The town of Siler City received a $235,000 grant last week to support the renovation of the old Olympic Steel building for A.D. Tubi, a European manufacturer of welded tubes.
The company, which also goes by the name Apex Investment, is investing $6,291,073 and is expected to create 18 jobs at the Siler City location on Hampstone Road.
The jobs created will have an average wage of $58,989, which is in excess of the current average wage in Siler City for full-time employment, according to Alyssa Byrd, Interim Executive Director of the Chatham County Economic Development Corporation.
Byrd told the News + Record typically the grant is based on the number of jobs and the county’s economic tier. With Chatham County being a Tier III county, the classification for wealthier counties, the typical award would have been $5,000 per job.
However, the North Carolina Rural Infrastructure Authority which approved the grant, used its discretion, taking the average salary into account and increased the amount based on the value of the jobs.
“Having competitive wages attracts talent and in this case attributed to attracting investment from the state,” Byrd said.
The grant was one of 19 approved by the North Carolina Rural Infrastructure Authority, totaling $7,275,100.
According to N.C. Commerce Secretary Anthony M. Copeland, the public investment in these projects will attract more than $95 million in private investment and create 407 across the state.
“Rural North Carolina communities have a lot to offer families and businesses, and they need infrastructure that complements those unique assets,” said Copeland. “These new Rural Infrastructure Authority grants will help invest in that infrastructure and support the creation of good jobs across our state.”
According to Byrd, for every five jobs created in the iron and steel pipe industry, another job is created elsewhere in the region’s economy. This would mean that the company’s 18 jobs would likely create three to four additional jobs in the community.
The investment will yield an additional $5.4 million in new sales within Siler City subsequent to its investment, according to Byrd. This could yield $5.6 million in sales revenue and $23,500 in local tax revenue generated within Siler City.
According to Siler City Planning Director Jack Meadows, the company has not gone through the permitting process nor submitted any plans yet. The company did secure an interior demolition permit from the town, according to Siler City’s Building Codes Administrator, Charlie McLaurin.
However, Byrd stated that the company has a “pretty aggressive schedule” and is hoping to be operational in March.
In October, the Siler City Board of Commissioners approved an incentives package for the group valued at $33,100 over five years.
In order to receive the grant each year, the company would need to enter into a contract with the town. That contract will require that the company to reach each threshold and obligation of the incentive contract.
“Filling a vacant building and investing in both real and personal property will increase tax revenue,” Byrd said. “It will also create well paying jobs that fit well in the manufacturing culture of Siler City.”
