General Tobacco Says Yes to Mayodan's Offer

Source from:  Steve Lawson staff writer Sunday, June 24, 2007 06/27/2007

Mayodan officials learned Friday that General Tobacco decided to turn one of the town's empty textile buildings into a state-of-the-art cigarette manufacturing plant. The move will create 200 new jobs and add $55 million to Mayodan's tax base through renovations and new machinery at the former Unifi Plant No. 5 on Ayersville Road. "It means a lot to see manufacturing jobs coming back," said Mayor Jeff Bullins. "When you see the level of investment manufacturing companies bring to a community, it makes it appear they plan to stay around for a while, and that's good for our long-term economic picture." Founded in 1997, Miami-based General Tobacco is the nation's sixth largest tobacco manufacturer, with nearly $400 million in sales for 2006. It is a wholly-owned subsidiary of the Vibo Corp. General Tobacco will transfer production from a plant the company is shutting down in Colombia to the new facility in Mayodan. Although pleased to see one of the town's vacant industrial sites coming back to life, Bullins said the new jobs would truly revitalize the local economy. "I think I might be more excited about the jobs than the increase in our tax base," he said. "From what I've heard, these new manufacturing jobs will pay more than the average wages for our area, and I can't think of better news for our residents." General Tobacco's average weekly wage is expected to be about $750 plus benefits, or $39,000 per year. Rockingham County's current average weekly wage is $550, not including benefits. According to Graham Pervier, president of Rockingham County Partnership for Economic and Tourism Development, General Tobacco is expected to fill 120 production jobs and 20 office and management positions in phase one of its move. Another 60 production jobs are scheduled for hiring in the second phase. Both phases are expected to be completed by the end of 2009. State, county and local officials put together $3.4 million incentives package to attract General Tobacco to the area. Rockingham County commissioners agreed Monday to offer the company $1.7 million in performance-based incentives. Mayodan's council approved a $1.3 million package one week earlier. In addition, Gov. Mike Easley said General Tobacco would receive a $400,000 grant from the One North Carolina Fund, which the governor can provide to existing businesses and new businesses to the state. "North Carolina is committed to continuing to invest in education and workforce development to keep the state a destination for businesses looking to expand and grow," Easley said. Performance-based incentives from the town and county require General Tobacco to invest a total of $55 million in renovations and new equipment and create 200 new jobs in a two-phase project. The incentives would be paid in eight annual installments beginning in 2010, provided all requirements have been fulfilled. General Tobacco's decision makes it the second Florida-based industry to shift operations to Mayodan in the past year. In May 2006, Bridgestone Aircraft Tires announced plans to move its manufacturing facility from Miami to Mayodan. Bullins said the new jobs beginning to fill the once vacant plants are a good sign for the town's future. "We're getting some really good diversification with the new manufacturing companies coming into the former Unifi buildings," he said. "That's a major step toward economic growth for a town that's been hit so hard by textile losses over the past few years." According to J. Ronald Denham, executive vice president and general counsel for General Tobacco, the company hopes to be in operation in Mayodan within 12 months. Denham said the area's historical connection to tobacco made it an ideal location for the company's new manufacturing plant. "North Carolina has always been a leader in tobacco-industry economies," Denham said. "General Tobacco is very pleased to open a state-of-the-art facility in a region that is suited to our needs and long-term goals." General Tobacco said it produces about 11 million cartons of cigarettes a month. Its "value-priced" products are sold worldwide under the brands GT One, Bronco, Silver, Vaquero Little Cigars and 32 Degrees, a menthol product. It also has a low-ignition product that slows the burn speed of cigarettes in an effort to reduce the number of household fires. According to Pervier, General Tobacco distributes cigarettes worldwide, but their primary market is in the Southeast. "They found the tobacco heritage in North Carolina attractive and they certainly hope to hire workers with local tobacco-manufacturing experience," Pervier said. Richard Craver contributed to this article. Enditem