Michael F. Easley
Governor
State of North Carolina
Office of the Governor
Governor's Press Office
State Capitol, Raleigh, NC 27603-8001
(919) 733-5612 - Toll Free 1-800-662-7005
FAX (919) 733-5166
For Release: IMMEDIATE Contact: Vanessa Capobianco
Date: October 27, 2005 Phone: 919/733-5612
GOV. EASLEY ANNOUNCES 400 NEW JOBS AND $84 MILLION INVESTMENT BY LENOVO JDIG and One North Carolina Fund Help PC Maker Grow in Wake County
RALEIGH – Gov. Mike Easley announced today that personal computer manufacturer Lenovo (United States) Inc. will invest $84 million to build a research and development center in Morrisville, creating 400 new jobs during the next five years. The expansion is made possible in part by a $750,000 One North Carolina Fund grant and a Job Development Investment Grant (JDIG). The average salary of the jobs is $70,000 a year plus benefits. The county average for Wake County is $39,572 excluding benefits.
“Lenovo exemplifies the type of company we want in North Carolina by providing sustainable, top-quality jobs for hard-working North Carolina families,” Easley said. “As a leading global information technology company, Lenovo will enhance our existing information technology industry in the Triangle.”
Lenovo, the world’s third-largest PC company, was formed by Lenovo Group’s acquisition of IBM’s Personal Computing Division earlier this year. The company, which develops, manufactures and markets high-quality, secure technology products, has its executive headquarters in Purchase, N.Y. The new jobs will be mainly management, research and development, sales and marketing, engineering, finance and information technology positions. Lenovo has been sharing space on the IBM campus in RTP since the acquisition. Construction is scheduled to begin on its new Morrisville facility in November. Lenovo plans to move the 1,820 workers currently housed in the former IBM offices in RTP to the Morrisville campus when construction is complete in January 2007. The new jobs will bring Lenovo’s total North Carolina workforce to more than 2,200 people.
“We have a proud history in North Carolina and look forward to building our new company here,” said Lenovo Product Group’s Chief Operating Officer Fran O’Sullivan. “Staying in North Carolina proved to make the most business sense for our customers, our employees and our stockholders, and we are grateful for Gov. Easley’s support.”
Lenovo (United States) Inc. is the 31st Job Development Investment Grant (JDIG) recipient since the program began in 2003. Under the terms of the agreement approved unanimously by the state Economic Investment Committee, an 11-year JDIG will be established. Over the life of the grant, the N.C. Department of Commerce estimates the project will:
• Generate a cumulative gross state product value of $3.1 billion;
• Produce a positive, cumulative net state revenue impact of $101.1 million; and
• Contribute $2.8 million to the state’s Industrial Development Fund for infrastructure improvements in rural North Carolina. This contribution is required of grant recipients that locate in a Tier 5 urban county.