Power Company Plans To Expand

Shaw Power Group planning to invest $35 million creating 556 jobs

November 29, 2007

MECKLENBURG COUNTY NC NEWS -- The Shaw Group Inc., with a company in Charlotte known as the Shaw Power Group, will invest $35 million during the next five years creating 556 jobs in North Carolina. The Shaw Group Inc. is utilizing a Job Development Investment Grant (JDIG) between the company and the state to help fund the endeavor. According to the terms of the JDIG, the state will provide a grant funds to 70 percent of the state personal income withholding taxes derived from the creation of new jobs for each year in which the company meets required performance targets. Should the company create all the jobs called for under the agreement and sustain them for 10 years, The Shaw Group could yield as much as $12.67 million in maximum benefits.

Headquartered in Baton Rouge, Louisiana, The Shaw Group was founded in 1987 as a fabrication shop by J.M. Berhnard Jr. and two colleagues. The Shaw Group has within 20 years become a leading provider to both the federal government and the private-sectors in the energy, environmental, infrastructure, and emergency response markets. In 2000, the company acquired the assets of Stone & Webster and expanded into the energy industry. The Charlotte-based Shaw Power Group was strengthened in 2006 when the company acquired a 20 percent share in Westinghouse Electric Co. The Shaw Group provides a diverse variety of power services, from fossil power plant design and construction to providing cradle-to-grave nuclear services. The Shaw Group's annual revenues are expected to surpass $7 billion this fiscal year.

The Shaw Power Group currently employs 780 workers at its downtown Charlotte headquarters and 165 at a facility in west Charlotte. The additional 556 jobs will be primarily for engineers and designers but also will include other professional and administrative positions. While wages will vary by job function and experience, the expected overall average yearly salary for the new jobs will be around $81,000 plus benefits. Well above Mecklenburg County's average wage of $35,672 not including benefits.

J.M. Berhnard Jr., the chairman, president and CEO for The Shaw Group said, "The Shaw Group is enthusiastic about the expanding role Charlotte will play as our Power Group headquarters. The state's high-quality secondary education system and regional universities as well as the tremendous talent pool in the region were key factors in our decision to expand in Charlotte."

Governor Easley announcing the Shaw Group endeavor said, "The decision of this FORTUNE 500 company to expand in North Carolina shows that our state continues to offer the business climate and talented workforce sought by top industries. These global firms recognize that North Carolina's economic development policies help them grow and succeed."

The Shaw Group was awarded the JDIG by North Carolina Economic Investment Committee making this is the 14th JDIG to be awarded this year, and the 69th JDIG awarded since the program's inception in 2002. Since the first grant awarded in 2003, the JDIG program has generated $3.5 billion in investment in North Carolina, and created more than 25,000 jobs. Under terms of the 10-year agreement with The Shaw Group, the N.C. Department of Commerce estimates this economic development project will:

• Generate a cumulative gross product value of $28.25 million.
• Produce a positive, cumulative net state revenue impact of about $7 million.
• Contribute up to $4.2 million to the state's Industrial Development Fund for infrastructure improvements in economically distressed areas of North Carolina. This contribution is required of grant recipients that locate in Tier 3 or more prosperous counties.

Partners who assisted The Shaw Group with this economic development include: The N.C. Department of Commerce, Central Piedmont Community College, Mecklenburg County, City of Charlotte, Charlotte Chamber of Commerce and Duke Energy.

For more information about The Shaw Group, including jobs availability in North Carolina, visit www.shawgrp.com