SHELBY An industrial electric-motor company is expanding its Cleveland County operation to accommodate a growing demand for wind-powered technology, creating 166 new jobs, officials announced on Tuesday.

Headquartered in Fort Smith, Ark, and with a plant in Kings Mountain, Baldor Electric Company is the North American leader in industrial electric motors, according to a release from Gov. Bev Perdue's office.

The company began making electric motors in Kings Mountain in 1983. ABB Ltd. of Zurich, Switzerland - which has its North American headquarters in Cary - bought Baldor in January 2011 as part of its strategy to become a global leader for movement and control in industrial applications.

According to the release, the Shelby project was made possible in part by a $400,000 grant from the One North Carolina fund. Baldor is renovating the former Copeland air-compressor manufacturing plant on a 30-acre site along U.S. 74 east of Shelby.

Lt. Gov. Walter Dalton and Commerce Secretary Keith Crisco made the industrial announcement Tuesday at the Don Gibson Theater in Shelby.

Michael Chrisawn, president of the Cleveland County Chamber of Commerce, said Baldor's project represents a $17 million investment with the potential for additional growth. Average annual wages will exceed Cleveland County's average of $32,344 and the annual payroll will be more than $7.3 million.

It is also welcome news in a county with a 10.9 percent unemployment rate as of October.

"This is one of the best announcements we've had in quite some time," Chrisawn said. "And we're pleased it's an existing industry."

According to the release, the combination of Baldor and ABB Ltd. allowed ABB to increase its presence in North American markets while aiding sales of Baldor's products globally through ABB's worldwide distribution network. The addition of Baldor's 6,800 North American employees brings the number of ABB's employees on this continent to approximately 17,000.

Ken Mooney, existing industry manager with the Cleveland County Economic Development Partnership, said the group started working with Baldor on the expansion in June.

"It was competitive," he said. "They looked at sites across the country."

The 269,000-square-foot Copeland plant opened in Shelby in 1981. In 2005, the company announced it was closing, eliminating about 300 jobs.

"That hurt a lot," Mooney said. "But we're glad Baldor picked Shelby. It's a good way to start the New Year."

Cleveland County Manager Eddie Bailes called Baldor "a great corporate citizen."

"We're excited about this opportunity for our citizens," he said. "And it's a great opportunity to continue using a facility that's been in Cleveland County since 1981."

Bailes said that under a proposed industrial incentive grant, Baldor would get back property taxes in the amount of about $62,000 a year for 10 years. He said county commissioners would probably act on the tax-break proposal at their Jan. 17 meeting.

The One North Carolina Fund provides financial assistance, through local governments, to attract business projects that will stimulate economic activity and create new jobs in the state, according to the release from the governor's office.

Companies receive no money up front and must meet job-creation and investment-performance standards to quality for grant funds. These grants also are contingent upon local matches.