Husqvarna Relocating North American Headquarters
Jan 8, 2010
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Husqvarna is opening a new North American headquarters in Charlotte, NC, U.S. The outdoor appliance manufacturer plans to consolidate its Consumer Outdoor Products subsidiary, currently headquartered in Augusta, GA, U.S., with its Professional Products headquarters in Charlotte to form one North American headquarters in Charlotte.
Mike Jones, president of Husqvarna North America/Latin America Sales and Service Division, said the decision to move the headquarters from Augusta was not an easy one. “However, we believe consolidation will produce operational efficiency and synergy across multiple areas, driving increased speed to market for many of our products,” he said.
“We agree with the Governor that Charlotte is one of the top areas of the country to live and work,” Jones continued. “The area has a strong, educated work force and excellent access to transportation. The incentives offered are making the economics of this possible."
The company plans to add 160 workers over the next three years and invest U.S. $2.75 million in the project. The company currently employs 160 workers in Charlotte.
To facilitate the project, the state Economic Investment Committee voted to award a Job Development Investment Grant (JDIG) to Husqvarna. JDIGs are performance-based incentive grants awarded only to new and expanding businesses and industries whose benefits exceed the costs to the state and which would not be undertaken in North Carolina without the grant. Companies receive no up-front funds and must meet job, wage and investment targets to receive grant payments.
Under the terms of the JDIG, Husqvarna is eligible to receive a grant equal to 55 percent of the state personal income withholding taxes derived from the creation of new jobs for each of the nine years in which the company meets annual performance targets. If Husqvarna meets the targets called for under the agreement and sustains them for nine years, the JDIG could yield as much as $2.5 million in maximum benefits for the company.
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