Governor Josh Stein announced on Apr. 7 that SMBC Group, one of Japan’s largest financial institutions, will establish its second U.S. headquarters in Charlotte, creating 2,000 jobs over six years and investing $50.5 million in Mecklenburg County.
The move is expected to have a significant impact on the local economy by bringing new employment opportunities and strengthening North Carolina’s ties with international business partners. The Office of the Governor of North Carolina serves the entire state, according to the official website.
Stein met with company leaders during a business development trip to Tokyo last fall as part of efforts to recruit them to North Carolina. “Japan is one of North Carolina’s top economic partners, and I’m honored to welcome another, leading Japanese company to our state,” said Governor Josh Stein. “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 is part of Sumitomo Mitsui Financial Group (SMFG), which operates more than 150 offices across nearly 40 countries and employs about 120,000 people worldwide. The new Charlotte hub will support multiple business units and expand talent diversity within the company.
“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,” said Hirofumi Otsuka, CEO for SMBC Americas. He added that Charlotte offers “a deep pool of talent” that will help position their bank for long-term success while contributing economically.
North Carolina Commerce Secretary Lee Lilley said: “Charlotte is the premier destination for world-class financial services companies like SMBC to find talent and drive growth.”
The average salary for all new positions at SMBC will be $165,316 compared with Mecklenburg County’s average wage of $90,706. The project includes a Job Development Investment Grant (JDIG) estimated over twelve years at up to $70 million if job creation targets are met; it could increase state economic output by $13.4 billion during this period.
Because Mecklenburg County is classified as Tier 3 under state economic guidelines, about $23 million from JDIG proceeds will go into an account supporting infrastructure upgrades in rural communities statewide—helping less advantaged areas benefit from increased tax revenue generated by such projects.
N.C. Senator Caleb Theodros said: “Charlotte is a major center for international commerce… We look forward to supporting this great Japanese company as it puts down roots in our state.” N.C Representative Becky Carney added: “We understand the complexities and needs of the financial services industry… We stand ready to help this company make connections and expand opportunities.” Partner organizations included educational institutions and local government agencies who collaborated on bringing this project together.
The Office of the Governor executes state laws as chief executive and leads policy through budget direction and granting pardons; it also serves as commander-in-chief of the National Guard with authority over executive appointments according to its official website.
