Gov. Bobby Jindal and Louisiana Economic Development Secretary Stephen Moret joined executives from V-Vehicle Company Wednesday to announce the company will begin assembling cars in Monroe.
"What we are here to officially announce today is not a typical economic development project," Jindal said. "Today, we are here to announce that through quick, aggressive action to pursue a transformative opportunity, we h ave a chance here in Louisiana to re-energize the U.S. auto industry."
He said the project has the potential to "transform the entire Monroe area and could be a game changer for the economy of northeast Louisiana."
The San Diego-based company has chosen the former Guide Corp. plant in Monroe, which has been closed for several years, as its new assembly site.
The 450,000-square-foot plant currently occupies some 189 acres of land. VVC plans to increase the size of the facility to about 750,000 square feet.
James Davison of Guideco Properties, the owner of the property, said the facility was chosen because it has the ideal infrastructure for the type of industry.
VVC plans to produce a "high quality, environmentally friendly and fuel-efficient car" for the U.S. market.
VVC plans to create 1,400 new jobs at the expanded plant. Jindal said the average annual salary for the jobs will be about $40,000.
An economic impact analysis conducted by Louisiana State University found that the direct jobs will create an estimated 1,800 indirect jobs. The analysis also suggests the company will inject some $19.6 billion in new state economic output from 2010-2024.
"Every once in a while we are presented with an opportunity to throw long, to move the ball down the field in a major way with a single transformational project," Jindal said.
State and local officials assembled a customized incentive package to help secure the project. If all performance requirements are met, VVC will receive a state incentive package worth about $67 million, which will fund improvements to and expansion to the facility.
Louisiana FastStart will provide, at no cost to the company, customized workforce recruitment, screening and training for VVC and its on-site suppliers.
The LSU analysis estimates VVC and its on-site suppliers will generate more than $131 million in new state tax revenue over the first 15 years of the project.
Moret said the project will have a lasting impact on northeast Louisiana and the entire state, and it sends a message that "Louisianais a new frontier for business opportunity."
