Teijin to make largest single-day investment in Greenwood County history
A Japanese chemical technology company that specializes in the production of carbon fiber is making the largest single-day investment in Greenwood County history – a move so significant that one local leader called it a “once in a lifetime” opportunity.
Teijin will spend $600 million and create 220 jobs, building a facility on more than 454 acres off Highway 246. Construction is expected to start in the summer.
“This is going to be our shining star for the year,” Greenwood Partnership Alliance CEO Heather Simmons Jones said. “Greenwood was ultimately selected as the successful site because of its excellent training available at Piedmont Technical College, an abundance of water and a history of welcoming foreign investment.”
Securing an agreement with Teijin has been seven years in the making. Simmons Jones traveled to Japan earlier this year to meet with company executives.
A centerpiece in Greenwood’s efforts at luring Teijin are local commitments to widen Highway 246 and the construction of a Center of Manufacturing Excellence at Piedmont Tech – items included in the $85 million capital projects sales tax initiative on the ballot for Tuesday.
Piedmont Tech President Ray Brooks said Teijin’s pending arrival in Greenwood “is probably one of the most exciting things I’ve been involved in in my career.”
“All the boards/groups that came together — this is like the Cubs winning the (World) Series. It’s been a long time coming. Words are not adequate to describe the magnitude of the impact on this county’s future,” he said.
The venture, code named “Project Café,” was first discussed publicly at a Tuesday County Council meeting, but the company’s identity was not released until 9 a.m. Friday.
The council will have a public hearing and is expected to approve a fee-in-lieu-of taxes agreement, or FILOT that will reimburse all or a share of property taxes for 22 years, on Dec. 6. To be eligible, Teijin must invest the estimated money and create the promised number of jobs within 13 years.
Teijin purchased the land – identified on county property maps as “Teijin Holdings USA Inc.” between 1008 and 1122 Highway 246 and Hillcrest Farm Road – for $6.3 million from Carolina Pride in May. Fujifilm’s campus is adjacent to Teijin, and Portucel Sporcel’s wood pellet plant is across the highway.
The Greenwood employees will join 16,000 others across 20 countries and Teijin’s 150 companies. It posted consolidated sales of 790.7 billion Japanese yen, or $7.4 billion, and total assets of 823.4 billion Japanese yen, or $7.7 billion, in the fiscal year ending March 31. The announcement means Teijin becomes the sixth highest single-day investment in South Carolina over the last five years, according to the state Department of Commerce.
Failure to invest the estimated amount of money or meet the job target could result in tax incentives being modified.
Teijin’s carbon fiber manufacturing facility in Greenwood will supply the automotive, aerospace and industrial markets.
“We are hopeful that because this is an emerging market, a growing industry sector, there will be opportunities for future growth,” Simmons Jones said.
However, said County Council Chairman Steve Brown, Greenwood leaders are confident Teijin will deliver and become a major player in the region’s economy.
“The economic benefits that this project will bring to Greenwood, they’re just tremendous. In years to come, we will look back on this day as very, very good for the county and our citizens,” he said. “Everybody in Greenwood County can feel good about a project of this nature.”
Greenwood Mayor Welborn Adams said even though the plant isn’t located within city limits, there will be a benefit to the municipal economy with the number of new jobs being produced.
“It’s a community-changing company that only arrives a couple of times in your lifetime,” he said. Adams said long-term planning helped secure the agreement.
“These companies are very deliberate in making their decisions and you’ve got to put the ground work in place years before. It’s why we did (The) Greenwood Promise and penny sales tax Everything is tied to the future in getting the skilled workforce these companies need,” he said.
Frank Wideman, chairman of the Greenwood Partnership Alliance’s board of directors, said the organization was tenacious in navigating details of the deal.
“This is by far the longest relationship we’ve ever had with a company that was interested in moving into Greenwood. You had the county, city and business community working together to further create opportunities for people in the county,” he said.
In a prepared statement, Teijin Director of Government Relations Wayne Trotter hinted at the company’s long-term plans for its Greenwood County site.
“We plan to invest in resources to develop new and innovative products to meet the increasing demands of the global carbon fiber market,” he said.
In May, the Nikkei Asian Review said Teijin’s Greenwood plant will be the company’s largest investment in 10 years and will boost its carbon fiber output capacity by 30 percent, to 14,500 tons annually.
Teijin’s main fields of operation include high-performance fibers, such as aramid, carbon fibers and companies, resin processing, polyester fibers and more.
Trotter cited the state and Greenwood’s “pro-business atmosphere” as a catalyst for Teijin setting up operations here.
Teijin will become the second major manufacturer to open up along the Highway 246 corridor since April 2015, when Portucel Sporcel Group broke ground on its $110 million Colombo energy wood pellet plant.
“Greenwood County has worked diligently throughout this process to cultivate our relationship with Teijin, and as our relationship transitions into this new phase, we are confident they will be great corporate citizens in the community,” County Manager Toby Chappell said.
Details on hiring for the new positions will be announced after completion of ongoing engineering studies. For more on the company, visit teijin.com.
Contact staff writer Adam Benson at 864-943-5650 or on Twitter@ABensonIJ.
Originally Published by Index-Journal on:Nov 4, 2016
By ADAM BENSON abenson@indexjournal.com