FOREIGN DIRECT INVESTMENT IN NORTH CAROLINA
A N OV E RV I E W O F
THE ECONOMIC DEVELOPMENT PARTNERSHIP OF NORTH CAROLINA
JUNE 2017
THE ECONOMIC DEVELOPMENT PARTNERSHIP OF NORTH CAROLINA
FOREIGN DIRECT INVESTMENT IN NORTH CAROLINA
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INTRODUCTIONOver the last 10 years, more than 560 international compa-nies have put down roots in North Carolina, investing over $14 billion dollars and creating almost 50,000 jobs. These companies found North Carolina to be a land of low-costs and high opportunity—furthered by hardworking, well-trained people, a welcoming business and regulatory environment, and a state-wide community that’s committed to helping in-ternational businesses succeed in North Carolina.
$14,639 BILLION
49,786 NEW JOBS
A note on our methodology: We wrote this report using data from two sources. The first is FDIMarkets, a third-party da-tabase of major investment projects that aggregates project information from sources like news reports and press releas-es. We then cross-referenced FDIMarkets with information from North Carolina’s Community Investment Report, a da-tabase which contains economic development project data for the state. Jobs and investment amounts are modeled in cases where the project scope is confidential or unknown.
INVESTED BY FDI 2007 - 2016 CREATED BY FDI 2007 - 2016
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Top Countries Investing in North Carolina
2 3
4 5 6
7 8
GERMANY$3B invested12,052 jobs114 companies
JAPAN $1.8B invested5,265 jobs53 companies
CANADA$1.6B invested5,177 jobs55 companies
DENMARK$1.4B invested1,420 jobs10 companies
SWITZERLAND$1.2B invested3,729 jobs31 companies
UNITED KINGDOM$1.1B invested4,712 jobs73 companies
ITALY$751M invested2,717 jobs29 companies
CHINA$536M invested1,842 jobs30 companies
9
10 11 12
ISRAEL$526M invested867 jobs15 companies
FRANCE$360M invested1,388 jobs15 companies
SWEDEN$333M invested1,420 jobs18 companies
SPAIN$314M invested662 jobs7 companies
Ranked by Total Capital Investment 2007 - 2016
1
STRENGTH IN DIVERSITYBusinesses representing more than 40 different countries and 35 different industries have established operations in North Carolina.
THE ECONOMIC DEVELOPMENT PARTNERSHIP OF NORTH CAROLINA
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Top FDI Industries in North Carolina
05 00 1000 1500 2000 2500
Biotechno logy
Plastics
Automotive OEM
Consumer Products
Paper, Printing & Packag ing
Electronic Component s
$754 Million
$1.02 Billion
$1.5 Billion
$2.1 Billion Phar maceut icals
Automotive Components
Textiles
Chem icals
Alternative Ener gy
Industrial Machinery
Rubbe r
$736 Million
$731 Million
$685 Million
$641 Million
$567 Million
$537 Million
$537 Million
$435 Million
$456 Million
$685 Million
$456 Million
$478 Million
Spotlight: Novo Nordisk’s near $2B Expansion in North Carolina
In Aug. 2015, Novo Nordisk, a Danish man-ufacturer of insulin and related products, an-nounced plans to build a new facility next to its existing plant in Clay-ton, North Carolina, a $1.2 to $1.7 billion invest-ment. This will nearly double Novo Nordisk’s presence in North Carolina, enabling the company to produce active ingredients for its diabetes care products. Previously, these ingre-
preferred location,” said Jesper Høiland, Presi-dent of Novo Nordisk Inc. USA and Executive Vice President Novo Nordisk A/S. “We already have a large and very profes-sional organization here,
Total Capital Investment 2007 - 2016
dients were manufac-tured only in Denmark. The decision came down to the strong part-nership Novo Nordisk has formed with state and local leaders, and the quality of the local workforce. “For some time, we have been evaluating several options to bring more capacity into the U.S....after a thorough evaluation of multiple sites and an extensive vetting process, Clay-ton ended up being our
and have been impressed by the excellent collabo-ration we have had with this city, county and state leadership, and appreci-ate the incentives they have secured in con-nection with this invest-ment.”
