Gun maker Richland County refused tax breaks for plans to build $33M plant in Upstate SC

Pickens County is welcoming a new firearms manufacturer — the same one that Richland County recently declined to give tax incentives to in light of nationwide gun violence.

FN America, a longstanding firearms maker headquartered in Virginia, will build a $33 million plant in the Upstate’s Pickens County as it expands its line of available weapons. The news comes a week after Richland County balked at offering incentives to expand the company’s existing Richland County facility.

The issue came down to gun control and using public funds to incentivize the sale of firearms, several Richland County Council members said after the vote.

FN America broke ground on its Richland County manufacturing plant in 1979 and has grown significantly in the decades since. The facility has been FN America’s primary manufacturer and has produced more than 1 million small arms under contract with the U.S. Department of Defense, according to a news release from the company.

The company had planned to expand its Richland County site and was on track to receive tax incentives from the County Council to do so. Earlier this month, the county voted 7-3 to approve an incentive equaling a 60% tax break for 12 years in exchange for a $16.5 million investment and the creation of 100 new jobs.

But at the final vote on April 18, several council members changed their votes, killing the deal in a 5-5 vote, with one member abstaining.

“I have no problems if that company wants to sell guns, then it’s fine, but do not use taxpayer dollars,” Councilmember Yvonne McBride said during the meeting. “This is not about gun control. This is about using taxpayer dollars to incentivize the sale of guns.”

Another Councilmember, Allison Terracio, shared similar concerns.

“It is very clear that there is a direct line from these manufacturers to the epidemic of gun violence that we have today,” Terracio previously told The State.

Richland County Council members Derrek Pugh (District 2), Yvonne McBride (District 3), Allison Terracio (District 5), Cheryl English (District 10) and Chakisse Newton (District 11) voted “no” to the tax break for FN America.

Council members Jason Branham (District 1), Paul Livingston (District 4), Don Weaver (District 6), Gretchen Barron (District 7) and Overture Walker (District 8) voted in favor of the tax break.

Jesica Mackey (District 9), who represents the area where FN America’s facility is located, recused herself from the vote due to a conflict of interest with the business.

A new factory

The new Pickens County facility appears to be larger than the proposed expansion planned in Richland County and has also been in the works for some time.

Pickens County Council had already tentatively approved incentives for the project, dubbed “Sierra Foxtrot,” on second reading April 3. The County Council gave final approval Wednesday in a 5-1 vote, with Councilmember Claiborne Linvill as the sole “no” vote.

“Giving tax breaks to the gun industry was going to be a controversial issue for many of my constituents, so I proposed that the county ask the company to offer safety or training programs as part of their deal,” Linvill told The State in an emailed statement. “My request went unanswered until the week of the third reading, when I learned no such programs would be negotiated. Therefore, I voted no, having felt like the county missed an opportunity to make this deal better for all our community.”

Pickens County is notably more conservative than Richland County. In the 2020 presidential election, 68% of Richland County voters cast a ballot for President Joe Biden, while nearly 75% of Pickens County voters opted for former President Donald Trump.

While the Richland County deal promised a $16.5 million investment and the creation of 100 jobs to expand an existing facility, the Pickens County deal is for a $33 million investment and the creation of 176 jobs at an entirely new, as-yet unconstructed facility in Liberty.

Pickens County’s incentives for the project include giving the company land for the factory, a $1.5 million grant to go toward preparing the site for construction, and a 20-year tax break, according to an ordinance passed Wednesday.

The Liberty factory will be 100,000-square feet “or more,” according to an announcement of the deal by Gov. Henry McMaster’s office. The company plans to break ground in 2024 and finish construction in 2025.

The State has contacted FN America for more information on the company’s plans for both the Richland and Pickens county sites. The company has yet to respond to those requests.

McMaster is touting the FN America deal as another success for South Carolina’s growing manufacturing economy.

“FN America is one of South Carolina’s finest employers, and we are proud to see them establish new operations in Pickens County. We are grateful for their commitment to South Carolina and look forward to watching them continue to succeed in the years to come,” he said in a statement Wednesday.

At its roots, the company was founded as a military arms dealer, first providing small arms for the Belgian military in the last 1800s, according to reporting from firearms trade publications. FN America is a subsidiary of the international FN Herstal brand. The American branch was founded in 1979. The company still provides weapons for the military and law enforcement, as well as civilians.

The governor’s office made the announcement Wednesday. The State has not been able to reach any representatives from FN America, but the company’s president and CEO Mark Cherpes made a statement as part of the governor’s announcement:

“FN America has experienced significant growth over the last several years and demand for our products continues to increase in all market segments that we serve. Our new facility in Liberty, South Carolina will allow us to expand our manufacturing capabilities and grow our highly skilled workforce to meet that new demand,” Cherpes said.