BURGAW — Cardinal Foods, located on the southern outskirts of Burgaw, announced plans last week to invest more than $26 million into a 56,000-square-foot, food-grade processing facility. The move will create about 50 additional jobs and make the company “one of the largest sweet potato fry manufacturers in the world,” according to CEO Corey Barnhill.
“Due to a lack of processing capacity regionally, a large majority of fruits and vegetables travel outside of North Carolina — as far away as Idaho and Canada — to be processed,” Barnhill said in a statement released by Wilmington Business Development (WBD). The private nonprofit organization oversees business recruitment and “industrial retention” for Wilmington, New Hanover, and Pender counties.
“This expansion represents an enormous competitive advantage that will place Cardinal in a great spot for future growth,” Barnhill added.
The company will receive a total of $467,500 financial incentives from the town of Burgaw, Pender County, and the state.
Although WBD did not outline any details about the incentives in the release, its CEO, Scott Satterfield, said the organization played a role in the negotiations.
“Manufacturing, including value-added food processing, is a priority for our region,” Satterfield said. “So, when we see a proven, existing industry ready to expand here on this scale, we are eager to do everything we can to support it.”
On Thursday morning, Pender County Manager Chad McEwen pointed to details discussed at a commissioners’ meeting last November. He told commissioners the expansion would qualify the company for a $50,000 grant from the state through the One North Carolina Fund, a cash-grant program that allows the governor to quickly fund competitive job-creation projects.
The company also was awarded a $350,000 grant from the N.C. Department of Commerce through Building Reuse, a rural grant fund. The program requires a $67,500 local match, which will be split evenly between Pender County and Burgaw. Commissioners agreed to the contribution on the condition that it be provided over a three-year period and that Cardinal Foods satisfy certain capital investment, hiring, and wage requirements.
McEwen noted the increase in tax revenues paid to the county because of the expansion will exceed the county’s incentive contribution within the first year.
The new jobs will bring an average salary of $38,458, nearly $5,500 more than the county average, according to WBD.
The Burgaw company currently processes and distributes fruit and vegetables for farmers across the eastern U.S. The new facility will include equipment to receive raw material to increase the production of sweet potatoes and butternut squash.
“Burgaw offers a logistical advantage with its proximity to both major interstates I-40 and I-95 as well as the Port of Wilmington,” Pender County Chairman George Brown said in a statement issued by WBD. “We welcome Cardinal Foods’ continued investment in Pender County, further capitalizing on the opportunities available to our region on the agribusiness import and export side.”
Burgaw Mayor Pete Cowan also lauded the expansion.
“Given the challenges related to the pandemic, to have a project of this magnitude coming to fruition in Burgaw says all the right things about establishing and growing business here,” Cowan said.
According to WBD, the new facility will receive potatoes, which will then be steamed, peeled, diced, sorted, and prepared for further processing. They will be battered, fried, and packaged in numerous sizes, and shipped to retail customers, restaurants, and food-service operators around the world.
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February 21, 2021
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Burgaw sweet-potato fry processor to invest $26 million in expansion - Port City Daily
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