GREENVILLE — South Carolina will invest an additional $15
million into Clemson University’s automotive research campus in
Greenville to build a research facility that BMW will lease, a
company official said after a groundbreaking Wednesday.
The move raises the state’s commitment to $69 million of a $106
million project. And it makes BMW the first tenant for Clemson’s
automotive research campus in Greenville, a project the automaker
has helped steer, saying it needs highly trained engineers to
sustain its growth.
BMW will pay a market-based lease to Clemson, but the amount has
not been set, said BMW spokesman Robert Hitt.
IBM said it was contributing $1.1 million in software and
expertise to help launch Clemson’s program, and a Microsoft official
said the software company supported the concept and would announce
its involvement in the coming months.
State officials have said the project was a new model of economic
development — mixing public and private dollars to create
high-paying jobs tied to knowledge — rather than attracting
factories by selling cheap labor and cheap land.
Gov. Mark Sanford, speaking at the project’s groundbreaking
Wednesday, said private involvement has become crucial while state
funds are becoming scarce. He also said the project pitches to the
Upstate’s strength as a hub for automotive suppliers.
Yet U.S. Labor Department statistics show the state’s automotive
sector has cut jobs since reaching its peak of 43,900 workers in
December 2000.
BMW has added 600 workers since then, but 2,000 jobs have been
cut by makers of tires, rubber and automotive parts.
“The question is: ‘Will those jobs come back when the economy
does?’ Quite clearly they will,” Sanford said afterward.
Clemson will begin building the research center and classroom
next year. The research center is expected to open a year from now,
and the $25 million classroom building will be completed by fall
2005, in time for the first class of students seeking graduate
degrees in automotive engineering. The program eventually will have
about 50 students.
Clemson’s foundation plan to buy $21 million in land through
loans to be repaid from the leases from tenants such as BMW.
While the $15 million for the research facility was disclosed
Wednesday, the state agreed to spend the money more than a year ago
under a special bond bill passed by the General Assembly to
encourage BMW to invest at least $400 million and create at least
400 jobs, Hitt said.
The company hired the new workers early this year and has
invested most of the money, company officials said. It has invested
more than $2.5 billion at the plant, and now employs 4,700 people,
with most production workers making $24 per hour.
BMW and former Gov. Jim Hodges announced $60 million in
incentives for BMW in September 2002, including $35 million for a
new interchange on I-85 by the plant, and $25 million for
construction of classrooms for a new Clemson graduate program in
automotive engineering.
BMW, in turn, contributed $10 million to help match $15 million
in state lottery money for an endowment to provide a steady stream
of income to pay three top professors and their researchers.
Automotive suppliers are expected to give $5 million to complete
the match.
The agreement for the $15 million center was not announced
previously because negotiations had not been complete for Clemson’s
International Center for Automotive Research, Hitt said.
Last month, Clemson and state officials worked out a deal with
Miami developer Clifford Rosen that gives Clemson control of most of
the land. Sanford said then a major new tenant would be announced at
a groundbreaking this month.
That day came Wednesday under a clear sky in a patch of freshly
cleared ground in the middle of the forest that surrounds the John
Hollingsworth on Wheels textile machinery plant near the interchange
of I-85 and U.S. 276.
Greenville annexed the 400-acre site a year ago, and is
overseeing the construction of roads and trails on the site paid for
by a $12 million grant from the S.C. State Infrastructure Bank.
About 300 business leaders and politicians gave a standing
ovation when Clemson president Jim Barker announced the new
classrooms would be named the Carroll A. Campbell Jr. Graduate
Education Center.
Campbell, a Greenville native and governor from 1987 to 1995,
attended the ceremony and participated in the groundbreaking. His
negotiations with BMW led to the company’s 1992 decision to build
the South Carolina plant, its first full manufacturing facility
outside Germany.
Helmut Leube, president of BMW’s Greer plant, said Campbell was
“the man who more than anyone else is responsible for BMW coming to
South Carolina.”
Reach DuPlessis at (803) 771-8305 or jduplessis@thestate.com