One of the largest manufacturers and distributors of food packaging and foodservice products in the world, Pactiv plans an approximately $52 million capital investment to establish a new manufacturing and distribution facility in Salt Lake County, Utah
Property improvements and personal property equipment for manufacturing and warehouse activities will make up the bulk of its investment, state economic development officials said. 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. In addition to economic dollars being brought to the state, the project will bring 60 new jobs to Utah.
“The expansion project is highly competitive with other states and we are pleased to select Utah,” said Pactiv President/CEO, John McGrath. “Utah is a great place to do business for our company and we thank the State for its support.”
“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, Utah Governor’s Office of Economic Development 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 a world-class company and this is a great win for Utah,” said Jeff Edwards, President/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.”
The GOED approved a tax incentive to assist the firm with its 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 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.