WEST VALLEY CITY -- Utah continues to attract the interest of the world's leading high-technology companies. Governor's Office of Economic Development, announced plans Thursday to help support Hexcel's plans to expand its existing Utah operation in several increments over the next decade, resulting in a potential of up to a 100 percent increase in its West Valley City workforce.
"I am very pleased Hexcel has chosen to undertake this major expansion of its already considerable presence in our state," said Gov. Gary R. Herbert. "This expansion is a testament to Utah's position on the leading edge of the advanced composites industry, and it will be a major boost to our efforts to accelerate private sector job creation."
Hexcel has advanced composite facilities around the world and is one of the country's largest producers of carbon fiber and carbon fiber prepregs. The company's current facility in West Valley City is one of its largest US operations.
Company representative, Gene Barton, said, "We are proud to have been at the heart of Utah's Composites industry since its beginning. We look forward to continued growth at our facilities in West Valley City and appreciate the support of the community as we move into the next phases of our industry's expansion."
Advanced composite materials are currently a big focus in Utah's aerospace and defense sector. Carbon fiber and similar materials are used in products ranging from lightweight, high-impact body armor and rockets to high-end sports cars and recreational products. As an example of Utah's critical mass of companies working in the industry, Hexcel products are the first step in a local supply chain that ultimately produces structures for large and small commercial airplanes, as well as key space and defense programs like the V-22, the F-35 and the C-17.
"Because of companies like Hexcel choosing to expand and relocate in Utah, the next decade will be a time of great excitement in the State's aerospace and defense cluster," said Spencer Eccles, executive director of GOED. "We have seen a lot of diversity in the types of companies coming to and expanding in Utah, as well as in the products they create. I expect that we will see that diversity bear considerable fruit in the next several years."
"Utah's strength in the composite engineering cluster has resulted in industry leading, world-class companies choosing our state over competitive global cities in Europe and Asia," said Jeff Edwards, president & CEO of the Economic Development Corporation of Utah (EDCUtah), who has worked with Hexcel to facilitate several expansions over the last 20 years.
The GOED board of directors approved a one-time, post-performance EDTIF refundable tax credit of $7,767,961 over the 10-year life of the project. Hexcel Corporation expects to hire as many as 600 new employees during that time, with wages above 125 percent of the Salt Lake County average salary including benefits. Hexcel plans to make significant capital investments for the expansion over the life of the incentive and the State is expected to gain as much as $30 million in new state revenue.