By Brice Wallace
A high-tech manufacturer and a French company that produces navigation systems will both expand their operations in Utah, creating a total of 129 jobs over the next few years.
Ezarc Solutions Inc. will grow by 75 jobs over five years at its headquarters city of Pleasant Grove, while Thales USA will add 54 jobs over the next decade in Salt Lake City. Both companies were recently approved for tax incentives related to their projects by the Governor’s Office of Economic Opportunity (Go Utah) board.
Ezarc was established 31 years ago in Pleasant Grove.
“Not a real household name in Utah, but very well-known throughout the semiconductor and high-tech manufacturing world. … We are at the very forefront of innovation as it relates to how we put components and structures together for these new builds and for the rebuilds,” Steve Bowers, president and chief operating officer, told the board.
Ezarc’s specialty is providing innovative solutions to the manufacturing and construction industries within the semiconductor, data center and advanced manufacturing sectors, with engineers and designers creating new and revolutionary ways to manufacture parts and components needed in the support of clients’ operations. Those include structural steel, miscellaneous metals, custom metal fabrications, rigging, and tool and equipment installations, including new-build, renovation and clean environments.
Ezarc’s customers include Intel, Samsung, Micron, Texas Instruments and TSMC, Bowers said.
“Obviously, as these campuses are being built — and these are multibillion-dollar campuses — there is a lot of pressure to move our manufacturing capabilities closer,” he said. “We have done the studies and really like where we’re at here in Pleasant Grove. It’s geographically beneficial to us.”
The Go Utah board approved a tax credit incentive of up to $626,876 over five years for the $4.5 million project. New wages over five years are estimated at about $14.6 million and new state tax revenues are projected to be nearly $4.2 million during that time. The average pay of the new jobs will be about $65,000.
“I think we’ve gone in very conservatively in our growth,” Bowers said. “We wanted to make sure that we didn’t overpromise and underdeliver, but we have high expectations in our growth for the future in this industry. …”
“We congratulate Ezarc on its decision to expand its fabrication and manufacturing capabilities in Utah,” Ryan Starks, Go Utah’s executive director, said in a prepared statement. “With the strong presence of the semiconductor and advanced manufacturing industries in the western U.S., Ezarc is uniquely positioned geographically to address the market needs in Utah and beyond.”
“We’re pleased to see another local company choose to reinvest in Utah,” said Scott Cuthbertson, president and CEO of the Economic Development Corporation of Utah. “Semiconductor manufacturing is a priority industry for Utah and the United States, and we look forward to growing our state’s capacity for this critical supply chain.”
France-based Thales is focused on in advanced technologies within three domains: defense and security, aeronautics and space, and digital identity and security. It has 85,000 employees in 68 countries. Thales Airspace Mobility Solutions is a business line within the Thales Group and is the global market leader in air traffic management solutions and services. Its customers manage more than 40 percent of the world’s airspace with its array of navigation, surveillance and automation solutions.
Among Thales’ customers are the U.S. Department of Defense, the Federal Aviation Administration and the Canada Department of National Defence.
Thales has about 4,300 employees in 22 U.S. states. Thales acquired Moog’s Navigation Systems business in Salt Lake City in December 2021. Its navigation aids are used by the military and airports, among others. It even has “man-portable” technology used to aid navigation in war zones or other areas of conflict.
“This facility and this business has a product portfolio and a customer set which is really about precision navigation aids largely targeted towards military customers,” Todd Donovan, Thales’ vice president of airspace mobility solutions in the Americas, told the Go Utah board.
“We’ve seen a substantial uptick in business as a result of modernization of technology by our customers but also the conflicts in the world and some of the geopolitical things that are happening in the world.”
After the Moog business acquisition, “we concluded that it (Utah) is a good environment for us. We like the workforce; the people like the area,” he said. “And we’re excited about the opportunities to reinforce a longstanding presence that this business has had in Utah and specifically in Salt Lake City, where it was founded 70 years ago.”
“We’re very grateful for the anchor that you have been here in Utah and what you continue to do for this community,” replied Jesse Turley, chairman of the Go Utah board’s incentives committee and acting Go Utah board chairman during the September meeting.
Roberta Reichgelt, director of business development for Salt Lake City, spoke in support of the expansion.
“The advanced manufacturing space focused on aerospace and defense is a key industry for us in Salt Lake City, and with high-paying jobs in this company specifically that are beneficial to our residents is a great thing, and we’re excited to see them grow.”
The Go Utah board approved a tax credit incentive of up to $1.83 million over 10 years for Thales. The company expansion represents a $21 million company investment that will include moving to a new, larger facility. The new jobs are expected to pay a total of about $60.7 million over 10 years and generate about $7.3 million in new state tax revenue during that time. The new jobs are expected to pay an average of more than $130,000.
“Thales is globally renowned in its sphere of specialty navigation systems and is an asset to Utah’s dynamic aerospace and defense community,” Starks said. “The company has proved its expertise working with the U.S. Department of Defense and other agencies, broadening our state’s connection worldwide. We’re grateful for Thales’ commitment to Utah’s economy and look forward to continuing our working relationship.”
“Thales’ reinvestment and expansion in Utah continues to add depth and expertise to our thriving aerospace and defense industry,” Cuthbertson said. “We welcome its commitment to growing in Salt Lake City and providing quality high-paying jobs at their new facility.”
“Because of our thriving talent pool, easy access to the beautiful outdoors, and booming commerce and culture scene, Salt Lake City continues to be the place where businesses want to land and expand,” said Salt Lake City Mayor Erin Mendenhall. “We are excited for the Thales expansion and for the good jobs it will bring. Not only is this a win for the aerospace and defense industry here in Utah, it’s also a win for Salt Lake City residents who will benefit from the jobs and positive economic impact.”
Go Utah 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.