560 JOBS AND $34.8 MILLION CAPITAL OUTLAY
Brice Wallace
A heart valve manufacturer has had a successful run at its Draper operations the past 15 years and wants to “keep the party going” with a large expansion.
Edwards Lifesciences Corp., based in Irvine, California, plans to spend $34.8 million and add 560 jobs over the next 15 years at the Draper manufacturing site. The announcement followed the Utah Governor’s Office of Economic Opportunity board approving a tax credit incentive of up to $8 million over 15 years for the project.
Edwards is a global company focused on innovations for structural heart disease and care monitoring during surgery or in intensive care.
Prior to the incentive vote, Justin Nelson, finance director at the Draper facility, noted that the company surpassed the job-creation levels promised by the company in 2009 when it was awarded an incentive of up to $11.5 million tied to the retention of 228 jobs and the creation of more than 1,000 jobs over 15 years.
“We’ve exceeded that thousand,” he told the GOEO board.
“It’s been a great opportunity to kind of move a great medical technology company to Utah with those thousand jobs, and now we’re set to go to Phase 2 and do a little bit more vertical integration,” he said. “So, we’re excited to have another project on the board that will, in essence, keep the party going, so to speak, and we’re excited to come back and say, ‘Hey, look, it’s been a great, successful run for us and now we’re looking for the next 15 years.’”
The expanded manufacturing operations will include a new facility that will specialize in manufacturing technically advanced components used in Edwards’ structural heart technologies. The new 76,000-square-foot facility adjacent to the existing plant is scheduled to be operational by the end of 2026.
“Edwards continues to focus on delivering structural heart innovations to patients fighting heart valve disease,” Joe Nuzzolese, Edwards' corporate vice president for global supply chain and quality, said in a company news release. “The expansion of our manufacturing operations with this new state-of-the-art production facility in Draper will increase the resiliency and sustainability of our global supply chain and advance our capability to help even more patients around the world.”
During the GOEO board meeting, Ryan Moehle, who leads the company’s metal engineering group, noted that company’s heart implants have a type of metal “skeleton” that have been produced in Draper for the past 10 years. The company four years ago undertook a “deep dive” in the technology’s platform with an investment in the Draper operations.
“We really want our Draper facility to become a technology incubator for growth across the globe,” Moehle said. “Edwards is a global company. We have manufacturing facilities and offices pretty much on every continent, and what we’re really trying to do is make sure that we can support as many patients as we can with this life-saving therapy.”
Over the past decade, the Draper facility has produced 1 million implant components, he said.
“These are technologies that are truly life-saving, where you go from a situation where patients are short of breath and they’re having a hard time keeping up with their grandkids, and, all of the sudden, literally the next day, they have a different quality of life and they’re able to, in most situations, return to their normal activities,” Moehle said.
The expansion will allow the company to improve both quality and supply chain elements, he said. It currently works with a German company for one of its products but supply chain disruptions caused by the COVID pandemic prompted the company to “internalize the capability so we can ultimately control our destiny,” he said.
“It’s been a 10-year journey so far out of our Draper facility, and we’re looking forward to the next several years as we’re able to expand,” he said.
David Dobbins, Draper city manager, said Edwards has been “a great success” for both Draper and the entire state. “This is the type of company and the type of jobs and products that we can all be proud of, so we fully support this,” he told the GOEO board.
The expansion project is expected to generate new wages of $575 million over 15 years and new state tax revenues of nearly $32.4 million during that time. The new jobs will pay an average of $113,303.
“We’re thrilled to announce that Edwards Lifesciences, a leader in medical technologies, has selected Utah to expand its operations,” Gov. Spencer Cox said in a prepared statement. “Utah is home to a robust healthcare sector with renowned hospitals and research institutions, a highly skilled and educated workforce, and a supportive business environment. Edwards Lifesciences is a natural fit in Utah, and we look forward to seeing the medical advancements made possible through this expansion.”
“Utah’s life science sector is thriving, boasting the nation’s leading job growth in the industry,” said Ryan Starks, GOEO’s executive director. “The expansion of Edwards Lifesciences within the state will further enhance this trajectory, and we extend our best wishes to its success.”
“Thanks to companies like Edwards Lifesciences, Utah’s workforce is primed with science and engineering expertise that drives innovation,” said Scott Cuthbertson, president and CEO of the Economic Development Corporation of Utah. “For many years, Edwards Lifesciences has played a pivotal role in advancing Utah’s life science industry, and we welcome its continued growth in our state.”
GOEO does not provide upfront cash incentives. Each year that an incentivized company meets the obligations in its contract with the state, it will qualify to receive a portion of the new, additional state taxes the company paid to the state.