Siemens Energy, Inc., one of the world’s leading energy technology companies and a long-standing North Carolina employer will expand its operations in the state, creating a total of 559 jobs, Governor Roy Cooper announced today. The project brings an investment of $149.8 million and will establish in Mecklenburg County the company’s first manufacturing site in the United States to build Large Power Transformers (LPTs), a critical component of the nation’s power grid. The expansion also adds positions to the company’s engineering operations in Wake County.
“Siemens Energy is bringing even more great energy manufacturing jobs to the Charlotte community, and this latest expansion demonstrates once again their confidence in our state and its outstanding workforce,” said Governor Cooper. “Bringing production of these high voltage transformers onshore not only creates American jobs but makes our electric grid more resilient and ready for the transition to clean energy.”
Siemens Energy has been operating in the United States for more than 100 years and currently has 21 manufacturing and service facilities and upwards of 10,000 employees in the country, with more than 1,250 of those currently based in Charlotte. Siemens Energy covers almost the entire energy value chain from power generation and transmission to storage, including conventional and renewable energy technology, such as wind, gas and steam turbines, hybrid power plants operated with hydrogen, and power generators and transformers. Siemens Energy’s project in North Carolina will establish the company’s first power transformer manufacturing facility in the United States. The Mecklenburg County facility will join the company’s fleet of power transformer factories throughout the world, expanding Siemens Energy’s global leadership in the manufacturing of high-voltage power transformers. The company will also expand its existing Grid Technology engineering operations in Wake County, which provides engineering and related professional services.
“Manufacturing large power transformers in the United States will strengthen and expand our electrical grid to incorporate more renewable energy and meet growing energy demand,” said Tim Holt, Member of the Executive Board of Siemens Energy. “We are excited to do that in Charlotte, North Carolina where our existing factory and incredible team is answering the call of our customers and policymakers to help protect our nation’s energy and national security.”
As Americans need more and more electricity to power their lives, more equipment – from turbines to transformers and everything in between – will be needed. Siemens Energy sees current and future demand for large power transformers in the U.S. to enable the transmission of electricity over long distances and stabilize electrical transmission across regions.
“I’m excited to see this expansion by Siemens Energy, one of North Carolina’s most important existing manufacturing companies,” said North Carolina Commerce Secretary Machelle Baker Sanders. “Our state will continue to invest in the programs and tools that pay off in new jobs and private-sector investments, such as our world-class workforce development and training programs that win acclaim around the world.”
The North Carolina Department of Commerce led the state’s support for the company during its site evaluation and decision-making process.
Although wages will vary depending on the position, the average salary for the new positions in Mecklenburg County will be $87,036. The current average wage in Mecklenburg County is $84,797.
Siemens Energy’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, the project is estimated to grow the state’s economy by $1.63 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 $6,979,500, spread 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.
The project’s projected return on investment of public dollars is 118 percent, meaning for every dollar of potential cost to the state, the state receives $2.18 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 Siemens Energy chose a site in Mecklenburg County, classified by the state’s economic tier system as Tier 3, the company’s JDIG agreement also calls for moving $2,326,500 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 Mecklenburg, the new tax revenue generated through JDIG grants helps more economically challenged communities elsewhere in the state.
“We welcome this new advanced manufacturing operation to our community,” said N.C. Senator DeAndrea Salvador. “Siemens Energy is one of our top corporate citizens and their vote of confidence in Mecklenburg County, the City of Charlotte, and in North Carolina makes us very happy.”
“”I’d like to thank everyone that helped make this move a reality. This facility will be a historic investment in our energy and manufacturing economy,” said N.C. Representative Terry Brown Jr. “This manufacturing facility establishes that Siemens Energy sees the Steele Creek Community and Mecklenburg County as an integral partner, and we will all help Siemens Energy enjoy even more success in North Carolina.”
The Economic Development Partnership of North Carolina would like to recognize the North Carolina Department of Commerce as well as other key partners involved in this project, including the North Carolina General Assembly, the North Carolina Community College System, Commerce’s Division of Workforce Solutions, the North Carolina Railroad Company, Duke Energy, Mecklenburg County, the City of Charlotte, the Mecklenburg County Economic Development Office, and the City of Charlotte Economic Development Department.