SANFORD, N.C. (WPTF) — A leading health care company, will create 335 jobs in Lee County. The company will invest $600 million in a new manufacturing and distribution center in the city of Sanford.
“STERIS is making a major investment in North Carolina, which reinforces our state’s reputation as a powerhouse in the life sciences industry,” said Governor Josh Stein. “Decades of excellence in manufacturing and innovation have developed the world-class talent, research, and supply chain that continues to attract global companies and drive long-term economic growth across our state.”
Founded in 1985, STERIS is a global provider of products and services that support patient care with an emphasis on infection prevention. STERIS employs more than 18,000 people across approximately 250 locations in more than 35 countries. This new 600,000-square-foot state-of-the-art campus will include advanced manufacturing, R&D, lab, warehouse, and distribution operations.
“After extensive analysis of our existing facilities and Customer demand, we have decided to make a significant investment in the United States to support our long-term global growth,” said Dan Carestio, President and CEO of STERIS. “Creating a formulated chemistries Center of Excellence will allow us to accelerate innovation, expand capacity and optimize our U.S. chemistries manufacturing and distribution network. Our Customers save lives every day, and with this investment we will be well positioned to support their needs for years to come.”
“STERIS’ decision to make its Center of Excellence in Lee County affirms the region’s emergence as a premier hub for advanced manufacturing,” said N.C. Commerce Secretary Lee Lilley. “Guided by our First in Opportunity strategic plan, North Carolina is strengthening our competitive advantage by investing in workforce development, fostering innovative partnerships that meet industry needs, and creating the conditions for companies like STERIS to succeed and generate strong returns on their investment.”
Although salaries for the positions will vary, the average annual salary will be $68,704, exceeding the Lee County average of $59,903. These new jobs could create a potential annual payroll impact of more than $23 million for the region.
STERIS’ operation in North Carolina will be facilitated, in part, by a Job Development Investment Grant (JDIG) awarded to STERIS Corporation, which was approved by the state’s Economic Investment Committee earlier today. Over the course of the 12-year term of this grant, the project is estimated to grow the state’s economy by $1.8 billion. Using a formula that takes into account the new tax revenues generated by the new jobs and capital investment, the JDIG agreement authorizes the potential reimbursement to the company of up to $3,213,000, spread over 12 years. State payments only occur following performance verification each year by the departments of Commerce and Revenue that the company has met its incremental job creation and investment targets.
The project’s projected return on investment of public dollars is 325 percent, meaning for every dollar of potential cost to the state, the state receives $4.25 in state revenue. JDIG projects result in positive net tax revenue to the state treasury, even after taking into consideration the grant’s reimbursement payments to a given company.
Because STERIS chose a site in Lee County, classified by the state’s economic tier system as Tier 2, the company’s JDIG agreement also calls for moving as much as $357,000 into the state’s Industrial Development Fund – Utility Account. The Utility Account helps rural communities anywhere in the state finance necessary infrastructure upgrades to attract future business.
“We are proud to welcome STERIS to Lee County,” said State Senator Jim Burgin. “This landmark investment and expansion mark an exciting new chapter for both the company and our community, creating opportunities for shared growth and long-term economic prosperity. Healthcare and healthcare costs are two areas I am passionate about. I am looking forward to STERIS helping with both.”
“This is exceptional news for our region and the entire state of North Carolina,” said State Representative John Sauls. “STERIS’ decision to invest in Sanford speaks volumes about the strength of our community, workforce, and business environment. We’re proud to welcome them as the newest member of our thriving corporate community.”
In addition to the North Carolina Department of Commerce and the Economic Development Partnership of North Carolina, other key partners in this project include the North Carolina General Assembly, Commerce’s Division of Workforce Solutions, the North Carolina Department of Transportation’s Rail Division, North Carolina Biotechnology Center, the North Carolina Community College System, Central Carolina Community College, the North Carolina Railroad Company, Norfolk Southern, County of Lee, Sanford Area Growth Alliance, City of Sanford, TriRiver Water, Duke Energy, and Enbridge Gas North Carolina.