Posted on 04/04/2017 10:19:26 PM PDT by 2ndDivisionVet
MAS Holdings, a global apparel technology and manufacturing company, will locate its first U.S. manufacturing and development center in Randolph County, creating 133 new jobs, Gov. Roy Cooper’s office announced in a news release.
The company plans to invest nearly $20 million in a facility in Asheboro, providing additional payroll impact exceeding $4 million annually.
MAS is a textile company headquartered in Sri Lanka, employing more than 85,000 people worldwide, operating 48 facilities in 15 countries including design offices, apparel and component manufacturing plants and private industrial parks. MAS also provides technology to the apparel and footwear industry. Recently, the company has been working to integrate technology into clothing, partnering with startup companies in the Silicon Valley region of California and in New York in the fields of wearable technology and health & wellness.
MAS Holdings’ selection of a North Carolina location includes a pending acquisition of Acme-McCrary, a 108-year-old textile manufacturer currently located in Asheboro with additional facilities in Chatham County and the Republic of Honduras. The company produces legwear and active wear for large U.S. retailers.
A performance-based grant of $575,000 from the One North Carolina Fund will help facilitate MAS Holdings’ expansion into Randolph County.
The One NC Fund provides financial assistance to support local government efforts to attract economic investment and create jobs. Companies receive no money up front and must meet job creation and capital investment targets to qualify for payment. In the case of MAS Holdings’ grant, in addition to its new job-creation target, the company is also required to retain 374 existing jobs currently located in North Carolina at Acme-McCrary. All One NC grants are also contingent upon a matching grant from local governments.
Fast forward 2-3 years and you will read the Ashboro operations are being shut down and all production is being absorbed into Asian plants. These “new” jobs will be gone as well as the remaining employees of the acquired company. It is a story that has been repeated hundreds if not thousands of times in the US apparel industry. However, for only $575,000 our governor buys a PR event, with taxpayer money, and MAS gets a few dollars to plan the demise of its new US acquisition.
if only there was a requirement the recipients of these government “job creating” grants were audited and made to return the funds if the job creation turned out to be fake. Even better, get the government out of the buying fake jobs business.
My home town in southern Ohio has welcomed at least five new businesses to the same building over the last 50 years. The companies stay until their grant money or tax abatements expire. Still a win for Ashboro, however fleeting it may be.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.