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RAM Company Gears Up for Significant ExpansionDecember 10 2015 - 1:04 pm
For Immediate Release
Dec. 10, 2015
Michael Sullivan, GOED Communications Director
Brian McCann, RAM Company
RAM Company Gears Up for Significant Expansion
The manufacturer will expand its St. George facility to better serve customers nationwide
SALT LAKE CITY, UT—The Governor’s Office of Economic Development (GOED), along with RAM Company, is pleased to announce that the Washington County manufacturer will expand its St. George operations, generating over 100 jobs and an expected capital investment of $11 million.
“Nearly two-thirds of incented companies have Utah ties prior to receiving an incentive,” said Val Hale, executive director of GOED. “Our most important economic growth happens within our state. We are committed to providing programs that help boost growth for home-grown companies like RAM and look forward to RAM’s continued success.”
Founded in 1975, RAM has executed a diverse portfolio in aerospace design, engineering and manufacturing, supplying products including solenoids, solenoid valves, and check and relief valves. The company has supplied parts for various top-level customers including many in the aerospace industry. Notwithstanding a rich history of involvement in space programs, approximately 80 percent of RAM’s production is now exclusively dedicated to aerospace.
“RAM is proud to be recognized as an important part of Washington County’s economy,” said Kevin Ganowsky, RAM Company president. “St. George has been our home for 40 years, and we are excited to continue to grow our business in southern Utah.”
RAM has indicated that the expansion will create up to 139 jobs over the next eight years. The total wages in aggregate are required to exceed 110 percent of the Washington County average wage. The projected new state wages over the life of the agreement are expected to be approximately $25,618,891. Projected new state tax revenues, as a result of corporate, payroll and sales taxes, are estimated to be $1,864,405 over eight years. The project is expected to generate up to $11 million in capital investment.
“In economic development, like in all business, our best clients are our existing clients,” said Jeff Edwards, president and CEO of the Economic Development Corporation of Utah. “EDCUtah would like to thank RAM Company for continuing to invest in the state, and for selecting Washington County for this tremendous opportunity.”
RAM may earn up to 20 percent of the new state taxes they will pay over the eight-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 RAM, the GOED Board of Directors has approved a post-performance tax credit rebate not to exceed $372,881. Each year as RAM meets the criteria in its contract with the state, it will earn a portion of the total tax credit rebate.
Separate local incentives are also under negotiation.
“RAM is an important part of our city’s economic fabric,” said St. George City Mayor Jon Pike. “We’re thrilled to see them earn so much success and are pleased with their decision to continue growing at home. This is a great win for both their company and our community.”
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 environment and tourist 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 firstname.lastname@example.org