Stryker Corp. produces neurovascular products at its Salt Lake City facility. The company has been approved for a state tax credit incentive for an expansion project expected to add 862 high-paying jobs. (Photo courtesy Stryker Corp.
Employees work at Stryker Corp.’s advanced manufacturing facility in Salt Lake City, where the company produces neurovascular products. The company has been approved for a state tax credit incentive for an expansion project expected to add 862 high-paying jobs. (Photo courtesy Stryker Corp.)
A Michigan-based medical technology manufacturer will expand in Salt Lake County, with plans to invest $615.6 million and add 862 new high-paying jobs over the next two decades.
Stryker Corp., which has had a Utah presence for nearly 25 years and produces neurovascular products in the state, made the announcement after being approved for a state tax credit incentive by the Governor’s Office of Economic Opportunity board.
“By expanding our presence in Utah, we’re supporting the creation of more jobs and driving innovation that improves patient outcomes in the U.S. and around the world,” Jim Marucci, president of Stryker’s neurovascular division, said in a prepared statement. “We’re pleased to continue our partnership with the Utah Governor’s Office of Economic Opportunity, which has been instrumental in supporting our growth and impact here.”
Stryker develops, manufactures and markets a range of products for the medical, surgical, orthopaedic, and neurotechnology and spine sectors. Founded in 1941 by Dr. Homer Stryker, the company focuses on improving patient and health care outcomes through innovative products and services, with a portfolio that includes implants, surgical equipment, medical and surgical instruments, and patient handling equipment.
Stryker has 53,000 employees in operations across 75 countries. It says its products impact more than 150 million patients annually.
The company’s Salt Lake City location houses advanced manufacturing, a state-of-the-art surgeon training center, and a hands-on bioskills lab. It is also home to many of the company’s neurovascular team members, who are advancing stroke therapy devices in collaboration with health care professionals to improve patient outcomes.
“Basically, the products we’re making here every day, every minute, are saving people’s lives,” Susan Zhang, Stryker’s director of manufacturing, told the GOEO board.
She said the incentive will help the company improve its operations, remain competitive, advance its acquisitions and consolidations, and allow the company to continue bringing new technologies into the Salt Lake City site. “Every month, every quarter, every year, we’re making changes,” Zhang said.
The tax credit approved by the GOEO board is for up to $13.8 million over two decades. The project is expected to generate new wages of over $1.34 billion over 20 years, with average pay of $126,557. New state tax revenue is estimated to be over $55.2 million during that time.
Lance Soffe, GOEO’s director of industry partnerships, called Stryker “a stalwart” and “an anchor employer here in the life sciences community.” The expansion project represents “amazing capex (capital expenditure), lots of jobs and great wages, so the trifecta there,” he said.
After the incentive vote, Carine Clark, chair of the GOEO board, said she was happy that the company received unanimous support from the board. “Thank you for your contributions to our state. … You probably saved a number of people’s lives in my community, so thank you for them,” she told company representatives.
“Life sciences are a critical engine for Utah’s economy and the health of our communities,” Jefferson Moss, GOEO executive director, said in a prepared statement. “Stryker’s expansion reflects the depth of talent in our state and the strength of an industry that creates high-paying jobs while advancing technologies that improve care for people across the world.”
“Stryker’s expansion is a win for Salt Lake City families and our local economy,” said Lorena Riffo-Jenson, director of Salt Lake City’s Department of Economic Development. “These new jobs will provide meaningful opportunities for residents while reinforcing our city’s role as a hub for life-saving innovation. We’re proud to support growth that strengthens our communities and improves lives right here at home and around the world.”
The state incentive is the second for the company in recent years. In 2017, Stryker was approved for a tax credit incentive of up to nearly $3.4 million, tied to the creation of 540 jobs in Salt Lake City in a $100 million expansion over 10 years. Stryker acquired the Utah operations when it obtained Boston Scientific in 2011.
GOEO does not provide upfront cash incentives. Each year that an incentivized company meets the obligations in its contract with GOEO, it will qualify to receive a portion of the new, additional state taxes the company paid to the state.