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GOV. EASLEY ANNOUNCES PHILIP MORRIS TO MAKE $200 MILLION INVESTMENT FOR CABARRUS CO.
***This release was issued by the Office of North Carolina Governor Easley. ***
RALEIGH (October 5, 2004) - Gov. Mike Easley today announced that Philip Morris USA will invest about $200 million in improvements during the next three years designed to help protect jobs and modernize its current manufacturing facility in Cabarrus County. Philip Morris employs about 2,600 people in Cabarrus County.
Today's announcement that Philip Morris will upgrade its Cabarrus County facility means the company will bolster its presence in the area, said Easley. Our investments in education, workforce development and infrastructure are essential in competing for jobs in todays global economy. North Carolina understands that to get and keep good companies like Philip Morris, we must continue to invest wisely.
Philip Morris USA has been awarded $1 million from the One North Carolina Fund. Since May 2001, this fund has been responsible for bringing nearly 12,000 jobs and $1 billion in investment to North Carolina. The company is also receiving $100,000 from the Incumbent Workforce Program, which will enable Philip Morris to provide educational and skills training to its workers.
About $140 million of the investment includes installation of 12 high-speed cigarette manufacturing modules that will replace 18 lower-speed modules, giving the facility the potential to increase production. The first manufacturing module will soon be operational in the plants training center and the last module is expected to be installed at the end of 2006. Philip Morris USA is also in the process of completing an Automated Storage and Retrieval System (ASRS), which will boost productivity. The company will use it to store its cigarette packaging materials. Currently, materials must be delivered from the warehouse to a staging location, then moved again to the manufacturing center floor. With the new process, an automated system will deliver the materials to the production area.
Investments in the Cabarrus facility are a demonstration of Philip Morris USAs already strong commitment to North Carolina, said John R. Nelson, Philip Morris USA president of operations and technology. We believe in North Carolina. We believe in the people here, and we believe that our future together is bright.
Philip Morris USA currently employs about 2,700 people in North Carolina. Jobs include machine operators, maintenance and electrical equipment positions and production support jobs. The average wage at the Cabarrus facility is $917 a week.
The company contributes about $268 million annually to the North Carolina economy through employee wages and taxes. Last year, Philip Morris USA purchased nearly half of all tobacco grown in the state.
Today's announcement was made possible with the help of the N.C. Department of Commerce, the city of Concord, Cabarrus County, Rowan-Cabarrus Community College and Duke Power.
For additional information about Philip Morris USA, visit the company's web site at
http://www.philipmorris.com/.
