The Chinese parent of Denver Global Products Inc. announced this week that it plans to build a $30.2 million plant for manufacturing, distribution and research and development in Lincoln County, on the west side of Lake Norman.
The company currently has 27 workers at the site on North Pilot Knob Road, but expects to employ 450 when the plant is completed.
Denver Global is a subsidiary of Chongqing RATO Power Co. Ltd. Officials said they’re giving the company a state Job Development Investment Grant, which requires Denver Global to meet its pledge for jobs and investment.
It was the latest in a series of economic development announcements in the past two years that happened with the help of public financial incentives. In June, MSC Industrial Direct Co. picked Davidson as the site of a $31 million headquarters, a deal that came with about $14 million in incentives.
And Switzerland-based ABB Inc. recently began production at its $90 million Huntersville cable manufacturing plant. The company said it chose Huntersville’s Commerce Station in part because of more than $2.5 million in grants, including a Job Development Investment Grant.
“North Carolina continues to be a top choice for companies looking to establish advanced manufacturing as well as research and development facilities,” Gov. Beverly Perdue said in a statement Monday. “This proves how important our investment in education and infrastructure is, and that it’s resulting in good jobs for North Carolinians.”
Denver Global was incorporated in North Carolina in 2010, and acquired by Chongqing RATO Power in January 2012. RATO, based in Chongqing, China, manufactures and distributes thermo-power products and general-purpose engines for all-terrain vehicles, motorcycles, water pumps and generators. The Lincoln County plant will include administrative sales, manufacturing, distribution, and research and development operations.
The company said wages for the 450 jobs will vary, but the average annual payroll will be more than $13.4 million.
Under terms of the job development grant, Denver Global gets back up to 60 percent of N.C. personal income withholding taxes from the new job over 10 years, provided it creates the jobs promised and meets other targets. The grant’s value could reach $2.7 million, state officials said.
More about Denver Global Products: www.denverglobal.com.