Airgas, Inc. (NYSE: ARG) and the Governor’s Office of Economic Development (GOED) announced today that Airgas will build a new specialty gas production facility in Tooele County.
Airgas, one of the nation’s leading suppliers of industrial, medical, and specialty gases, and related products, will build the facility to 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.
“Utah has been recognized as having one of the most diverse economies in the nation thanks to companies like Airgas that bring their unique product offerings to the beehive state,” said Spencer P. Eccles, executive director of GOED. “Airgas’ new plant will strengthen the manufacturing industry in Utah while simultaneously investing in one of our rural counties.”
The project will lead to a significant capital investment by Airgas and the creation of approximately 25 full-time jobs when fully operational. These incented jobs will pay at least 100 percent of the Tooele County average wage, with each position including company contributed health insurance, and 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 is very excited to expand our specialty gas footprint with this new facility in Utah,” said Andrew R. Cichocki, president – Airgas USA, LLC. “Tooele County is the perfect location to support Airgas’ growth in the western states. We look forward to the completion of this project and the start up next spring.”
“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 (EDCUtah). “Airgas’ presence in Tooele County will serve as a catalyst for quality job growth and increased capital investment in the region.”
As part of a contract with Airgas, the GOED Board of Directors has approved a maximum cap tax credit of $106,652 in the form of a post-performance Economic Development Tax Increment Finance (EDTIF) incentive, which is 20 percent of the net taxes Airgas will pay over the 10-year life of the agreement. Each year as Airgas meets the criteria in its contract with the state, it will earn a portion of the tax credit incentive.