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Nuclear revival bringing 900 jobs: State incentives help GE Hitachi commit to a $704 million expansion of its headquarters near Wilmington
(News & Observer, The (Raleigh, NC) (KRT) Via Acquire Media NewsEdge) May 1--The nation's burgeoning nuclear revival, billed as an answer to global warming, also will fuel massive corporate growth in Wilmington.
GE Hitachi Nuclear Energy, which designs nuclear reactors, said Wednesday that it will swell its ranks with 900 new technical jobs over the next five years at its headquarters, just outside the coastal city.
New Hanover County officials, eager to boost Wilmington's cachet as a nuclear brain trust and economic power, had been courting GE for months to expand at the local site. But the international energy company played the field and evaluated competing sites in South Carolina, Georgia, Mississippi and Illinois.
A lucrative package of tax breaks and other aid tipped the scales in Wilmington's favor, said GE Hitachi President and CEO Jack Fuller.
State and local authorities promised a financial incentive package potentially worth $36.6 million if GE meets hiring targets and deadlines. To qualify for the biggest break -- as much as $25.7 million in cash grants from the state -- GE must retain the new jobs for 12 years as well as keep the 2,300 workers it already has in New Hanover County.
As part of its expansion, GE plans to invest $704 million at its New Hanover County campus and pay average annual salaries of $85,000. The county average wage is $33,226 a year.
"This probably constitutes one of the more significant awards this committee has approved," N.C. Commerce Secretary Jim Fain said after approving the state incentives Wednesday. He predicted the GE Hitachi expansion would have "a significant halo effect" for the economy of the southeastern region of the state.
GE Hitachi's expansion comes amid surging interest in nuclear power, as power companies such as Progress Energy and Duke Energy consider building more than 30 new nuclear reactors nationwide to meet growing electricity demand. Nuclear power plants, which don't emit carbon dioxide gas, have emerged as a leading alternative to coal-burning power plants in the quest to fight global warming.
But nuclear plants remain highly controversial. In addition to lingering anxieties of radiation poisoning, nuclear plants present another quandary: They are massive financial undertakings, costing at least $7 billion per reactor and requiring more than a decade to plan and build.
Still, with a growing worldwide demand for reliable energy, GE Hitachi plans to add manufacturing, training, simulation and testing facilities at its 1,300-acre campus, where it develops advanced nuclear reactors, manufactures nuclear fuel assemblies and performs a full range of nuclear-related services.
GE is in a global race to supply the energy market with a next-generation reactor, now undergoing the final phases of development in Wilmington. The company applied for a federal license for the reactor two years ago and, assuming few glitches, expects to receive a green light in 2010 to market the reactor in this country.
Rival Westinghouse has already won approval from the Nuclear Regulatory Commission for its advanced nuclear reactor. The Westinghouse model has been picked by Progress Energy and Duke Energy, which plan as many as six new reactors in the Carolinas and Florida.
GE Nuclear, founded in 1954 in California, first expanded to Wilmington in 1967 and moved its headquarters there in 2003.
To supply manpower for GE's growing nuclear operations in Wilmington, the company has formed a partnership with the Cape Fear Community College to train technicians in nuclear maintenance and repair. The college program has 65 students and covers tuition and a stipend to students who commit to work for GE for two years after graduation.
Bobby Greer, chairman of the New Hanover County Board of Commissioners, described GE's latest expansion as a financial windfall for the county. He said the company's new construction alone would reap $2.9 million a year in property tax revenue for the county. The 900 highly paid workers are likely to own homes and generate property tax revenue.
County officials agreed to pay GE $10 million over 12 years if the company meets its expansion and hiring targets. The incentive package hasn't been finalized.
"It's like an investment," Greer said. "It's the greatest thing that's ever happened down here."
The nuclear expansion will be a significant economic boost to the Wilmington area, whose low unemployment rate is comparable to the rate in Triangle, traditionally one of the state's economically strongest regions. The Wilmington region's economy is driven by oceanfront tourism and buoyed by major employers such as Verizon Wireless, Corning and drug researcher PPD.
New Hanover County reported a 4.4 percent jobless rate last month, below the state average of 5.2 percent.
"An announcement like this further says to the world that the greater Wilmington area is a serious destination for very serious business," said Scott Satterfield, CEO of Wilmington Industrial Development, a nonprofit economic development organization.
john.murawski@newsobserver.com or (919) 829-8932
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Copyright (c) 2008, The News & Observer, Raleigh, N.C.
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