“This expansion is a significant boost for our state’s manufacturing sector, as well as the local communities where they operate,” said Gov. Gary R. Herbert.
SALT LAKE CITY, UTAH (PRWEB) May 14, 2015
The Governor’s Office of Economic Development Board announced today that the board has reviewed and approved an incentive for The Procter & Gamble Company to expand its operation in the Bear River City area of Box Elder County. This expansion is expected, over the coming years, to bring $400 to $500 million in capital investment, along with up to 200 jobs.
“This expansion is a significant boost for our state’s manufacturing sector, as well as the local communities where they operate,” said Gov. Gary R. Herbert. “Procter & Gamble has invested greatly in Utah because we strive to maintain an innovative and business-friendly environment. We hope more and more businesses will take notice.”
P&G operates a paper products manufacturing facility in Box Elder County. The expansion will create up to an additional 200 jobs over the next 20 years. The total wages, including medical benefits, in aggregate are expected to exceed 100 percent of the Box Elder County wage. The projected new state wages over the life of the agreement are expected to be approximately $197.9 million. Projected new state tax revenues, as a result of corporate, payroll and sales taxes, are estimated to be approximately $37.2 million over 20 years. The expansion is expected to generate between $400 to $500 million in capital investment in the new plant.
“This facility is an important part of P&G’s U.S. manufacturing footprint, and its expansion is a strategic part of P&G’s North American Supply Network Re-design,” said Yannis Skoufalos, P&G’s global product supply officer. “We are extremely grateful to all state and local officials, including Governor Herbert, for their support.”
As part of the contract with P&G, the GOED Board of Directors has approved up to a maximum tax credit of $11,146,615 in the form of post-performance Economic Development Tax Increment Finance (EDTIF) incentive, which is 30 percent of the new state taxes P&G will pay over the 20-year life of the agreement. Each year as P&G meets the criteria in its contract with the state, it will earn a portion of the total tax credit incentive.
“Procter & Gamble’s decision to expand its existing state-of-the-art facility in Box Elder County will continue to serve as a catalyst for quality job growth and increased capital investment in Utah,” said Jeff Edwards, president and CEO of Economic Development Corporation of Utah (EDCUtah.) “It is very exciting to see a global leader like P&G select Utah for a second time to grow their business.”
About the Utah Governor’s Office of Economic Development (GOED)
The Governor’s Office of Economic Development (GOED) charter is based on Governor Gary Herbert’s commitment to economic development statewide. Utah’s economic development vision is that Utah will lead the nation as the best performing economy and be recognized as a premier global business destination. The mandate for this office is to provide rich business resources for the creation, growth and recruitment of companies to Utah and to increase tourism and film production in the state. GOED accomplishes this mission through the administration of programs that are based around targeted industries or “economic clusters” that demonstrate the best potential for development. GOED utilizes state resources and private sector contracts to fulfill its mission. For more information please contact: Michael Sullivan, 801-538-8811 or mgsullivan(at)utah.gov
About Procter & Gamble
P&G serves nearly five billion people around the world with its brands. The Company has one of the strongest portfolios of trusted, quality, leadership brands, including Always®, Ambi Pur®, Ariel®, Bounty®, Charmin®, Crest®, Dawn®, Downy®, Duracell®, Fairy®, Febreze®, Gain®, Gillette®, Head & Shoulders®, Lenor®, Olay®, Oral-B®, Pampers®, Pantene®, SK-II®, Tide®, Vicks®, Wella® and Whisper®. The P&G community includes operations in approximately 70 countries worldwide. Please visit http://www.pg.com for the latest news and in-depth information about P&G and its brands.
Procter & Gamble