UT: EP Systems Selects Cache County for $11.6M, 128-New-Job Mfg Site
15 May, 2017
Electronic Power (EP) Systems and the Governor’s Office of Economic Development (GOED) announced the aerospace battery manufacturing company will expand to Utah, adding up to 128 jobs to the community and $11.6 million in capital investment.
“EP Systems’ innovative technology is a natural fit for Utah’s aerospace industry,” said Val Hale, executive director of GOED. “Northern Utah has positioned itself as a global leader in aerospace, and EP Systems will thrive as a member of our world-class industrial and research community.”
EP Systems traces its roots to Los Angeles-based Phillips Machine & Weld. Beginning as a manufacturer and supplier of machined parts to aerospace companies such as Boeing and Northrop Grumman, the company ventured into energy storage systems for electronic vehicles. EP Systems’ product integrates key technologies such as lithium-ion batteries, converters, controllers, software and mechanical packaging for major industrial and aerospace markets. Its technology aims to address issues such as energy independence, carbon emissions and global security.
“We are happy to announce our expansion plans into the state of Utah,” said Nathan Millecam, CEO of Electric Power Systems. “We are excited to tap into the state’s industrious, innovative workforce, and build a world class Energy Storage System product line that makes the world safer, cleaner, and more mobile. We’d like to thank GOED and Logan City for their work in bringing us here, and look forward to joining and contributing to these wonderful communities.”
The EP Systems project will create up to 128 jobs over the next seven years. The total wages in aggregate are required to exceed 110 percent of the Cache County average wage. The projected new state wages over the life of the agreement are expected to be approximately $38,869,950. Projected new state tax revenues, as a result of corporate, payroll and sales taxes, are estimated to be $8,373,904 over seven years.
“We are excited to see EPS’s decision to relocate to Cache County,” said Theresa Foxley, president and CEO of the Economic Development Corporation of Utah. “This project is a great example of Team Utah’s collaborative approach to winning projects. We appreciate our partnership with GOED, USTAR, Utah State University and community leaders and their hard work to make this project a reality.”
EP Systems may earn up to 20 percent of the new state taxes they will pay over the seven-year life of the agreement in the form of a post-performance Economic Development Tax Increment Finance (EDTIF) tax credit rebate. As part of the contract with EP Systems, the GOED Board of Directors has approved a post-performance tax credit rebate not to exceed $1,674,781. Each year as EP Systems meets the criteria in its contract with the state, it will earn a portion of the total tax credit rebate.
“EP Systems will be a wonderful addition to the very diverse group of technology businesses that we have in Logan and Cache County,” said Logan City Mayor H. Craig Peterson. “We’re excited to witness EP Systems growth, as well as its continued, mutually-beneficial collaboration with Utah State University. We’re pleased with the influx of new jobs, but particularly the significant addition of engineering positions this project brings and what that means in terms of new opportunities for our university graduates, as well as those seeking to make their way back to Logan.”
About the Utah Governor’s Office of Economic Development (GOED)
The Governor’s Office of Economic Development (GOED) charter is based on Gov. Gary R. Herbert’s commitment to statewide economic development. The state’s economic vision is that Utah will lead the nation as the best performing economy and be recognized as a premier global business environment and tourist destination. GOED provides extensive resources and support for business creation, growth and recruitment statewide, as well as programs to increase tourism and film production for the benefit of Utah residents. All administered programs are based upon strategic industry clusters to develop a diverse, sustainable economy. GOED accomplishes its mission through unprecedented partnerships. For more information please contact: Aimee Edwards, (801) 538-8811 or email@example.com.