0 500 1000 1500 2000 2500
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BETTER BUSINESS HAPPENS HEREFrom manufacturing to marketing, with 58 community colleges and one of the most renowned public university systems in the country, North Carolina has the talent busi-nesses need today, and workforce development resources for the future.
MANUFACTURING25,567 jobs HEADQUARTERS
8,277 jobs
LOGISTICS, DISTRIBUTION & TRANSPORTATION3,267 jobs
DESIGN, DEVELOPMENT & TESTING 4,241 jobs
SHARED SERVICES CENTER926 jobs
CUSTOMER CONTACT CENTER1,255 jobs
RESEARCH & DEVELOPMENT1,667 jobs
BUSINESS SERVICES2,700 jobs
SALES, MARKETING & SUPPORT2,852 jobs
TECHNICAL SUPPORT CENTER485 jobs
Job Creation via FDI in North CarolinaRanked by total number of jobs committed through FDI projects 2007 - 2016
Imagine this: A com-
pletely fresh take on the
entry-level business jet,
featuring a unique over-
the-wing engine mount,
lightweight composites
and an aerodynamic
design which allows it to
fly faster, higher, quieter
and more efficiently than
any jet in its class. Add
sporty styling and a spa-
cious, comfortable cabin
that can be configured
for up to six passengers
and you’ve got the ulti-
mate balance of innova-
tion and inspiration.
This is the HondaJet,
an aviation dream first
sketched out in 1997
by Michimasa Fujino,
now President and CEO
of Greensboro, North
Carolina-based Honda
Aircraft Company, and
regarded today as the
world’s most advanced
light jet.
Fujino’s team at what
was then Honda R&D
Americas arrived in
North Carolina nearly
two decades ago to turn
dream into reality. The
HondaJet’s journey from
design to prototype to
production is a story of
innovation brought to
life with the support of
North Carolina’s skilled
manufacturing workforce
and strong public and
private partnerships.
To design and test the
prototype, Honda R&D
Americas opened a re-
search center at Greens-
boro’s Piedmont Triad
International Airport in
2000. In 2007, four years
after the first test flight
of the HondaJet and one
year after Honda Aircraft
was formed to produce
and market the jet, the
company decided to add
a world headquarters
and production facility to
the existing airport cam-
pus. It’s been expanding
ever since.
The HondaJet maker’s
positive experience in
North Carolina reflects
the broader story of its
parent company. In fact,
the American Honda
Motor Company found
North Carolina so much
to its liking that it has
four subsidiary facilities
in the state – including
Honda Aircraft– with
2,500 associates com-
bined.
North Carolina filled
several key needs for
Honda Aircraft:
• Close proximity to an
airport for flight tests
and convenient access to
end markets.
• A skilled workforce
that could meet the
demands of an advanced
manufacturing operation
now and in the future.
• Strong support from
state and local partners.
“When we entered
the stage of this proj-
ect where it was time
to transition from re-
search and prototype
development to actu-
al production of the
HondaJet, we looked at
locations everywhere,
including Seattle, Texas
and Atlanta,” said Fujino.
“Overall, North Carolina
and Greensboro met our
criteria best.”
Since Honda Aircraft’s
formation in 2006, the
company has invested
$160 million in Greens-
boro and now employs
more than 1,700. Honda
Aircraft’s experience is a
case study in how com-
panies are able to find
the right combination of
resources they need to
succeed in North Car-
olina – however unique
their needs might be.
For companies seek-
ing sites for advanced
HONDA AIRCRAFT COMPANY & NORTH CAROLINA:
ALLIES IN INNOVATION
© HONDA AIRCRAFT COMPANY, 2017
THE ECONOMIC DEVELOPMENT PARTNERSHIP OF NORTH CAROLINA
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manufacturing opera-
tions, Greensboro is the
nation’s low-cost leader,
according to The Boyd
Company, a national site
selection consultant. But
a skilled, high-quality
workforce capable of
keeping Honda Aircraft
on the leading edge of
innovation was near the
top of Honda’s list.
