Eli Lilly selects North Carolina for plant, creates 460 jobsChristian Fernsby ▼ | January 23, 2020
Eli Lilly and Company will invest over $470 million and create more than 460 new jobs in Durham, North Carolina.
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This new manufacturing site will be a state of the art facility that produces parenteral (or injectable) products and delivery devices.
To operate the site, Lilly will create more than 400 jobs in highly skilled positions such as scientists, engineers, quality professionals and manufacturing operations.
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 position, the average salary for all the new positions will exceed $72,000, which is greater than the current average wage in Durham County of $71,756.
Lilly'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 $4.1 billion.
Using a formula that takes into account the new tax revenues generated by the 462 new jobs, the JDIG agreement authorizes the potential reimbursement to the company of up to $8,689,500, spread over 12 years.
The company's JDIG agreement lists its investment target as $474 million.
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.
Because Lilly chose a site in Durham County, classified by the state's economic tier system as Tier 3, the company's JDIG agreement also calls for moving as much as $2,896,500 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 Durham, the new tax revenue generated through JDIG grants helps more economically challenged communities elsewhere in the state.
Partnering with N.C. Commerce and the Economic Development Partnership of N.C. on this project were the North Carolina General Assembly, the North Carolina Community College System, the North Carolina Biotechnology Center, Durham County, the Greater Durham Chamber of Commerce and Duke Energy. ■