Title
Public Hearing - Business Location and Expansion - HSP US, LLC (Trench Group)
Action
ACTION:
1) Open public hearing to receive comments on a proposed Business Investment Program grant to HSP US, LLC (Trench Group)
2) Close public hearing
3) Adopt a resolution to approve a 3-year, 75% Business Investment Program Grant to HSP US, LLC (Trench Group), for a not to exceed amount of $353,523 and to authorize the County Manager to negotiate and execute the contract.
Staff Contact: Clay Andrews, Senior Economic Development Manager, Office of Economic Development
Presentation: Yes
BACKGROUND/JUSTIFICATION:
HSP US, LLC, is the subsidiary of Trench Group, headquartered in Berlin, Germany. It is a Siemens Energy’s “carve out” and has a long-term supply agreement with Siemens Energy that this project will likely serve.
The project entails manufacturing high-voltage bushings, expanding the company’s manufacturing capacity.
This will be the corporation's first manufacturing presence in the U.S. The company employs approximately 2,300 people at 9 factories and 4 regional hubs in Europe, Asia and North America as well as has a USA Regional office in Raleigh, NC.
HSP US, LLC's proposed project meets all the following grant guidelines for a 3-year Business Investment Program (BIP) Grant, specifically:
• A new taxable investment of $37,349,000 to be completed by the end of 2029.
• Creation of 74 new jobs with an average wage of $77,315 (which is equal or greater than 100% of the average SOC codes for each job position for the Charlotte-Gastonia-Rock Hill M.S.A.).
• There is competition for this project from Rock Hill, SC, and Gastonia, NC.
The general terms and condition of this grant include:
• A portion of the grant must be repaid if the company moves this investment from Mecklenburg County within 3 years of the end of the grant term.
• Actual grant payments are based on the value of the investment as appraised by the Mecklenburg County Tax Office.
• All property taxes due from the company must be paid before a grant payment is made.
The Board of County Commissioners indicated their intent to approve this grant in a closed session on 04/01/2025.
PROCUREMENT BACKGROUND:
N/A
POLICY IMPACT:
N/A
FISCAL IMPACT:
Business Investment Grant Account: first estimated payment would be in FY27.