As a result, Chiquita will be moving more than 300 employees, whose average salary is $107,000 a year, out of the Tri-state.
“When it’s a priority to make sure incentive packages begin returning an investment for taxpayers as quickly as possible, we’re not going to be irresponsible and give away the store to try and keep a company that fundamentally doesn’t want to be here or which has already made up its mind to leave,” Nichols said in a statement.
More than money, one factor in the company’s decision to leave Ohio after 24 years was cuts in international flights at Cincinnati/Northern Kentucky International Airport. The company said in a statement the Charlotte airport gives it better international access.
“Charlotte provided the most compelling economic opportunity to lower our long-term operating costs and the region is an attractive community for our employees,” said Chiquita Chairman and Chief Executive Officer Fernando Aguirre. “Importantly, the Charlotte airport provides improved access to international markets, customers and Chiquita operations around the world.”
The move gives Chiquita an estimated cost savings of $4 million a year during 10 years, according to the company.
Cincinnati loses a former Fortune 500 company headquarters. The relocation of the banana and produce company includes more than 300 employees in Cincinnati, according to Chiquita. It also includes a consolidation of 100 more jobs from other U.S. locations to Charlotte, with the move expected to be completed by the end of 2012, Chiquita said.
Chiquita moved to Cincinnati from New York in 1987 when it was owned by Carl Lindner Jr.
The loss to the community impacts the city’s image, said Larry Gales, associate professor of management for University of Cincinnati.
Chiquita is looking for a less costly way to do business and costs of operations in North Carolina are less than Ohio, Gales said. In North Carolina, the company will pay fewer taxes, wages and receive abatements, he said.
“The job loss is real,” he said. “It’s people we’re losing to Charlotte. I think the biggest impact is psychologically.”
The region’s economy is still healthy, said David Main, president of Hamilton County Development Corp.
“You hate to lose a marquee headquarters company,” Main said.
However, it is a part of doing business, said Chris Kemper, spokesman for Cincinnati USA Regional Chamber.
“Companies will always move in, move out, start up or die,” Kemper said. “Our economy continues to grow.”
The Associated Press contributed to this report.
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