NC OKs incentives for Sumitomo Forestry plant in Archdale

December 6, 2022

Japanese wood-products maker Sumitomo Forestry is planning a nearly $20 million plant with 129 new jobs in Archdale, and Alamance Foods plans a $42 million expansion and 135 new jobs at its current 815-worker operation in Graham.

The North Carolina Economic Investment Committee on Tuesday morning approved incentives packages for both companies.

 
Sumitomo Forestry plans to build roof and floor trusses and wall panels for houses, apartments and wooden commercial buildings.

The jobs are to pay a minimum of $45,782 a year. The total investment by the company was put at $19.5 million through 2026. Because of uncertainty over supply chain, labor, construction and equipment uncertainty, it asked the N.C. Department of Commerce to consider 2024 as the first year of its five-year project.

Sumitomo Forestry also has to develop an ethics policy as required by the Department of Commerce.

The decision followed approval earlier in the fall of a local incentives package by Archdale City Council and the Randolph County Board of Commissioners. The city pays $128,000 and the county $267,000. In addition, the county would contribute $165,000 and the city $85,000 toward the extension of Roelee Street to serve as the access point to the site

Its state incentive package is valued at an anticipated $2.03 million and includes a Jobs Development Investment Grant, local-infrastructure help in the state utilities fund, community college training, rail and highway assistance through the Department of Transportation, plus a Golden Leaf Foundation grant of $645,000.

The company also considered sites in Maryland and Virginia, according to the Department of Commerce.

The project will increase the state’s economy by $308 million and net state tax revenues $6.2 million, according to Commerce estimates.

Source: Triad Business Journal