina General Assembly, the North Carolina Community College System, the North Carolina Department of Transportation, the Appalachian Regional Commission, Duke Energy Carolinas, the Golden LEAF Foundation, Buncombe County, Asheville-Buncombe Technical Community College, the Asheville Area Chamber of Commerce Community Betterment Foundation, and the Economic Development Coalition of Asheville and Buncombe County.

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