A South Korean-based company specializing in pipes and fittings for water and plumbing systems will expand in Cedar City, with plans to add 50 high-paying jobs in a $52.2 million project over five years.
PPI America Inc. is part of PPI Pipe Co. Ltd., a company in South Korea’s polyvinyl chloride (PVC) piping industry that was founded in 1976. PPI America was established in 2013.
“During our evaluation of expanding our presence in the U.S., when looking at Utah and Cedar City specifically, we were extremely impressed with the rapid development of Iron County and its logistical advantages,” Agnes HyeJung Lee, president of PPI America Inc., said in a prepared statement.
Marcus Min, senior director of U.S. operations, told the Governor’s Office of Economic Opportunity board, at its September meeting, that Cedar City is a strategic location. He said Cedar City reminds him of the company’s headquarters in South Korea as “a manufacturing area and a great town surrounding it.”
Min said only one person will move from South Korea to work at the plant and will be there for five years. All other hires will be people from the Cedar City area.
“Our goal is to promote, encourage and grow within Cedar City and hopefully in some other cities in other states eventually,” he said.
David Johnson, economic development director for Cedar City and Iron County, said PPI will be using a building formerly used by Mueller Industries, a producer of copper and copper alloy products.
“They (PPI) will be revitalizing a significant industrial facility here in Cedar City and Iron County,” he said. “What they will bring to our community is fantastic, and with our position with the major western markets and rail and other things, we are excited to have them and they’ll be a great support to us.”
The GOEO board approved a tax credit incentive for the project of up to $992,254 over five years. The project is expected to result in new state tax revenue of $3.3 million during that time. New wages are expected to total nearly $13.3 million, based on an average wage of $100,361.
“Clean, reliable water is vital to Utah’s future,” Jefferson Moss, GOEO executive director, said in a prepared statement. “PPI America Inc. delivers safe drinking water while driving innovation, strengthening communities, and helping Utah attract new businesses.”
In a prepared statement, Johnson noted Cedar City’s ties to South Korea and welcomed PPI to the community. “Its decision to invest in Cedar City with a new production facility not only strengthens Utah’s economy but also reinforces our reputation as a place where international companies thrive,” he said. “We look forward to the success of PPI America Inc. in Cedar City and welcome it to Southern Utah.”
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.