Gov. Easley Announces 361 New Jobs for the Triangle
Raleigh, North Carolina - July 27, 2004
-- Gov. Mike Easley announced today that Network Appliance, Inc.
will expand its operations in the Triangle, bringing 361 new jobs
and $59 million in additional investment to the area. Network
Appliance, a world-leading data storage provider, is the 15th
recipient of an award under the new state Job Development
Investment Grant (JDIG) program.
"As a result of targeted, performance-based initiatives such as
JDIG, North Carolina is leading the nation in job growth," said
Easley. "Companies such as Network Appliance are choosing to locate
and expand in North Carolina because our of business-friendly
climate, low tax burden as well as our superior educational system
Since its inception in 1992, Network Appliance (NASDAQ: NTAP) has
been a pioneer in the development of electronic data storage
systems and technologies. NetApp® storage solutions include
specialized hardware, software and services, providing seamless
storage management for open network environments. Major
corporations and service providers include Bank of America,
Citicorp Securities, Krispy Kreme, Lockheed, Merrill Lynch, Oracle,
Red Hat, SAS, Texas Instruments and Yahoo! With headquarters in
Sunnyvale, California, Network employs 2,800 employees worldwide.
Network Appliance currently has offices in Durham and employs more
than 150 people in sales, customer support and research and
Network Appliance anticipates purchasing three shell buildings
owned by Cisco Systems in the Research Triangle Park and should
initiate incremental hiring later this year. The jobs, which will
primarily focus on research and development, will also include
sales and customer support positions. The average salary for the
positions is projected to be at least $115,000.
"We are delighted that the Economic Investment Committee of North
Carolina has chosen us for the JDIG grant," said Tom Mendoza,
president of Network Appliance. "Our company has been in the RTP
area since 1999. "This grant will enable us to undertake this
project and continue to build and develop strong local ties with
our business partners and customers and reap the benefits of a
highly talented workforce in North Carolina."
Network Appliance has a strong working relationship with N.C. State
University and participates in the University "ePartners" program.
For the past two-and-one-half years, Network has been a "Super
ePartner", the highest level of corporate involvement. "ePartners"
support the University's computer science department financially
and undertake collaborative work with faculty and students.
Under the terms of the agreement authorized unanimously this
morning by the state Economic Investment Committee, chaired by
Commerce Secretary Jim Fain, a 10-year grant will be established.
Over the life of the grant, the N.C. Department of Commerce
estimates the project will:
- Generate a cumulative gross state product
value of about $2.5 billion.
- Produce a positive cumulative net state
revenue impact of $99 million.
- Contribute nearly $3 million to the state's
Industrial Development Fund for infrastructure improvements in
rural North Carolina. This contribution is required of grant
recipients that locate in a Tier 5 urban county.
For each year in which the company meets the
required performance targets, the state will provide a grant equal
to 65 percent of the state personal income withholding taxes
derived from the creation of new jobs. If the company creates the
jobs called for under the agreement and sustains them for 10 years,
the agreement could yield maximum benefits to the company of as
much as $8.9 million over the life of the grant.
The Job Development Investment Grant initiative, proposed by Easley
in 2002, awards up to 25 grants annually to strategically important
new and expanding businesses and industrial projects. These grants
are only awarded to projects whose benefits exceed their costs to
the state and which would not be undertaken in North Carolina
without the grant. Cumulative annual grant amounts are capped at
Since 2003, JDIG is responsible for bringing $660 million in
investment and nearly 6,000 jobs to North Carolina.