FOREIGN DIRECT INVESTMENT - JAPAN

North Carolina had another impressive year generating foreign direct investment (FDI). Of the total 111 projects announced, 26 were sourced overseas, contributing more than $1.8 billion to the year’s announced capital investment. Top markets for these projects include Germany, Finland, and Canada, however Japan was the most productive with projects totaling $10.35 billion in capital investment and 3,396 new jobs*, strengthening North Carolina’s established economic development ties with Japan. 

In 2023, Toyota announced two expansions of its “Toyota Battery Manufacturing North Carolina” (TBMNC) facility, one in May for $2.1 billion and another in October for $8 billion and 3,000 additional jobs. Including an earlier expansion announced in 2022, the project is now valued at $13.9 billion and will create more than 5,000 jobs. In 2021, Toyota announced it was building its first North American battery manufacturing plant in Liberty, investing $1.29 billion and creating 1,750 jobs to produce batteries for Toyota’s hybrid vehicles and for battery electric vehicles long term. 

Dai Nippon Printing Co., Ltd. (DNP) announced it will create 352 new jobs in Davidson County and will invest $233 million to build its first US advanced manufacturing facility in Linwood, producing lithium-ion battery pouches which encase and protect Electric vehicle (EV) battery cells. The company has also developed and produced packaging for smartphones, tablets, and laptops for more than three decades, providing lighter and lower profile pouches that resist heat and vibrations, protect from water, extend battery life, and increase fuel efficiency. 

North Carolina also announced the expansions of Honda Aircraft Company, Inc. In July, Honda Aircraft Company announced it will develop and produce the HondaJet 2600 model, a longer-range version of its HondaJet light aircraft at its Greensboro facilities, creating 280 jobs. The company will invest an additional $55.7 million in Guilford County for production, bringing its total investment in the state to over $335 million. The project will establish production lines to manufacture the new jet, focusing initially on the plane’s critical design phase and production readiness, requiring significant R&D resources. 

DNP, Honda Aircraft Company, and Toyota join the more than 200 Japanese companies that have a presence in North Carolina. Every day, more than 30,000 North Carolinians go to work for Japanese companies with more predicted to start within the next five years. 

In October, Governor Roy Cooper, North Carolina Department of Commerce Secretary Machelle Baker Sanders, and Economic Development Partnership of North Carolina CEO Christopher Chung travelled with state and local partners to Japan to participate in the annual Southeastern United States/Japan (SEUS/Japan) Economic Development Conference in Tokyo. This conference is the premier economic development partnership between the eight states comprising the Southeastern United States and Japan. 

North Carolina will in turn host SEUS/Japan from October 27-29, 2024, in Charlotte. This milestone event will highlight North Carolina’s business-friendly environment for overseas investment and build greater ties between the state and Japan. The conference is also intended to encourage export ties for North Carolina and other Southeastern companies selling goods in Japan. Governor Cooper appointed Sean Suggs, president of Toyota Battery Manufacturing, North Carolina, as the next chairman of SEUS.  

While in Japan, Governor Cooper, Secretary Sanders, and Christopher Chung met with leaders of businesses currently in North Carolina, as well as companies looking to come to the state. One such company was Dai Nippon Printing Co., which in November announced its lithium-ion battery pouch manufacturing facility would be coming to Linwood. 

The group also met with FUJIFILM President and CEO Teiichi Goto and other company leaders to discuss the continued partnership and the company’s facilities in the state. In March 2021, FUJIFILM Diosynth Biotechnologies USA Inc. announced it will build North America’s largest end-to-end biopharmaceutical manufacturing facility in Holly Springs. FUJIFILM also has a Morrisville campus. 

Sumitomo Forestry President and CEO Toshiro Mitsuyoshi and other company leaders also took time to connect with the North Carolina delegation to discuss the company’s work in Randolph County and Charlotte. In December 2022, Sumitomo Forestry America, Inc. announced it will establish a manufacturing facility in Randolph County. The group also met with Morinaga Representative Director and President Eijiro Ota and other company leaders. Morinaga’s first Hi-Chew production plant in the United States opened its doors in Mebane in 2015. 

Lastly, Governor Cooper, Secretary Sanders, Christopher Chung, and North Carolina Biotech Center CEO Doug Edgeton met with Kyowa Kirin, a Global Specialty Pharmaceutical company that was in the last stages of its investment decision. The group was able to answer the remaining questions company executives had. ** 

It is clear that the partnership between North Carolina and Japanese businesses is strong. Japanese businesses choose North Carolina for many reasons, including its world-class education systems, business friendly climate, and access to the largest manufacturing workforce in the Southeast. Japanese investment in North Carolina will have a long-term impact on the state's economy and the quality of life of those who call North Carolina home. 

*These investment and job numbers include Toyota’s two 2023 expansions to the TBMNC. The EDPNC assisted Toyota only in its initial project announcement in 2021. 

** In February 2024, Kyowa Kirin announced it will invest $200 million in a new manufacturing Center of Excellence in Sanford, North Carolina, creating 102 new jobs.