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County approves incentives packages

Friday, November 7, 2008
(Updated 9:38 pm)

GREENSBORO — The Guilford County Board of Commissioners approved $446,000 in incentives Thursday in hopes that a total of 172 jobs would locate here.

Both companies manufacture products dealing with health, although one company is in fitness and the other is in medical care products.

Now, the commissioners wait to hear from the two companies about whether they’ll locate here.

Precor, an exercise equipment manufacturer, proposed 142 jobs and a $26.2 million, 225,000-square-foot building and requested $294,000 in incentives. Precor would open a manufacturing plant for a new line of strength-training equipment. Guilford County is in competition with locations in Columbia, S.C., and Nashville, Tenn.

The ConvaTec expansion is contingent on whether another manufacturing plant is chosen among its 14 other facilities worldwide.

ConvaTec has been in Guilford County for nearly 30 years and makes products for skin and wound care, along with items such as colostomy bags. The company requested $152,000 in incentives for 30 new jobs and a $20 million expansion to an existing plant.

Both will announce whether they will expand here at an undetermined later date, and both propose that the manufacturing jobs would offer a starting salary of roughly $38,000 and benefits.

The commissioners were low-key and inquisitive of ConvaTec, with discussion reminiscent of a decision last year to deny RF Micro some incentives to expand.

“We do need jobs and we do need opportunities,” said Kay Cashion, vice chairwoman of the Board of Commissioners. “You’re actually competing within your own company for this.”

The plant manager, Thomas Brugnoli, said the plant here needs to stay competitive if it intends to keep operating in the long term, and the expansion would include some new technology.

“The challenge in manufacturing is that unless you’re looking to get new products and new technology, you will drive yourself out of business,” Brugnoli said.

The commissioners approved the incentives deal for ConvaTec, 9-2, with Republican Commissioners Mike Winstead and Billy Yow voting no.

Winstead, on the other hand, all but gushed at the thought of Precor relocating here. “Precor is one of the best fitness equipments around,” Winstead said.

“I love the name Precor,” he said, comparing it to other local businesses such as Polo and HondaJet Aircraft Technology.

Other commissioners also appeared excited that the company might locate, except for Yow, who voted no on the Precor incentives and criticized the board for promoting the incentives.

As with all incentives, the ones the commissioners offered Tuesday would be paid only after hiring and investment minimums are met in the county.

Meanwhile, other commissioners such as Chairman Kirk Perkins, a Democrat, and Republican Linda Shaw appeared hopeful that Precor would come here.

“Welcome,” Shaw said.

The commissioners approved the Precor incentives deal, 9-1. Yow voted no. Commissioner Steve Arnold was not present Tuesday.

Contact Gerald Witt at 373-7008 or gerald.witt@news-record.com

Accompanying Photos

Margaret Baxter (News & Record)

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