Stryker, a worldwide medical technology company, will grow its Utah operations by 540 jobs in Salt Lake City over the next decade.
The company announced the expansion last week after being approved for a nearly $3.4 million tax credit incentive by the Governor’s Office of Economic Development (GOED) board.
Founded in 1941 and based in Kalamazoo, Michigan, the company offers products and services in orthopaedics, medical and surgical, and neurotechnology and spine. It offers products in more than 100 nations, has 43 manufacturing and research and development locations worldwide and has about 33,000 employees. Stryker had $11.3 billion in sales in 2016. In the fiscal second quarter ended July 27, the company reported net income of $391 million, or $1.03 per share, on net sales of $3 billion.
The company’s current Utah operations, acquired when Skyker obtained Boston Scientific in 2011, manufacture neurovascular products, and the $100 million expansion will increase the product portfolio to include orthopedic, spinal and endoscopy product manufacturing. It also will increase research and development operations, employing many engineers, and will host a medical device physician training and certification program.
“Our goal is to sink deep roots across a wide spectrum of the community,” Mark Paul, president of Stryker’s neurovascular division, told the board. “We want to be here for a long time.”
Paul said Salt Lake City offers a university medical school, a Delta Air Lines hub, low costs and “phenomenal” employees. “All of the ingredients are here for a fantastic industry in the medical device world,” he said, adding that he wanted to declare Salt Lake City as “Med Tech Valley.”
The company had considered several locations in the West for the project, including Texas and Arizona.
“We congratulate Stryker on having the wisdom to see the opportunities that exist here in Utah,” Gov. Gary Herbert told the crowd at the board meeting. “We’re going to grow together.”
The project is expected to result in $192.2 million in wages over 10 years and nearly $17 million in new state tax revenue during that time. The tax incentive is post-performance, meaning the company will get a portion of the rebate annually as it creates the high-paying jobs. The $3.4 million figure represents 20 percent of the new state taxes that the project will generate over 10 years.
“World-class companies like Stryker elevate Utah’s life science industry in the global market,” Val Hale, executive director of GOED, said in a prepared statement. “We are grateful for Stryker’s continued investment in the community and look forward to the many economic opportunities it will provide.”
“Stryker has cemented itself as a leader in global innovation and medical device manufacturing,” said Theresa Foxley, president and chief executive officer of the Economic Development Corporation of Utah. “With their continued expansion in Utah, Stryker adds to an already recognized and established life sciences and medical device manufacturing hub.”