Japan's number three automaker is after higher North American sales, its largest market, which currently accounts for 30% of sales compared with 25% in Japan so far this year. Industry observers suggest the new plant is a sign that Nissan's financial troubles are behind it.
The company reported a profit for the first half of this year, its second profitable period in nine years. Its U.S. sales have increased in 12 of the last 13 months. Last year, the Japanese automaker accepted financial help from Renault SA, which took a 37% controlling stake in the company.
The incentive package that won the prize was passed several weeks ago in a special legislative session led by Mississippi Gov. Ronnie Musgrove. The incentives require Nissan to spend a minimum of $750 million to build the plant. Additionally, the state is authorized to issue $295 million in bonds for infrastructure improvement.
The company must hire at least 3,000 workers for the factory before a $5,000 annual tax credit per employee kicks in. Once that minimum is reached, the annual tax breaks will last 20 years. Nissan suppliers that move to the area will receive $1,000 per employee in tax credits for five years.
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