Packsize International and the Governor’s Office of Economic Development (GOED) today announced the On Demand Packaging® company will expand its Utah operations, adding up to 354 jobs to the community and an expected $9.2 million in capital investment.
“Packsize is making an exceptional investment in our community,” said Val Hale, executive director of GOED. “The company’s commitment to the environment while improving business efficiency will have a positive impact for years to come. We’re proud they will call Utah home as they continue to expand internationally.”
Founded in Salt Lake City in 2002, Packsize creates an On Demand Packaging® system placed on-site for companies to save an average of 20 to 30 percent in corrugated packaging costs. The just-in-time Packsize system includes custom box-making hardware and software as well as other services to reduce corrugated inventory requirements, increase handling and transportation efficiencies, and minimize wasted shipping space. Packsize has operations in more than 25 countries, and notable domestic customers include Staples and Cabela’s.
“Utah’s bright entrepreneurial community and labor market make it attractive for Packsize to compete globally from here,” said Packsize CEO Hanko Kiessner. “We affirm our commitment to serving as a proud member of Utah’s growing community of companies that are participating in building the Industrial Internet of Things as part of the fourth industrial revolution, with a focus on sustainability and the circular economy.”
The Packsize project will create up to 354 jobs over the next seven years. The total wages in aggregate are required to exceed 110 percent of the county average wage. The projected new state wages over the life of the agreement are expected to be approximately $125,290,823. Projected new state tax revenues, as a result of corporate, payroll and sales taxes, are estimated to be $6,010,146 over seven years.
“Packsize’s innovative technology helps companies decrease waste and improve their bottom line,” said Michael Flynn, chief marketing officer and acting chief of staff at the Economic Development Corporation of Utah. “This win-win value proposition will allow them to continue to prosper for years to come. Having that future growth take place in Utah is a tremendous win for the state.”
Packsize International may earn up to 20 percent of the new state taxes they will pay over the seven-year life of the agreement in the form of a post-performance Economic Development Tax Increment Finance (EDTIF) tax credit rebate. As part of the contract with Packsize, the GOED Board of Directors has approved a post-performance tax credit rebate not to exceed $1,202,029. Each year as Packsize meets the criteria in its contract with the state, it will earn a portion of the total tax credit rebate.