One of the country’s leading producers of industrial, medical and specialty gases will build a production plant in Tooele City that will be operational by next spring and bring 25 jobs to Tooele County, according to the state.
The Governor’s Office of Economic Development announced Friday that the GOED board of directors approved a post-performance tax incentive with a cap of $106,652 for Airgas, Inc., a Radnor, Pa.-based producer of industrial gases and related products.
Airgas intends to build a facility to produce high-purity and precision-blended specialty gases in Tooele County, according to GOED’s prepared statement.
“Airgas’ new plant will strengthen the manufacturing industry in Utah while simultaneously investing in one of our rural counties,” said Spencer P. Eccles, executive director of GOED.
Peter Corroon, manager of Ninigret Depot, confirmed that Airgas, Inc. has made a tentative offer on land on the west side of Ninigret Depot off of Industrial Road.
“We are excited to have Airgas come to Utah and build their facility here in Tooele City,” he said.
Tooele City has also offered Airgas a performance-based tax incentive, according to Randy Sant, Tooele City economic development consultant.
Tooele City’s Redevelopment Agency Board of Directors, which consist of the city council, approved a five-year incentive of a refund of up to 33 percent of Airgas’ property tax increment with a cap of $200,000, Sant said.
To receive the incentive, Airgas must make a $6.5 million capital investment in the new facility and employ at least 20 people at a wage equal to or greater then the county’s average wage, according to Sant.
Tax increment is the amount of property tax collected above the amount currently being collected for the property where the plant will be located.
The state tax incentive approved by the GOED board of directors includes a maximum cap tax credit of $106,652 in the form of a tax increment incentive, over a 10-year period.
As part of the incentive contract with GOED, Airgas agreed to the creation of approximately 25 full-time jobs when fully operational. These jobs will pay at least 100 percent of the Tooele County average wage with each position including company-contributed health insurance.
GOED expects the new Airgas facility will lead to new state wages of $1,475,181 over the 10-year life of the agreement. The state will also benefit from $462,998 in new state taxes over the 10 years.
“Airgas’ decision to locate in Utah is a great win for the state,” said Jeff Edwards, President and CEO of Economic Development Corporation of Utah. “Airgas’ presence in Tooele County will serve as a catalyst for quality job growth and increased capital investment in the region.”
Airgas, a leading U.S. producer of atmospheric gases, produces carbon dioxide, dry ice, and nitrous oxide. It is one of the largest U.S. suppliers of safety products, and a leading U.S. supplier of refrigerants, ammonia products, and process chemicals.
They employ 15,000 associates that work in approximately 1,100 locations.
The Tooele facility will produce high-purity and precision-blended specialty gases. Airgas specialty gases are used in research and commercial laboratories, for environmental monitoring and for generating lasers used in healthcare and in manufacturing.