What's New

Mack Trucks Inc will relocate its headquarters and some support functions to Greensboro, creating 493 jobs and investing $17.7 million during the next three years, Gov. Mike Easley's office announced Thursday morning.

Mack Trucks Inc.'s headquarters are currently in Allentown, Pa., as are support functions such as information technology, parts logistics, product development and purchasing that serve Mack Trucks.  The move by Mack Trucks is designed to boost the competitiveness of the company and improve efficiencies.

"The city of Greensboro and the state of North Carolina have been great partners to Mack for a number of years," said Dennis R. Slagle, president and CEO of Mack Trucks. "Mack looks forward to continuing that partnership, and making a positive contribution to the area's economy and community."

The company's restructuring, which is expected to start later this year and continue through 2010, will result in 493 new jobs that will pay an average salary of more than $73,800, not including benefits. That's more than the Guilford County average of $37,700.

Dan Lynch, president of the Greensboro Economic Development Alliance, said the move helps cement the region's reputation as a transportation and logistics hub.

"I firmly believe activity encourages more activity," he said. "One of our goals is an environment of job creation so our young professionals have opportunities here in Greensboro. Mack's influence will be very positive for the region."

Pat Danahy, president and CEO of the Greensboro Partnership, said Mack Trucks has indicated its restructuring will take place beginning later this year and will continue through 2010. He said the company will likely take up space near Piedmont Triad International Airport.

Easley's office said for each year the company meets required performance targets, the state will provide a Job Development Investment Grant equal to 60 percent of the state personal income withholding taxes derived from the creation of new jobs. Should the company create the jobs called for under the agreement and sustain them for nine years, the agreement could yield as much as $8.5 million in maximum benefits for Mack Trucks.

The grants are awarded only to new and expanding businesses and industrial projects whose benefits exceed the costs to the state and would not be undertaken in North Carolina without the grant, Easley's office said.

Mack Trucks has been headquartered in Allentown since 1905. The company employed 4,241 people at the beginning of the year and had 2007 retail sales totaling 13,438 units, which represented about a 9 percent share of the heavy truck market.