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Pactiv Believes Utah is Made of the Right Material to Help it GrowApril 10 2014 - 11:46 am
For Immediate Release
April 10, 2014
Michael Sullivan, GOED Communications Director
Tori Berndt, Communications Manager
Pactiv Believes Utah is Made of the Right Material to Help it Grow
One of the largest manufacturers and distributors of foodservice products selects Utah
Salt Lake City, UTAH — The Governor’s Office of Economic Development (GOED) has approved a tax incentive that would allow Pactiv, LLC to expand its presence in Utah by establishing a new manufacturing/distribution facility in Salt Lake County.
Pactiv is one of the largest manufacturers and distributors of food packaging and foodservice products in the world. Supplying major foodservice retailers, food processors, food packers, supermarkets and restaurants retailers, the company’s product lines include plastic, paper and aluminum food packaging products.
“Utah’s manufacturing sector is an essential part of the state’s economy and includes everything from aerospace to nutritional foods manufacturing,” said Spencer P. Eccles, GOED executive director. “This sector continues to grow because internationally respected companies like Pactiv see the business friendly environment Utah has to offer and choose to call this great state home.”
Pactiv is expecting to make a capital investment of approximately $52 million to support the expansion project. Property improvements and personal property equipment for manufacturing and warehouse activities will make up the bulk of this investment. This expansion will also lead to an estimated $28.8 million in new state wages and an estimated $5.8 million in new state taxes over the 10-year life of the agreement.
“The expansion project is highly competitive with other states and we are pleased to select Utah,” said Pactiv President and CEO, John McGrath. “Utah is a great place to do business for our company and we thank the State for its support.”
In addition to economic dollars being brought to the state, as Pactiv selects Utah for the expansion, the project will bring 60 new jobs to Utah. These incented jobs will pay 125 percent of the Salt Lake County wage and include benefits.
Pactiv is privately held and currently employs more than 11,000 people around the world. Pactiv is headquartered out of Lake Forest, Ill., operates in seven countries and serves its global client base through more than 50 manufacturing plants, mixing centers and distribution centers.
“Pactiv is a world-class company and this is a great win for Utah,” said Jeff Edwards, President and CEO of Economic Development Corporation of Utah. “It is good to see the collaborative economic development work in our state continue to create an environment where companies feel confident choosing Utah for their expansion.”
As part of a contract with Pactiv, the GOED Board of Directors has approved a maximum cap tax credit of $871,010 in the form of a post-performance Economic Development Tax Increment Finance (EDTIF) incentive, which is 15 percent of the net taxes Pactiv will pay over the 10-year life of the agreement. Each year as Pactiv meets the criteria in its contract with the state, it will earn a portion of the tax credit incentive.
About the Utah Governor’s Office of Economic Development (GOED)
The Governor’s Office of Economic Development (GOED) charter is based on Governor Gary Herbert’s commitment to economic development statewide. Utah’s economic development vision is that Utah will lead the nation as the best performing economy and be recognized as a premier global business destination. The mandate for this office is to provide rich business resources for the creation, growth and recruitment of companies to Utah and to increase tourism and film production in the state. GOED accomplishes this mission through the administration of programs that are based around targeted industries or “economic clusters” that demonstrate the best potential for development. GOED utilizes state resources and private sector contracts to fulfill its mission. For more information please contact: Michael Sullivan, 801-538-8811 or email@example.com
For more information about Pactiv, visit http://www.pactiv.com/.