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Goodyear, Bridgestone could receive up to $30M each in state grants

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Operators of tire-manufacturing plants in Fayetteville and Wilson each will receive up to $30 million in North Carolina grants over the next 10 years if they meet job-retention targets and investment goals, the state said Wednesday.

Taking up an offer the General Assembly passed last year, Goodyear Tire & Rubber and Bridgestone Firestone North American Tire have agreed to invest at least $200 million each over the next three years and to maintain “at least” 2,000 employees, according to the North Carolina Department of Commerce.

Incentives for industry are a contentious issue across the state, intensived by lucrative packages to help North Carolina land high-tech projects such as Google in Lenoir, Dell in Winston-Salem, and several firms across the Triangle.

Goodyear’s agreement calls for it to retain 2,398 workers and make its investments by 2012.

As of last month, the plant employed close to 3,000 people.

Bridgestone is required to keep 2,083 workers and invest $200 million by 2010.

The grants are part of the state’s Job Maintenance and Capital Development Fund, which the Department of Commerce oversees.

The state’s Economic Investment Committee approved the two contracts on Wednesday morning.

The funds are to be used “primarily” for “worker-training costs needed to use the new technology and equipment” being installed at the plants, according to the Department of Commerce.

“The General Assembly created this grant program to help large employers in economically disadvantaged counties remain and grow in North Carolina, rather than move to off-shore locations,” Commerce Secretary Jim Fain said. “The significant investment these companies will make will allow them to modernize their facilities while providing a strong economic contribution in areas of the state where they are very much needed.”

The grant program was approved after a fight between Gov. Mike Easley and the Legislature. Easley vetoed an initial bill, but later reached an agreement with legislators during a special session and signed the subsequent bill they passed.