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Tuesday, April 23, 2024

Siemens to expand in North Carolina, add 559 jobs

Siemens Energy announced Tuesday that it would expand its operations in North Carolina and add 559 jobs.

The company will build a manufacturing site in Mecklenburg County for large power transformers — its first such plant in the United States. The expansion also adds positions to the company’s engineering operations in Wake County.

The project is expected to create up to 475 direct operating jobs and 285 construction jobs in Charlotte and an additional 84 jobs for the Raleigh location.

Siemens Energy has been operating in the United States for more than 100 years and currently has 21 manufacturing and service facilities and more than 10,000 employees in the country, with more than 1,250 based in Charlotte.

“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, in a statement. “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.”

The overall Siemens company, which is based in Munich, Germany, has more than 3,500 employees throughout North Carolina. The state is home to the Smart Infrastructure Distribution Systems headquarters, a manufacturing and R&D hub for eMobility, the Charlotte Advanced Technology Collaboration Hub (CATCH), and soon an East Coast rail manufacturing hub for Siemens Mobility in Lexington.

The Siemens Charlotte energy hub is the company’s worldwide hub for 60 Hz power generating equipment. Opened in 1969, the facility manufactures and services generators and steam turbines for the power generation market.

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 will be facilitated, in part, by a Job Development Investment Grant approved by the state’s Economic Investment Committee earlier Tuesday. 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 agreement authorizes the potential reimbursement to the company of nearly $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.

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.

Chris Roush
Chris Roush
Chris Roush is executive editor of Business North Carolina. He can be reached at croush@businessnc.com.

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