Hexcel To Build New Center of Excellence for Advanced Composites Innovation in Utah
May 13 2021 - 2:30PM
Business Wire
Bringing up to 150 new high-paying jobs in 12 years
The Utah Governor’s Office of Economic Development (GOED) is
pleased to announce that Hexcel Corporation will build a flagship
Center of Excellence for Research & Technology (R&T) to
support next-generation developments in advanced composites
technologies in Utah, adding up to 150 new high-paying jobs in the
next 12 years.
“We welcome Hexcel as it expands in Utah,” said Dan Hemmert,
GOED’s executive director. “Their decision to grow here will create
many high-paying jobs for Utahns in skilled science and advanced
technology. Hexcel also has an excellent training program that will
serve to develop Utah’s workforce further and help its employees
develop the skills they need to succeed.”
Hexcel is a global advanced composites technology leader,
manufacturing carbon fiber, woven reinforcements, resins, prepregs,
honeycomb, and additive manufactured parts for customers in
commercial aerospace, space and defense, and industrial markets.
This new R&T center will be the company’s largest center for
innovation and product development in North America and a showcase
for the company’s advanced composites technology, providing space
for future growth and expansion in the years ahead. The company’s
existing operations in West Valley City include its largest
high-performance carbon fiber manufacturing facility in the world.
The site also is home to the company’s U.S. aerospace matrix
operations. About 600 people currently work at the site.
“We’re grateful for the support that Utah continues to provide
to Hexcel, and we’re excited to announce this investment in
innovation today to ensure our continued leadership tomorrow,” said
Nick Stanage, Hexcel chairman, CEO & president. “This new site
will provide much-needed room to expand our research, to broaden
our portfolio, and to offer our customers an enhanced opportunity
to collaborate with us on the latest composite technology
developments for aerospace, space and defense, and industrial
applications.”
Hexcel may earn up to 25% of the new state taxes it will pay
over the 12-year life of the agreement in the form of a Utah
Legislature-authorized Economic Development Tax Increment Finance
(EDTIF) tax credit. The GOED Board has approved a post-performance
tax credit not to exceed $1,531,318. Each year that Hexcel meets
the criteria in its contract with the state, it will earn a portion
of the total tax credit.
The GOED Board also approved an Industrial Assistance Fund
Economic Opportunity Grant for up to $200,000 for
infrastructure-related expenses. The grant will provide
infrastructure support for the Hexcel site and help create better
access to the area.
“Hexcel has been a long-time contributor to West Valley City’s
economy and a reason why Utah is regarded as a marquee location for
advanced manufacturing and composites,” said Theresa A. Foxley,
president and CEO of the Economic Development Corporation of Utah.
“We’re thrilled with the company’s continued investment in our
state.”
“Hexcel has been an important part of the West Valley City
business family for many years,” said Jeff Jackson, director of
Business Development for the RDA and Economic Development Division
for West Valley City. “This expansion represents a long-term
commitment by Hexcel, which includes great employment opportunities
as well as joint long-term economic outcomes. We look forward to
our ongoing partnership.”
State of Utah Tax Credit Projections by the Numbers
Tax revenue:
$6,925,273
Wages:
$146,953,626
Jobs:
150
Capital investment:
$25 million
Timeline:
12 years
About Utah Corporate Incentives
The Utah Legislature has authorized economic development
incentives in the form of post-performance tax credits. Eligible
companies work with the Utah Governor’s Office of Economic
Development to outline specific performance criteria. Once GOED
confirms those criteria have been met, according to statute (U.C.A.
63N-2-106(2)), companies can receive a refund of up to 30% of the
state taxes they paid for up to 20 years. The contract with the
state is post-performance; it only provides a state tax credit if
the company meets its obligations.
About Utah Governor's Office of Economic Development
Under Gov. Spencer J. Cox’s direction, the Utah Governor’s
Office of Economic Development (GOED) provides resources and
support for business creation, growth, and recruitment. It also
drives increased tourism, film production, outdoor recreation, and
mixed martial arts in Utah. Utilizing state resources and private
sector contracts, GOED administers programs in economic areas that
demonstrate the highest potential for development and the most
opportunity for Utahns. Learn more at business.utah.gov or by
calling (801) 538-8680.
About Hexcel
Hexcel Corporation (NYSE:HXL) is a leading advanced composites
company. It develops, manufactures and markets lightweight,
high-performance structural materials, including carbon fibers,
specialty reinforcements, prepregs and other fiber-reinforced
matrix materials, honeycomb, adhesives, engineered core and
composite structures, used in commercial aerospace, space and
defense and industrial applications. Learn more at hexcel.com.
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version on businesswire.com: https://www.businesswire.com/news/home/20210513005891/en/
Contact: Tony Young GOED Media Relations Manager
tonyyoung@utah.gov | 801-538-8722
Contact: Kaye Veazey Hexcel Vice President, Corporate and
Marketing Communications kaye.veazey@hexcel.com
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