Fujino emphasizes the
importance of its part-
nership with Guilford
Technical Community
College (GTCC), which
developed programs to
train prospective Hon-
da Aircraft technicians
and is currently working
to expand its avionics
program. The state and
county have support-
ed GTCC in expanding
its programs to grow
the emerging aero-
space industry cluster in
Greensboro and Guilford
County as well as other
companies involved in
advanced manufactur-
ing. Across the state,
community colleges
have provided training
programs for aircraft
technicians and avionics
experts.
Honda Aircraft also
relies on North Carolina’s
most prestigious univer-
sities, including nearby
Duke University, the
University of North Car-
olina-Chapel Hill, North
Carolina State University
and North Carolina A&T
State University – as a
pipeline of talented inno-
vators and for its intern-
ship and co-op program.
“Companies like Honda
Aircraft need to know
that you’ll have the
When we entered the stage of this project where it was time to transition from research and pro-totype development to actual production of the HondaJet, we looked at locations everywhere. Overall, North Carolina...met our criteria best.
— Michimasa Fujino,President & CEO, HondaJet
skilled workforce they
need on Day 1, but they
also need to know that
you’ll have the workforce
they need on Day 5,001,”
said Brent Christensen,
President and CEO of
the Greensboro Cham-
ber of Commerce. “Here
in North Carolina, we
understand what com-
panies need to succeed
and we are meeting their
needs.”
Piedmont Triad Inter-
national Airport (PTI)
has been an equally
committed partner. With
support from the North
Carolina Department of
Transportation, the air-
port stepped up to make
needed improvements
to the site for Honda
Aircraft’s campus, and
extended taxiways for
runway access. From a
big-picture perspective,
PTI is working diligently
to make the airport an
attractive site for other
aviation and aerospace
operations, an effort that
includes adding 800-
1,000 acres of available
land adjacent to the
airport.
Providing the resources
to help Honda Aircraft
thrive was a broad-based
effort involving a pack-
age of grants and tax-
based incentives from
the State of North Car-
olina, local communities
and county government,
and even private-sec-
tor contributions from
a major North Carolina
corporate partner, Duke
Energy, which supported
GTCC’s training pro-
grams.
“This has been a great
partnership between
the company and the
community in building
aircraft right here in Guil-
ford County,” said Chris-
tensen. “It truly has been
a multi-level effort.”
Companies like Honda
Aircraft also care about
another important site
selection factor: North
Carolina’s natural beauty
and its appeal as a great
place to live, work and
play.
“North Carolina has a
terrific quality of life,”
said Fujino. “We’re a
short drive from the
mountains and the
beaches, we enjoy four
seasons, a low cost of
living, great schools and
many of the amenities
families want.”
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This will be our fourth plant in North Carolina, an area where we have
thrived thanks to a fantastic workforce and a great business
environment.
— Linda Hasenfratz,CEO, Linamar Corporation
Business Investment in North Carolina
C A N A D A
In the last five years, Canadian companies have invested
WiserTrade 2016 trade data
in North Carolina and announced
$1.1B I L L I O N
3,000N E W J O B S
Imports (Canada to North Carolina) Total: $3.36B
Industrial Machinery $406M
$1.28B
Plastics $382M
$1.09B
Pharmaceutical $291M
$660M
Industrial Machinery
Vehicles and Parts
Pharmaceutical Products
Exports (North Carolina to Canada) Total: $3.38B
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in North Carolina and announced
$459M I L L I O N
1,430N E W J O B S
North Carolina is a fantastic place for our business because of its cluster of raw-material suppliers, well-trained
workforce and business-friendly environment.
— Hancy Cheng,CEO, U-Play Corporation
Business Investment in North Carolina
C H I N A
Since 2012, Chinese companies have invested more than
WiserTrade 2016 trade data
Imports (China to North Carolina) Total: $10.2B
Industrial Machinery $2.9B
$341M
Electric Machinery $1.3B
$223M
Furniture $946M
$223M
Electric Machinery
Industrial Machinery
Wood Pulp
Exports (North Carolina to China) Total: $2.1B
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We are thrilled to put down roots in the U.S., and
particularly in this area that is so rich with culture and innovation... We are
so pleased to be here.
