New plant coming to Statesville

By: Bethany Fuller | Statesville Record & Landmark
Published: September 04, 2008

Lured by more than $2.5 million in economic incentives, a Latin American-based company announced plans Wednesday to build its first U.S. manufacturing plant in Statesville.

Providencia USA Inc., a subsidiary of Companhia Providencia Industria e Comercio in Brazil, will invest at least $133 million during the next five years.

The plant will employ 90 workers, who will earn an average salary of $41,835, excluding benefits, according to Gov. Mike Easley's office. The average annual salary in Iredell County is $34,580.

Construction is scheduled to begin immediately and will be completed in early 2009.

"From an announced investment standpoint, this is the largest in the community since 1988," said Mike Smith, executive director of the Greater Statesville Development Corp.

Smith said the company considered locations in two other states before choosing Statesville.

"Providencia's decision to establish itself in North Carolina was based on the state's excellent quality of life, skilled workforce, pro-business environment and its location central to our target markets," said CEO Herminio V.S. de Freitas said in a statement.

The company plans to construct its manufacturing facility in the West Farm Industrial Park, where polypropylene pellets will be melted and formed into thin, lightweight nonwoven sheeting used in the production of personal hygiene items, medical and surgical supplies and other consumer goods.
Providencia USA Inc. received a $2.5 million in incentives from Iredell County and a $56,000 grant from One North Carolina Fund.

Iredell County officials were kept in the dark about the company's name until recently, referring to it as "Project SAK," County Manager Joel Mashburn said.

"We knew everything except the name," he explained. "We were advised we could hold our hearings on an undisclosed name by the County Attorney Bill Pope."

Commissioner Steve Johnson confirmed that all the negotiations were conducted under the assumed name.

"When they said $120 million, I didn't care if they made moonshine," he said.

Iredell County and the City of Statesville entered into an agreement to purchase 43 acres of land in the West Farm Industrial Park. They will gradually resell the land to the company over the next six years.

Mashburn said the county would withhold a portion of the company's incentive check each year as payment for the land.