KIMBERLY, WI (WTAQ) – Fox Cities officials are saying state aid to keep a Kimberly-Clark facility open was much needed and will carry massive economic impact for the area.
$28 million in state aid over five years is being sent to keep the companies Cold Spring facility open, which will retain 388 technical manufacturing jobs that equate to an annual payroll of over $30 million at the facility.
Peter Thillman, with the Fox Cities Regional Partnership, says the dollar figures tied to those jobs adds up quickly.
“The payroll that is impacted is staggering,” he explains.
Keeping the company open will also allow Kimberly-Clark to continue their support of businesses across the state, which supply around $56 million in goods and services to the facility annually.
The conversation and legislative battle over the companies future has lasted for nearly a year and Thillman says the stakes were big.
“This was a zero-sum game,” he explains. “Either Conway, Arkansas was going to get the facility expansion or the Fox Crossings facility was going to get the expansion.”
Governor Walker touched on the importance of keeping the company open.
“We have been working diligently over the last few months to ensure that Kimberly-Clark, a company with a long legacy in a key Wisconsin industry, will continue to have a strong presence in the Fox Valley. We are also pleased that Kimberly-Clark is making the commitment to continue to invest and grow in our state for years to come,” says Governor Scott Walker, who joined company officials Thursday in announcing the plans. “Keeping longstanding businesses in our state is just as important as attracting new ones. This agreement is a win for Wisconsin and the company, but more importantly for the employees at Kimberly-Clark and the many businesses and communities who rely on the company for their partnership and support.”
Thillman says the economic impact of the deal cannot be downplayed.
“With this [deal] they’re going to consolidate all their production of the non-woven product in one facility in North America,” he explains.
And while Thursday’s announcement was significant for the short-term, it also has much to do with the companies long-term status in the Fox Valley.
“Relocating all of your production facilities to one place and you don’t have a second location makes it a little bit more difficult to move it again,” he says.
Officials have stated that Kimberly-Clark, over the next five years, will continue to innovate and facilitate growth by investing up to $200 million in the Neenah Cold Spring Facility.
There are some stipulations in the deal, including that the company must retain 388 employees through 2023 and make at least $200 million in capital investment at the facility during that time span to earn the full amount of credits.
The company will have to provide supporting documentation and carry out the terms of the agreement before it can receive any tax credits, because the tax incentives are performance-based.
Only time will tell what the future holds for Kimberly-Clark, but for now, one thing is clear to local officials.
“In the Fox Cities, we had a pretty good day,” says Thillman.
