Plant May Support Expansion Into Commercial Aerospace Sector

The Utah Governor's Office of Economic Development (GOED) Business Development Board met this week, and approved an Economic Development Tax Increment Financing (EDTIF) incentive for a new ATK manufacturing facility.

For decades, Utah has been home for several ATK divisions and Utah wants to be proactive in securing this potential major new plant and the 800 full-time positions it will create over the next 20 years. The Board has offered an EDTIF incentive of $32.732 million over the 20 year period as a refundable Tax Credit based on 30% of new state revenue collected. New State tax revenue would exceed $109 million during the same period. EDTIF incentives are a post performance incentive based on a tax credit of a portion of new state tax revenue collected from payroll, sales and corporate income taxes previously paid.

ATK will be evaluating the state and local incentives and will be making a decision in the near future. ATK is considering an investment of over $250 million in the construction of a new composites manufacturing facility as it considers expanding its business in commercial aerospace. If ATK decides to construct the new facility in Utah, it would ramp up the 800 new positions at an average of 175% of the Davis County average wage. Over the 20 year period, the new positions would receive wages of $1.6 billion.

"This potential capital and workforce investment in Utah will further strengthen Utah's position as a world leader in Aviation and Aerospace composites. It will also benefit hundreds of Utah families and the communities in which they live. ATK has been and will continue to be a major employer and contributor to the high quality of life our citizens enjoy," said Governor Jon Huntsman.

ATK is a $4.6 billion Aerospace and Defense Company with operations located in 21 states, employing over 17,000 staff. The workforce in Utah is 5,840.

FMI: www.atk.com, http://goed.utah.gov/