What do socks and high tech electronic machines have in common?
Utah companies that make both products recently received refundable tax credits from the Governor’s Office of Economic Development (GOED) in order to expand their operations and hire new employees.
Beijer Electronics, which recently expanded and moved its Salt Lake operations, will create 71 new jobs over the next 10 years.
Zhejiang Walt Technologies, one of the largest sock knitters in the world, announced it will be creating 130 to 150 new jobs at the Lin Manufacturing and Design plant, which has been in Cache Valley since the early 1990s.
Beijer, which currently employs 94 people, manufacturers and designs complex electronic hardware and software. These include human-machine interface panels used by operators to control large machinery or processes inside factories, and rugged panel-mount or handheld human-machine interface products designed to perform in extreme environments commonly found in the oil and gas, marine and off-shore industries.
As part of its contract with Beijer Electronics, the GOED Board of Directors approved a maximum cap tax credit of just more than $1 million. That is 20 percent of the net taxes the company will pay over the 10-year life of the agreement. During that time, the company is expected to pay out nearly $38 million in new state wages at 125 percent of Salt Lake County’s annual wage including benefits. It will generate $5.3 million in new state tax revenues and $600,000 in capitol expansion.
“I am excited about the opportunity that Utah provides to the Beijer Electronics, Inc., America’s Group,” said Barry Hobbs, the company’s president and CEO in the Americas. “The local workforce is richly populated with educated and talented individuals who are motivated for success. The Utah infrastructure and technology services are critical in making the Salt Lake Region the perfect headquarters for many years to come.”
Lin Manufacturing plans to invest $4 million in capital to build the proposed hosiery manufacturing in Cache Valley. The new facility will run three shifts five days a week and has the potential to manufacture 14,000 dozen socks per week.
Zhejiang Walt Technology is a China-based corporation established in 2000 that has a workforce of about 1,500 people that produces about 50 million pairs of socks, hosiery, tights and other knitted products a year for major brands and retailers around the world.
“We are very excited and pleased to be able to expand U.S. Manufacturing positions in utah and wanted to thank the state for its support of this major project for our company,” stated Joe Schulte, vice president and general manager of Lin.
Under the seven-year contract with GOED, the company will receive a $261,720 post-performance refundable tax credit, or 15 percent of the new state tax revenue.
Over the life of that agreement, Lin Manufacturing will pay more than $27 million in new state wages and $1.7 million in new state taxes, with positions paying on average a minimum of 100 percent of Cache County’s average yearly wage including benefits.