Red Bull, Rauch to bring 400 jobs to North Carolina with a $4M boost from taxpayersJuly 14, 2021
Red Bull and filling company Rauch plan to open a new facility in Concord, expecting to create 400 jobs and bring an investment of $740 million to the state by 2027, North Carolina Gov. Roy Cooper said Tuesday.
The Cooper administration estimates the facility will grow the state’s economy by about $1.7 billion over the next 12 years. In exchange, North Carolina will give the companies more than $4 million in tax incentives.
Red Bull and Rauch plan to build a 2-million-square-foot “state-of-the-art campus” for beverage manufacturing, can filling and distribution in Cabarrus County.
“Global manufacturers need a world-class workforce to support their expansion plans,” Cooper said. “In North Carolina, Red Bull and Rauch have chosen the largest manufacturing workforce in the Southeast and a resilient business climate with an excellent transportation infrastructure to support their long-term growth.”
The company will take advantage of the state’s Job Development Investment Grant (JDIG), which offsets the costs of establishing a business in the state.
Officials estimate Red Bull will grow the state’s economy by $279 million over the next 12 years and create 90 jobs. The state will reimburse the company more than $1 million over the same time period as long as it meets the job creation and economic expectations.
The state believes Rauch will grow the state’s economy by $1.5 billion and create 323 jobs over the 12-year period. The state would then reimburse the company more than $3 million.
It is unclear how much the average annual salary would be at the Red Bull-Rauch facility, but state officials said the local region would benefit from a more than $20.8 million annual payroll revenue. The current average wage in Cabarrus is $41,255.
“What an outstanding announcement for our county and our region,” said Sen. Paul Newton, a Republican who represents the district. “The decision by these innovative companies to choose Cabarrus County creates game-changing employment opportunities for our citizens.”
Development grants are tax incentives that critics argue are a way for the government to pick winners and losers in the private sector. Critics also contend such incentives are a waste of taxpayer money because companies generally will expand without them. Critics said that improving the state’s overall tax and business climate is a fairer way to grow jobs.
Red Bull and Rauch’s JDIG agreement also calls for a $1.3 million contribution to the state’s Industrial Development Fund – Utility Account, meant to cover infrastructure aimed at attracting businesses to rural areas of the state.
This article was originally posted on Red Bull, Rauch to bring 400 jobs to North Carolina with a $4M boost from taxpayers