Albaad USA Approved For $2.3M In Incentives

The Israel-based company is creating 302 new jobs and investing $45 million in Rockingham County, NC.


https://businessfacilities.com/2018/07/albaad-usa-approved-2-3m-incentives/
The Israel-based company is creating 302 new jobs and investing $45 million in Rockingham County, NC.
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Albaad USA Approved For $2.3M In Incentives

The Israel-based company is creating 302 new jobs and investing $45 million in Rockingham County, NC.

Albaad USA Approved For $2.3M In Incentives

Rockingham County, NC and city of Reidsville recently approved a total of $2.3 million in incentives for Albaad USA’s expansion in North Carolina. Rockingham County will provide a total post-performance incentive to Albaad of $1.2 million to be paid out in annual installments in five phases over a 12-year span, and the city up to $1.1 million. The company must first meet the investment and job requirements for each phase to receive payments.

Rockingham County, NC
In April, Albaad USA announced it would create 302 new jobs and invest
$45 million in Rockingham County, NC.

Albaad USA announced its expansion plans in April, which include creating 302 new jobs and investing $45 million in its existing facility on Technology Drive and also moving into a second location at the former Ball Corp. plant. Albaad USA is a multinational manufacturer of wet wipes and other hygiene products. The expansion will enable the company to produce additional lines of personal care products in Rockingham County.

“Rockingham County is excited to have Albaad USA expand here. The teamwork and collaboration of the City of Reidsville, the county and state were instrumental in landing this expansion,” said Kevin Berger, chairman of the Rockingham County Board of Commissioners. “Albaad has been a good corporate citizen in Rockingham County and we are happy to take this next step in the process to move this expansion along.”

“We are so thrilled to see Albaad, which is a large, global company, investing in our community,” said Jan Critz-Yokeley, director of the Rockingham County Center for Economic Development, Small Business & Tourism. “The company had the choice to locate this expansion elsewhere but thankfully they chose Reidsville. The local leadership team at Albaad has been a great partner to Rockingham County and Reidsville and we look forward to their continued success here.”

The Reidsville City Council is also considering a performance agreement with Albaad USA. Incentives are “performance based” meaning the company must first meet investment and job targets before it receives any payments.  If the company’s investment and job targets are not met each year, the amount of the scheduled incentive payments will be reduced proportionately. The incentives will be funded from the net new taxable value of their investment.

Albaad USA is a wholly owned subsidiary of Albaad Holdings, with headquarters in Israel.  The company has manufacturing facilities in Israel, Germany, Poland, and the U.S where it produces products in two broad categories, wet wipes and feminine hygiene.

“We are very pleased to continue expanding our Albaad USA business in Reidsville,” said Gidi Tenne, Plant Manager for Albaad. “We continue to build on a great workforce, culture and community that supports advanced manufacturing jobs in Rockingham County. This merging of technology and a strong, creative workforce is the foundation of our success and we look forward to continued growth in the future.”

“In 2004, I was part of the team that recruited this outstanding Israeli company to North Carolina,” said North Carolina Commerce Secretary Anthony M. Copeland. “It’s been a great pleasure to watch their growth over the years, and we congratulate Albaad as they expand and add jobs once again.”

In addition to the local performance incentives, the North Carolina Department of Commerce and the Economic Development Partnership of North Carolina (EDPNC) are supporting the company’s expansion. Albaad will receive a Job Development Investment Grant (JDIG). Over the course of the 12-year term of this grant, the project will grow the state’s economy by an estimated $810 million. 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 $3.7 million, 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. 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.

Rockingham County is classified by the state’s economic tier system as Tier 2, so the company’s JDIG agreement also calls for moving nearly $410,000 into the state’s Industrial Development Fund – Utility Account. This account helps rural communities finance necessary infrastructure upgrades to attract future business. When new jobs are created in a Tier 2 county such as Rockingham, the new tax revenue generated through JDIG grants helps more economically challenged communities elsewhere in the state.

Relocating or Expanding Your Business In North Carolina

Considering North Carolina for your company’s relocation or expansion project? Check out Business Facilities’ North Carolina Incentives and Workforce Development Guide.

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