How South Carolina
landed Vought Sanford’s flight to
Alabama aids in luring factory By JIM DuPLESSIS Staff Writer
NORTH CHARLESTON — The fog was lifting as Gov. Mark
Sanford and an S.C. Commerce official walked in the early morning
darkness across the tarmac of a small airport last August outside
Mobile, Ala.
They could hear cows moo in the nearby pasture as they approached
Fairhope airport’s small terminal to meet two Italians. The men were
two of the executives who would decide whether greener fields for a
new aircraft body plant lay in South Carolina, Alabama, North
Carolina Oklahoma or Texas.
At stake was an investment worth at least $560 million and with
at least 600 new manufacturing jobs paying around $20 per hour. The
average S.C. manufacturing worker earns just under $15 an hour, and
Sanford had run in 2002 on a pledge to raise the incomes of South
Carolinians, in part by drawing new types of industries to the
state.
This, Sanford decided, was the ticket.
Vought Aircraft Industries of Dallas and Alenia Aeronautica of
Rome were deciding between North Charleston, Mobile, Kinston, N.C.,
Tulsa, Okla., and Dallas. The winning site would receive a plant
that would make a section comprising about a quarter of Boeing’s new
7E7 Dreamliner, a mid-size passenger jet to be made with new
lightweight materials and built using efficient methods borrowed
from the auto industry.
Alenia chief executive Roberto Assereto and another Alenia
executive had flown from Rome to meet with state officials and tour
sites. That Aug. 4 morning they were headed for their next stop:
Charleston.
They were expecting a South Carolina government jet to pick them
up. They were not expecting the governor to meet them in
Alabama.
Soon after Sanford’s flight, Alabama’s fair hope of landing the
aircraft body plant evaporated. The state would bail out by
September, leaving South Carolina as the sole contender.
By November, the companies’ choice of South Carolina had become
obvious. All that was left was last-minute details and Wednesday’s
announcement in North Charleston.
The decision followed eight months of daily meetings and
correspondence among the companies and S.C. Commerce Department
officials.
Commerce Secretary Bob Faith missed the trip to Mobile, but he
spent much of the year on his way to meetings in London, Rome and
Dallas.
It was one of the biggest deals ever for the department, earning
its code name: “Buffalo.”
It was also one of the most complex, involving three companies, a
new plane and a state with little experience in the aircraft
industry.
But state officials knew a little bit about hospitality, and they
weren’t shy about sharing the charms of the Holy City.
Alenia CEO Assereto had never been to Charleston before. During
his stay, he and state officials had dinner downtown and explored
the city. Vincenzo La Palombara, the Alenia executive in charge of
commercial aircraft, had visited Charleston previously but commented
that it reminded him of Naples.
S.C. officials felt the city had cast its spell.
A few weeks later, Alabama officials learned the company wanted
to cut its minimum job pledge from the 1,000 jobs first discussed to
600 jobs — but without Alabama cutting its incentives.
Neal Wade, director of the Alabama Development Office, flew to
Italy and Dallas in early September to meet with Alenia and Vought
officials. But when he came back, he recommended to Gov. Bob Riley
that the state drop out. The Birmingham (Ala.) News reported
Mobile’s loss on Sept. 23.
“As we looked at it from a cost-benefit angle, we could not
justify it for the taxpayers of Alabama,” Wade said. “We could not
supply a mega-incentive package for 600 jobs. We could not make it
work”
Sanford and Faith said South Carolina could not afford to lose
it. Faith has said the project’s price tag will be revealed in about
a week after details are worked out with the companies, but he said
it would be on the scale of BMW’s incentives. Those incentives cost
state and local governments $133 million at the time —about $165
million in today’s dollars.
But Faith is betting the incentives will yield much larger
investments and jobs than the companies announced Wednesday.
Already, Alenia officials have said Charleston would be among their
first choices for a new U.S. plant with hundreds more jobs if it
wins a contract to build the military’s next-generation cargo
plane.
The C-27J contract calls for making 160 to 500 of the cargo jets
between 2007 and 2019. It is worth about $5 billion over the 12
years. The military will decide between Alenia and Europe’s Airbus
in early 2006.
“Buckle your seat belt, because this is just the beginning. It’s
going to be a good ride,” Faith said.
Reach DuPlessis at (803) 771-8305 or jduplessis@thestate.com. |