Press Release
Governor Roy Cooper announced SBA Home, a furniture manufacturer, will create 250 jobs in Davie County. The newly created company says it will invest more than $70 million to establish its first North American furniture production facility in the Town of Mocksville.
“SBA Home has made a great decision to enter the U.S. market in Davie County,” said Governor Cooper. “With more than 800 furniture companies, North Carolina’s reputation as the furniture capital of the world attracts growing manufacturers that need a world class workforce to meet the demand of their global customers.”
SBA Home is the largest division of SBA Grupe UAB, a Lithuanian conglomerate, that exports furniture to 50 different countries around the world. After more than 20 years, the company has grown to employ more than 3,000 employees in a four manufacturing facilities and distribution center in Lithuania. This new location will be a 500,000-square-foot innovative production facility to manufacture and distribute trendy furniture products to meet the demand of its U.S. customer bases.
“We are excited to launch our journey in the United States, starting in North Carolina—a state renowned for its dynamic business environment and exceptional opportunities for globally growing companies,” said Jurgita Radzevičė, CEO of SBA Home. “With its wide talent pool, excellent infrastructure and logistics, support from the State, combined with SBA Home’s modern manufacturing expertise and humancentric organizational culture, we are confident this venture will create high-quality jobs and give positive impact to the region. We believe it further bolsters partnership between Lithuania and the United States, paving the way for innovation and shared success.”
“When they choose to expand into new markets, international companies want to operate in the best state in America,” said N.C. Commerce Secretary Machelle Baker Sanders. “I envision a North Carolina that continues to be first in talent and innovation as we welcome industry game changers into our business community and create an economy that works for every North Carolinian.”
New positions created by the company include manufacturing and warehousing positions, as well as administrative and managerial roles. These new jobs could create a potential payroll impact of more than $13.3 million each year for the region.
SBA Home’s project in North Carolina, which will officially be executed through a newly formed subsidiary company, will be facilitated, in part, by a Job Development Investment Grant (JDIG), which was 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 $435.8 million. Using a formula that takes into account $50 million of the company’s investment as well as the new tax revenues generated by the new jobs, the JDIG agreement authorizes the potential reimbursement to the company of up to $1,421,250, 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 51 percent, meaning for every dollar of potential cost to the state, the state receives $1.51 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 SBA chose a site in Davie County, classified by the state’s economic tier system as Tier 3, the company’s JDIG agreement also calls for moving $473,375 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 Davie, the new tax revenue generated through JDIG grants helps more economically challenged communities elsewhere in the state.
“This announcement is outstanding news for Davie County and the entire state of North Carolina,” said N.C. Senator Steve Jarvis. “The company will join the ranks of the region’s finest furniture makers that enjoy a strong supply chain and great quality of life when they invest in our community.”
“We are excited to welcome SBA Home to the Town of Mocksville,” said N.C. Representative Julia C. Howard. “Our transportation infrastructure and central East Coast location are great advantages for the company as it expands its global footprint in the United States.”
Partnering with the North Carolina Department of Commerce and the Economic Development Partnership of North Carolina on this project were the North Carolina General Assembly, North Carolina Community College System, Davidson-Davie Community College, Davie County, Davie County Schools, Davie County Economic Development and the Town of Mocksville.
Comments