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Mebane approves incentive agreement as Morinaga proposes $136 million expansion and 204 jobs
Summary
The Mebane City Council approved a performance agreement with Morinaga America after a public hearing in which the company said it would invest about $136 million and create 204 jobs at a second factory on its Mebane site; council staff described a phased cash grant and a waiver of inspection fees as part of the local package.
Mebane’s City Council voted to approve a local performance agreement with Morinaga America after a public hearing on Aug. 5 in which company leaders described plans to build a second factory and double local production capacity.
Morinaga president Noriyuki Nishikawa told the council the new facility represents an investment of about $136,000,000, with construction starting in October 2024 and production scheduled to begin in January 2027. Nishikawa said the expansion would create 204 new full‑time jobs locally and cited strong U.S. sales of the company’s Hi‑Chew products as the driver for the move.
City staff summarized the proposed incentive package, which includes cash incentive grants paid over five years, proration provisions if job or investment thresholds aren’t met, and a waiver on building and inspection fees capped at $500,000. Interim City Manager Preston Mitchell said the staff analysis shows the package remains a net positive to the city based on projected property and payroll tax revenues.
The council closed the public hearing, moved to approve the performance agreement “based on the findings that the company will be expanding and add $115,399,000 to the tax base, creating 204 new jobs,” and carried the motion by voice vote. The transcript records vocal approvals but does not list a roll‑call tally.
Why it matters: The project is one of the largest private investments announced for Mebane in recent years and is expected to expand the local manufacturing base and payroll. The incentive agreement ties future local payments to performance metrics and allows the city to prorate grants if the company fails to meet job or investment benchmarks.
What’s next: The agreement’s incentive payments will be paid after certificate of occupancy milestones and subject to the proration and clawback language described in the contract; staff will proceed with the performance agreement implementation steps outlined in the contract.
