Governor Stein Announces Major SMBC Expansion in Charlotte
In a significant economic development for North Carolina, Governor Josh Stein has revealed that SMBC Group, a leading Japanese financial institution, will open its second U.S. headquarters in Charlotte. This strategic move is projected to generate 2,000 jobs over six years and includes a $50.5 million investment in Mecklenburg County.
Governor Stein’s successful recruitment of SMBC to North Carolina followed his business mission to Tokyo last fall, where he engaged with company leaders. He stated, “Japan is one of North Carolina’s top economic partners, and I’m honored to welcome another, leading Japanese company to our state. Charlotte, the second biggest banking center in the United States, will be an ideal home for SMBC’s second North American headquarters as the bank continues to grow.”
SMBC, headquartered in Tokyo, is part of the Sumitomo Mitsui Financial Group, Inc. (SMFG), one of Japan’s largest banking groups. The company operates over 150 offices in nearly 40 countries, employing around 120,000 people. With a history spanning four centuries in Japan and a century in the U.S., SMBC offers diverse financial services such as banking, leasing, and securities. The new Charlotte facility will serve as a critical hub for the company’s expansion in business operations and workforce diversity.
Hirofumi Otsuka, CEO for SMBC Americas, remarked, “As SMBC continues to grow substantially in the United States, Charlotte is a standout location for us to invest in North Carolina for the long term in a major expansion that will establish our roots in the community. A major financial services hub, Charlotte has a deep pool of talent that we will tap into and help build out as we position our bank for long-term success while contributing to the broader local economy. We appreciate the support of Governor Stein and other public leaders as we set out to create 2,000 jobs over the next six years.”
North Carolina Commerce Secretary Lee Lilley added, “Charlotte is the premier destination for world-class financial services companies like SMBC to find talent and drive growth. Japanese companies are the top source of foreign direct investment into North Carolina, and SMBC is a welcome addition to the family of Japanese companies that call North Carolina home.”
The upcoming positions will offer an average salary of $165,316, significantly higher than Mecklenburg County’s average wage of $90,706. To facilitate this project, the state has approved a Job Development Investment Grant (JDIG), which anticipates a $13.4 billion economic boost over 12 years. The JDIG agreement could reimburse SMBC up to $70,032,000, contingent on the achievement of job creation and investment milestones.
Furthermore, because Mecklenburg County is classified as a Tier 3 economic area, the JDIG agreement will allocate $23,344,000 to the state’s Industrial Development Fund – Utility Account, aimed at supporting infrastructure improvements in rural communities. This initiative ensures that even when jobs are created in more developed areas, economically challenged regions also benefit from the generated tax revenue.
N.C. Senator Caleb Theodros expressed pride in the announcement, stating, “Charlotte is a major center for international commerce, and it’s a point of pride to add the SMBC name to our region’s calling card. We look forward to supporting this great Japanese company as it puts down roots in our state.”
N.C. Representative Becky Carney emphasized the collaborative efforts involved, saying, “Many local, regional, and state economic development teams worked closely over many months to make today’s announcement possible. We understand the complexities and needs of the financial services industry, and everyone in Charlotte and Mecklenburg County welcomes SMBC. We stand ready to help this company make connections and expand opportunities for people in our region.”
The project was a collaborative effort involving the North Carolina Department of Commerce, the Economic Development Partnership of North Carolina, the North Carolina General Assembly, the North Carolina Community College System, and several local partners including the University of North Carolina at Charlotte, Central Piedmont Community College, Mecklenburg County, the City of Charlotte, Charlotte Center City Partners, and the Charlotte Regional Business Alliance.
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