— Alain Wilmouth,CEO, 2CRSI
Business Investment in North Carolina
F R A N C E
Since 2012 French companies have invested
WiserTrade 2016 trade data
in North Carolina and announced
$70M I L L I O N
300N E W J O B S
Imports (France to North Carolina) Total: $1.83B
Industrial Machinery $976M
$793M
Organic Chemicals $139M
$100M
Manufactured Articles $125M
$47M
Aircraft, Spacecraft and Parts
Industrial Machinery
Misc. Chemical Products
Exports (North Carolina to France) Total: $1.19B
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Business Investment in North Carolina
G E R M A N Y
In the last five years, German companies have invested
WiserTrade 2016 trade data
in North Carolina and announced
$1.3B I L L I O N
5,400N E W J O B S
Imports (Germany to North Carolina) Total: $1.7B
Pharmaceutical Products $1.1B
$200M
Industrial Machinery, including Computers $338M
$122M
Organic Chemicals $266M
$104M
Industrial Machinery
Pharmaceutical Products
Electric Machinery
Exports (North Carolina to Germany) Total: $426M
Our new US HQ will combine the strength of American and German engineering. For us,
[North Carolina] provides an experienced and skilled
workforce and the ideal business environment for our
investment.— Martin Bayer,
CEO, RAUMEDIC
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It was a combination of decisions [that brought Shalag
to Oxford, N.C.], mostly because of the distance to our
existing customers in North America. The area was certainly a good point for importing the raw material — fibers — and for
transportation.
— Jeff Harari,CEO, Shalag USA
Business Investment in North Carolina
I S R A E L
Since 2012, Israeli companies have invested more than
WiserTrade 2016 trade data
$305M I L L I O N
Imports (Israel to North Carolina) Total: $229M
Plastics $51M
$25M
Wadding, Yarn, Twine $28M
$17M
Electric Machinery $25M
$14M
Industrial Machinery
Pharmaceutical Products
Essential Oils
Exports (North Carolina to Israel) Total: $130Min North Carolina and announced
300N E W J O B S
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We are happy to build our new manufacturing operation
in [North Carolina] where, thanks to the local authorities
support, we have identified the ideal conditions to run our
USA business.
— Davide Braida,President & CEO, Nutkao USA
Business Investment in North Carolina
I T A L Y
In the last five years, Italian companies have invested
WiserTrade 2016 trade data
in North Carolina and announced
$400M I L L I O N
930N E W J O B S
Imports (Italy to North Carolina) Total: $1.01B
Industrial Machinery $480M
$45M
Pharmaceutical Products $374M
$29M
Special Classification Provisions $157M
$16M
Industrial Machinery
Wood Pulp
Wood and Articles of Wood
Exports (North Carolina to Italy) Total: $90M
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I am very fortunate that we found a place and a people who share our vision and our values.
This is a place with a long term vision for economic
growth and prosperity
— Michimasa Fujino,President & CEO, HondaJet
Business Investment in North Carolina
J A P A N
Since 2007, Japanese companies have invested more than
WiserTrade 2016 trade data
in North Carolina and announced
$1.7B I L L I O N
5,200N E W J O B S
Imports (Japan to North Carolina) Total: $2.8B
Industrial Machinery $1.24B
$387M
Electric Machinery $407M
$242M
Vehicles and Parts $236M
$140M
Pharmaceutical Products
Tobacco
Industrial Machinery
Exports (North Carolina to Japan) Total: $1.5B
© HONDA AIRCRAFT COMPANY, 2017
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Grifols’ roots run deep in North Carolina...North
Carolina has provided the talented, educated professionals who are
dedicated to helping our company grow.
— Sergi RouraPresident, Grifols
Business Investment in North Carolina
S P A I N
Since 2007, Spanish companies have invested over
WiserTrade 2016 trade data
in North Carolina and announced
$314M I L L I O N
Imports (Spain to North Carolina) Total: $150M
Industrial Machinery $81M
$122M
Pharmaceutical Products $41M
$62M
Electric Machinery $28M
$19M
Pharmaceutical Products
Aircraft, Spacecraft, and Parts
Electric Machinery
Exports (North Carolina to Spain) Total: $203M
662N E W J O B S
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“We are excited to be moving our North American
headquarters to North Carolina. The state’s leading position in
respiratory disease research and commercialization of cutting
edge products was critical in our decision to locate our business in
North Carolina.
