New Hanover County commissioners hope that Monday’s unanimous vote to approve an industrial investment grant for Fortron Industries LLC will convince the company’s parent to proceed with a proposed $50 million capital improvement expenditure in the Wilmington chemical plant.
 
The incentives package approved by the commissioners upon the recommendation of county manager Chris Coudriet would pay a maximum of $100,000 per year for up to five years to the company, if Fortron hits expenditure benchmarks set by the county.
 
But first, the company’s parents, Celanese Corp. and Kureha Corp. of Japan, must commit to the investment.
 
Coudriet said Monday that Fortron’s parent company was determining where to make the next generation of investments, and support from the county for Fortron’s proposed improvements would strengthen its case.
 
Scott Satterfield, CEO of Wilmington Business Development, echoed Coudriet’s comments.
 
“Internal competition is real,” he said after Monday's meeting. “Companies don’t just toss around $50 million. We certainly want these resources to be allocated in New Hanover County, and we’ve been working with Fortron on this for several years.”
 
The incentive funds will come from the county’s general funds, commissioners chairman Woody White said at Monday's meeting.
 
Satterfield was the only person to speak during the meeting’s public comment period.
 
“Fortron is one of the top five taxpayers in the county paying about $451,000 per year in taxes and employs 60 full-time employees in addition to 40 contractual employees,” Satterfield said. “They have a $7.5 million annual payroll.”
 
Satterfield said that Fortron’s proposed $50 million investment would accomplish two things: give the existing plant additional capacity and achieve a wastewater treatment technology upgrade.
 
“It would improve the efficiency of the water treatment and reduce the solids discharge, improving the quality of that effluent into the river,” he explained. “That, definitely, is good news for the environment.”

“This investment will help keep the company viable in the international marketplace," Satterfield said of the Fortron incentives in a statement to commissioners at Monday morning's meeting. "By providing the incentives, the county will allow them to keep a small percentage of their investment. It’s incumbent on the county to keep this facility relevant.”
 
Satterfield noted that Fortron, which has been in the county for 20 years, completed a $65 million expansion in 2006.
 
“They honored the criteria set for the investment grant then, and I’m confident they will do so now,” he told the commissioners.
 
While Fortron does not anticipate expanding its permanent workforce, the capital projects themselves will provide short-term employment for construction crews, Satterfield pointed out.
 
After a very short discussion, White and fellow commissioners Jonathan Barfield, Beth Dawson and Thomas Wolfe voted unanimously to approve the investment grant. Commissioner Brian Berger was absent from the meeting.
 
Coudriet pointed out after the meeting that the incentives package not only supports Fortron’s continued competitive advantage within its industry, but adds to the county’s tax base.
 
“There will be a net gain of more than $750,000 of new ad valorem value over the next 10 years,” he said. “Fortron has been here 20 years; we expect them to be here beyond the next 10 years. [The incentives] keep them a relevant part of the job landscape.”
 
The amount of the incentives package was determined as a percentage of Fortron’s overall investment and relevant “ancillary benefits that come with that investment,” Coudriet said.
 
Fortron produces a high-quality engineering polymer called polyphenylene sulfide, or PPS. The material is used in high-temperature environments in the automobile, electronics, aerospace, fluid handling and consumer appliance industries.
 
Satterfield emphasized the important message approval of the incentives package sends to the business world.
 
“New Hanover County is serious about supporting existing companies; we’re interested in the longevity of industries here,” he said. “In less than a year we’ve been part of four major projects: Castle Branch, nCino, GE Aviation and Fortron, as well as Acme’s multi-million dollar fish processing plant just up the road from Fortron in Pender County. Think what that is saying.”