Stadler Rail to Open Manufacturing Facility in Utah

13340856785_863508ac41_zStalder Rail has announced plans to open a temporary manufacturing facility in Utah. This will be “phase one” of the company’s 15-year plan to expand its operations in North America. Stalder Rail is based out of Bussang, Switzerland, but in recent years it has pushed for a greater presence here in the United States. So, how will this will new manufacturing facility impact the state of Utah?

According to Stadler Rail, its new Utah facility will manufacture diesel multiple-unit vehicles for use with the Fort Worth Transportation Authority. It’s unclear how long this facility will stay open, although the company says it’s considering making the new Utah facility its permanent hub for North American manufacturing. Assuming it chooses to make the Utah facility its hub for North American manufacturing, it would create an estimated 1,000 new jobs over the next 15 years, while producing millions of dollars in state and federal revenue.

The new Utah manufacturing facility will exceed 110% of the county average wage, offering residents plenty of lucrative employment opportunities. Furthermore, the state wages throughout the duration of the contract are expected to exceed $576 million. This would create an estimated $40.3 million in state tax revenue over the course of 15 years, as well as $30 million in capital investments.

A press release issued by the company indicates that if it chooses Utah for the permanent location of its North American manufacturing business, it could earn up to 25% of the state taxes it will pay. This has been a proposed incentive by the Utah Governor’s Office of Economic Development (GOED), as well as incentive of up to $10.1 million. This includes both the EDTIF tax credit, as well as a grant of $500,000.

We are delighted that Utah is able to provide such a great location for the final assembly of our trains for the TEXRail order,” said Peter Spuhler, owner and CEO of Stadler Rail Group. “Conditions here are ideal, and we are confident that this represents important progress in our U.S. business. The two-phase plan enables us to manufacture trains for the TEXRail order under optimum conditions and, based on orders received, to extend and further expand our activities in the U.S.”

Of course, the U.S. manufacturing industry has struggled as of late, but if more companies like Stadler Rail open manufacturing facilities here in the states, it’s sure to have a positive impact on the industry and economy as a whole.

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