— Chip Neff,President, Aerocrine Inc.
Business Investment in North Carolina
S W E D E N
Since 2005, Swedish companies have invested more than
WiserTrade 2016 trade data
in North Carolina and announced
$200M I L L I O N
4,200N E W J O B S
Imports (Sweden to North Carolina) Total: $176M
Industrial Machinery $122M
$31M
Pharmaceutical Products $34M
$13M
Vehicles and Parts $20M
$12M
Aircraft, Spacecraft & Parts
Industrial Machinery
Wood Pulp
Exports (North Carolina to Sweden) Total: $55M
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North Carolina is a leader in agricultural
biotechnology, and close ties with academic and
research institutions provide an environment that fosters innovation.
— Michiel van Lookeren Campagne,President, Syngenta Biotechnology
Business Investment in North Carolina
S W I T Z E R L A N D
In the last five years, Swiss companies have invested
WiserTrade 2016 trade data
in North Carolina and announced
$493M I L L I O N
1,500N E W J O B S
Imports (Switzerland to North Carolina) Total: $745,905,177
Pharmaceutical Products $384,649,505
$54,217,840
Industrial Machinery, including Computers $92,427,172
$39,448,317
Organic Chemicals $65,156,975
$12,352,279
Tobacco and Manufactured Tobacco Substitutes
Essential Oils, Perfumery, Cosmetics
Industrial Machinery, including Computers
Exports (North Carolina to Switzerland) Total: $141,870,303
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“GKN Driveline is a global leader in the automotive industry and our innovative all-wheel drive
and eDrive technologies position the company for growth in the coming years. North Carolina is
an important part of our strategy, with strategically located facilities
and an outstanding workforce.”
— Phil Swash,CEO GKN Driveline
Business Investment in North Carolina
U N I T E D K I N G D O M
Since 2012, UK companies have invested more than
WiserTrade 2016 trade data
in North Carolina and announced
$405M I L L I O N
2,800N E W J O B S
Imports (United Kingdom to North Carolina) Total: $2.01B
Pharmaceuticals $1.4B
$171M
Industrial Machinery $399M
$147M
Organic Chemicals $217M
$60M
Industrial Machinery
Pharmaceutical Products
Special Classification Provisions
Exports (North Carolina to United Kingdom) Total: $378M
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The Economic Development Partnership of North Carolina helps companies navigate the process of relocating or expanding their business to North Carolina.
We provide FREE assistance with:
Richard MinorVP, Business DevelopmentEconomic Development Partnership of North Carolina+1 (919) 447 - [email protected]
Korey HowardSenior Manager, International Business DevelopmentEconomic Development Partnership of North Carolina+1 (919) 447 - [email protected]
• Real estate and site identification
• Incentives and tax benefit inquiries
• Regulatory navigation
• Export services and global market expansion
• Supplier and distribution connections
• World-class workforce solutions
Low Risk
One of only three states to earn Standard & Poor’s highest rating for 50 consecutive years.
AAABOND RATING
High SkillsNorth Carolina offers one of the nation’s most renowned education systems, supplying companies a pipeline of skilled workers
• 53 colleges and universities, including three Tier 1 research universities
• Nationally recognized, 58-campus community college system
• 108,000+ post-secondary degrees awarded in 2014
#1 #2 #3
Best State for Business Best Labor ClimateLowest State & Local Business
Tax Burden in the U.S.(2016)(2016)
(2016)
What Can We Do For You? Contact EDPNC
Low Cost
North Carolina’s industrial electricity costs run nearly 6% less than the U.S. average.
U.S. Average
North Carolina6.51¢/kw hr
6.91¢/kw hr
6.0 6.2 6.4 6.6 6.8 7.0 7.2
NORTH CAROLINA’S INVESTMENT ADVANTAGE
THE ECONOMIC DEVELOPMENT PARTNERSHIP OF NORTH CAROLINA
@ e d p n c /c o m p a n y/e d p n c/ N C E c o n o m i c D e v e l o p m e n t / @ e d p n c