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Automotive, Internet Business Keep the South Atlantic Economy in
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South Carolina
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South Carolina

South Carolina shattered all of its previous records in 1999 by attracting $6.37 billion in capital investment and 30,000 new jobs. The good news continues this year with impressive announcements coming in the automotive/truck sector.

In recent years, the Palmetto State has attracted major assembly plants for Honda, Mack Truck, Western Star, and BMW, and more than 200 parts suppliers that include Bosch, Delphi and Lear. The state offers access within 500 miles to over 1,000 assemblers and suppliers, and the Port of Charleston is a productive and efficient deepwater port.

South Carolina also maintains the lowest corporate income tax rate--5 percent--in the U.S. Southeast. The state offers tax incentives that reduce startup costs and encourage job development. South Carolina also has one of the lowest unionization rates in the nation. Just 6.2 percent of the state's workforce, and .07 percent of the auto sector is union-affiliated.

BMW announced in June that it plans to expand its Spartanburg plant, where its X5 SUV and other vehicles are built, with a $300 million addition. This expansion brings the German company's investment in the state to about $1.7 billion. The project will add 500 jobs at the facility.

Honda of South Carolina Mfg. (HSC) has broken ground on a $20 million, 50,000-sq.-ft. (4,600-sq.-ft.) engine, manufacturing and casting expansion to support its ATV plant in Timmonsville. The operation will produce an engine currently made in Japan. The expansion will increase Honda's investment in the state to over $70 million and the size of the plant to 330,000 square feet (30,600 sq. m.).

"This expansion is consistent with Honda's strategy of starting small and growing larger as our local capabilities grow and as demand increases," says HSC President Yoshiki Ishido.

Complementing the automotive industry, the plastics sector is gaining momentum in South Carolina as suppliers take advantage of the state's available raw materials and location.

Kelowna Industrial Plastics (KIP) announced a $2 million investment in North Charleston to manufacture hoods, sleeper cab cars and other fiberglass parts used in Western Star trucks. "We were attracted here by the presence of our customer, Western Star, and the quality and skill level of production associate applicants routed through the Special Schools program," says Martin Lee, general manager of the Canadian company's new facility.

The Special Schools program provides employers at little or no cost pre-employment training that is 100 percent customized to fit the needs of new and existing business. The program provides and trains instructors, recruits and screens applicants, prepares training sites, secures necessary equipment and supplies and offers post-employment training.

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