The City of Mebane approved incentives Monday night for Morinaga, a leading Japanese candy company that will be opening a factory in town.
The company plans to create 90 jobs and invest up to $48 million over the next three years.
As part of the incentive package what was approved, the city plans to offer a cash incentive of 1.5 percent of the total investment. Morinaga is expected to make an initial investment between $34 million to $48 million.
If the company makes an investment of $34 million, at 1.5 percent, Mebane would make an incentive payment of $102,000 in five annual payments for a total of $510,000.
For a maximum potential investment of $48 million, the 1.5 percent incentive would equal a payment of $144,000 in five annual payments for a total of $720,000.
Construction is set to start in March 2014 and the 98,000 square-foot facility should begin operation in June or July of 2015. The factory will be located on Ben Wilson Road near I-40/I-85.
Morinaga products include milk caramel, chocolates, cookies, foodstuffs such as cocoa mix, and frozen desserts such as ice cream sandwiches and sundae cups. North Carolina activities will primarily consist of blending syrup, sugar, flavorings and other ingredients to produce soft candies such as Hi-Chew.
Salaries will vary by job function, but total payroll is estimated to be more than $3.4 million plus benefits. The average salary will be just under $38,000.
The project was made possible in part by a performance-based grant from the One North Carolina Fund of up to $264,000. The One N.C. Fund provides financial assistance, through local governments, to attract business projects that will stimulate economic activity and create new jobs in the state.