Ottobock Healthcare, a medical
technology company, will relocate several divisions and expand its existing manufacturing and R&D centers in Salt Lake City, Utah
. Headquartered in Duderstadt, Germany, the prosthetic device manufacturer offers a diverse portfolio of products and services, including mobility and seating systems, custom orthotics and orthopedic devices.
“The functions that will relocate and merge with current operations in Salt Lake City, Utah, will take advantage of our existing infrastructure and build synergies within manufacturing to better support evolving policy and procedure compliance,” said Andreas Schultz, President and CFO Ottobock North America.
“The international reach of Ottobock HealthCare strengthens and diversifies Utah’s life sciences and composites sectors,” said Spencer Eccles, Executive Director, Utah Governor’s Office of Economic Development
. “Utah is a destination for global business expanding in the U.S. With this expansion, the company will find our multilingual and productive Utah employees unrivaled by any other workforce around the world.”
Ottobock HealthCare’s expects to add more than 80 new jobs in the coming years, 55 of which will be contracted with the state to pay a minimum of 125 percent of Salt Lake County’s average wage including benefits.
“With the addition of Ottobock to Utah’s life sciences cluster, we see the industry continue to mature in the state,” said Jeff Edwards, President and CEO of the Economic Development Corporation of Utah
. “It is important to companies like Ottobock that Utah has a well-established cluster where deep and mature talent pools increase their efficiency.”
Throughout the seven-year life of the agreement with the state, the company will pay out $16,219,299 in new state wages. Utah’s economy will also benefit from $1,960,095 in new state tax revenues and $1,000,000 in capital expansion investment.
As part of a contract with Ottobock, the GOED Board of Directors has approved a maximum cap tax credit of $392,019 in the form of a post-performance Economic Development Tax Increment Finance incentive
, which is 20 percent of the net taxes Ottobock will pay over the seven-year life of the agreement. Each year as Ottobock meets the criteria in its contract with the state, it will earn a portion of the tax credit incentive.