Job creation failures in Catawba County impact growth

CATAWBA COUNTY, N.C. — Two companies in Catawba County have failed to meet job creation requirements as part of their economic development agreements, leading to an extension for one and termination for another.

At a recent Catawba County Board of Commissioners meeting, it was revealed that Gusmer Enterprises and Pöppelmann Plastics did not fulfill their job creation commitments.

Gusmer Enterprises, which had agreed to create 73 jobs by the end of 2023, will have its agreement amended to extend the deadline to 2026.

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Meanwhile, Pöppelmann Plastics’ agreement will be terminated as the company failed to create any new jobs, according to the Hickory Record.

Catawba County Economic Development Corporation President Scott Millar explained that Gusmer Enterprises met its investment criteria but did not maintain the required jobs through 2024 and 2025.

County attorney Jodi Stewart stated that Pöppelmann Plastics did not create any new jobs, although they met the investment requirement, and no incentives were paid to them.

Gusmer Enterprises entered into an agreement with Catawba County and the city of Hickory in 2021 to invest $38.2 million and create 73 new jobs at the Trivium Corporate Center. The company purchased land at a discounted rate, saving $1.2 million.

Under the revised agreement, Gusmer now has until December 31, 2026, to meet the job creation requirement and must maintain these jobs through December 31, 2028. Failure to do so will result in financial penalties.

Pöppelmann Plastics had an agreement to invest $19 million and create 100 jobs over three years in Claremont. The incentives included potential property tax returns of up to $342,000 annually. However, the company did not create any new jobs, leading to the termination of the agreement.

Discussions regarding American Fuji Seal’s economic development agreement were postponed as the company requested changes. American Fuji Seal had announced plans to build a facility in 2020, promising to create 101 jobs and invest at least $52 million.

The adjustments to these economic development agreements highlight the challenges companies face in meeting job creation targets, impacting local economic growth plans.

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