A longtime manufacturing stalwart in Utah will expand in the state, putting its Center of Excellence for Research & Technology (R&T) in West Valley City.
Hexcel Corp.’s project will add up to 150 high-paying jobs over the next dozen years. The company made the announcement after being approved for a tax credit and an infrastructure grant by the Governor’s Office of Economic Development (GOED) board.
The Connecticut-based company already has nearly 600 workers in West Valley City producing advanced composite materials, specifically carbon fiber, prepregs and resins that support commercial aerospace, space and defense and industrial customers. It is the company’s largest carbon fiber and aerospace matrix manufacturing plant.
Jim Wojciehowski, leading the project at the company, noted that the company supplies materials used on the Airbus A350, a competitor of the Boeing 787 aircraft.
“We’re moving our R&T center to this location for the purpose of accelerating that collaboration between production and research so that we can develop the next generation of materials,” he told the GOED board.
“The big opportunity for both Hexcel and for Utah is building this center and having our next-generation materials positioned for the next generation of aircraft. We anticipate when Boeing and Airbus build their next family of aircraft at the end of this decade, they’re going to made exclusively out of composite materials, which has the ability to significantly grow the company. So we’re excited to be incubating this technology at this new research center and have the opportunity to showcase our technologies to our customers and to do collaboration with them in developing and qualifying the next generation of materials.”
This is not the first time for Hexcel to be awarded a state incentive. About a decade ago, it received a tax credit of about $7.77 million over 10 years to add 600 jobs in West Valley City.
Ben Hart, GOED deputy director, said the company has been involved in workforce development programs and other activities over the years. “They’ve been an excellent corporate citizen,” he told the board.
“This represents the future of aerospace,” he said of the expansion. “Having Hexcel expanding in the state of Utah is a critical advantage. This announcement today — mark my words — will be one that we look back on 20 years from now and realize it’s a significant project for the state and a significant investment.”
Daniel Royal, GOED’s director of corporate growth and business development, said the expansion project has been in the works for about three years. “We’re glad we’re finally able to wrap it up and get this going and get this done,” he said.
Workers at the $25 million expansion are projected to have annual pay averaging $134,866. The facility will house laboratories and offices for chemists, material scientists, engineers and business team members to collaborate with customers and suppliers.
The state incentives are in the form of a tax credit of about $1.53 million over 12 years, and an Industrial Assistance Account Economic Opportunity Grant of $200,000 to help the company with infrastructure costs, including better access to the area.
The project is expected to generate nearly $147 million in total wages over 12 years, and nearly $7 million in new state tax revenue during that time.
“We’re grateful for the support that Utah continues to provide to Hexcel, and we’re excited to announce this investment in innovation today to ensure our continued leadership tomorrow,” Nick Stanage, Hexcel chairman, CEO and president, said in a prepared statement.
“This new site will provide much-needed room to expand our research, to broaden our portfolio, and to offer our customers an enhanced opportunity to collaborate with us on the latest composite technology developments for aerospace, space and defense, and industrial applications.”
“We welcome Hexcel as it expands in Utah,” said Dan Hemmert, GOED’s executive director. “Their decision to grow here will create many high-paying jobs for Utahns in skilled science and advanced technology. Hexcel also has an excellent training program that will serve to develop Utah’s workforce further and help its employees develop the skills they need to succeed.”
Theresa A. Foxley, president and CEO of the Economic Development Corporation of Utah, said the company “has been a long-time contributor to West Valley City’s economy and a reason why Utah is regarded as a marquee location for advanced manufacturing and composites. We’re thrilled with the company’s continued investment in our state.”
Hexcel has been “an important part of the West Valley City business family for many years,” according to Jeff Jackson, director of Business Development for the RDA and Economic Development Division for West Valley City.
“This expansion represents a long-term commitment by Hexcel, which includes great employment opportunities as well as joint long-term economic outcomes,” Jackson said. “We look forward to our ongoing partnership.”
Hexcel was founded in 1948 and has 4,800 employees, according to the company website. It had 2020 sales of $1.5 billion. Materials produced at its 23 manufacturing sites include lightweight but strong carbon fiber used for bicycles, wind turbines and other industrial applications; and for both commercial and defense aircraft, including F-35s and helicopter blades.