Fort Worth, Texas – The Fort Worth City Council is poised to deliberate on a proposed tax abatement, a pivotal move that could culminate in Siemens AG, a leading German multinational corporation, inaugurating a $133 million manufacturing plant in the city, potentially generating 715 jobs. This report comes shortly after Dallas-based leader in the natural gas industry, Energy Transfer, announced a $7.1 billion merger with Houston’s Crestwood Equity Partners additionally supporting the business operations in the Dallas – Fort Worth area.
Siemens wants to invest $133 million in manufacturing plant in Fort Worth and provide more than 700 jobs
Siemens AG, which boasted an impressive $79.3 billion in revenue in 2022, has unveiled plans to construct a state-of-the-art manufacturing facility at 7200 Harris Legacy Drive, situated within Carter Park East. The facility is earmarked for the production of low-voltage switchgear and switchboards, critical components integral to the transmission of electricity.
Under the terms of the proposed tax abatement, the city of Fort Worth intends to offer a decade-long tax reduction, encompassing up to 70% of the incremental real and business personal property, an incentive that holds an estimated worth of $6 million. However, this tax relief is contingent on the stipulation that Siemens must fulfill the minimum average annual salary threshold of $63,000. Failure to meet this requirement would result in a forfeiture of the annual abatement.
Fort Worth expects $2.6 million in new tax revenue if the project moves forward
Should the proposal receive approval, it is projected that the undertaking would yield a net infusion of $2.6 million in new tax revenue for Fort Worth. As for the manufacturing plant, Siemens has outlined a capital investment agenda of $133 million, with $70 million earmarked for real property improvements to be completed by the end of 2024, and the remaining $63 million allocated for business personal property by January 2025.
The company’s blueprint for employment growth entails an initial commitment to hiring 167 full-time employees by the close of 2024, with plans to escalate to a total of 715 jobs by the culmination of 2026. Moreover, the average annual remuneration for these positions is projected to exceed $63,000. Further enhancing the project’s community impact, Siemens has pledged that 15% of the hard and soft construction expenditures will be allocated to minority- and women-owned businesses. In the event of non-compliance with this requirement, the grant will be diminished by 10%, as stipulated by the city.
An analysis conducted by city staff has indicated that the financial incentive extended to Siemens would likely be recouped within approximately 6.5 years.
Robert Sturns, the city’s economic development director, conveyed to the council during the Aug. 15 work session that Siemens has been diligently engaged in a meticulous site selection process over the past several months.
“This will be the first step in ensuring that Fort Worth is a selected site, but we still have a couple of other approvals that we would have to work through with them as part of the process,” he said.
Siemens Industry Inc., a prominent subsidiary of Siemens AG, is recognized for its robust offerings encompassing products, systems, and services tailored to the demands of industrial automation, drives, motors, and other vital energy management systems. The corporation already boasts a significant manufacturing footprint in Grand Prairie, where it is engaged in the production of low-voltage circuit breakers.
Siemens is highly active in the North Texas area, currently employing nearly 1,800 individuals
In a notable demonstration of its commitment to the region, Siemens invested a substantial sum of $10 million in 2022 for the purpose of expanding its Grand Prairie plant.
According to information readily available on the company’s website, Siemens currently employs nearly 1,800 individuals within the North Texas area. In the region, the company operates nine facilities, a roster that includes the aforementioned Grand Prairie manufacturing hub, as well as its Plano-based global headquarters for Digital Industries Software. In a recent announcement made in June, Siemens unveiled its plans to invest an impressive $2.17 billion, primarily targeting an augmentation of manufacturing capacity across key geographical regions, including Germany, the U.S., and Asia.
A city report on the Siemens plant reveals that the global demand for low-voltage switchgear has experienced a marked surge. This development has been driven by several contributing factors, including increased construction activities, expansion of manufacturing operations, and the burgeoning growth of sustainable energy.
The Fort Worth City Council has scheduled a public hearing for Sept. 12, during which it will contemplate the establishment of an incentive reinvestment zone. Subsequent to the hearing, the council is expected to cast their votes on the proposal.