A rail-car manufacturer is picking up some economic steam for a huge plant expansion in Salt Lake City.
Stadler US Inc., which has its North American hub in the Northwest Quadrant, will double its production capacity and grow from its current 500-employee headcount.
The announcement came after the company was approved for a tax credit incentive of up to about $2 million over 15 years by the Governor’s Office of Economic Opportunity board at its September meeting.
The incentive is tied to the creation of 65 high-paying jobs over 15 years, “but obviously there are many others that will be added that will also add to the community as well,” Chris Conradi, chief financial officer of Stadler US, told the board.
“What that means is our end job capacity will be over a thousand once this is complete,” Conradi said. “We don’t anticipate getting there tomorrow, but over time, over the next several years, we anticipate growing steadily and achieving that number long down the road.”
The project also is expected to feature capital spending of nearly $189.5 million by the company.
“Since we opened our Salt Lake City facility in 2019, we’ve secured critical contracts, created hundreds of high-skilled jobs, and firmly established Utah as a center of excellence in rail manufacturing,” Martin Ritter, CEO of Stadler North America, said in a prepared statement. “Thanks to the support of the Utah Governor’s Office of Economic Opportunity, we are expanding our plant to boost production capacity and further invest in the training and expertise of our local workforce — strengthening both Stadler’s U.S. operations and the economic future of Utah.”
Stadler US is part of Swiss-based Stadler, which has more than 15,200 employees worldwide at eight production and six engineering locations as well as over 80 service locations. Stadler is the world’s leading manufacturer of rack-and-pinion railway vehicles. The Salt Lake City U.S. headquarters and primary U.S. manufacturing facility builds a range of rail vehicles for the North American market, including light rail, metro, diesel-electric, and hydrogen- and battery-powered trains.
Stadler chose Utah for a temporary U.S. base in 2015 while it decided on a permanent location. At the time, it was approved for a pair of state incentives for the project, tied to the creation of up to 1,000 jobs over 15 years. It rented a facility starting in 2016 and opened the state-of-the-art manufacturing plant in Salt Lake City in 2019.
Conradi said the coming expansion will allow the company to bring in welding operations that have been happening overseas. The project also involves expanding assembly halls, office space and project management jobs. The expansion is expected to be finished by mid-2026.
“With that, we’re taking off,” he said. “We hope that the sky’s the limit here and we continue to grow in the state and sell more of our product nationwide.”
“Stadler is an amazing partner to Salt Lake City and the state, and we’re so excited about their continued expansion in our city, providing really high-quality manufacturing jobs to our residents,” Peter Makowski, deputy director of business development for Salt Lake City, told the GOEO board.
The expansion is expected to generate new state tax revenue of over $8 million over 15 years. New total wages for the incentivized jobs are projected at over $93.8 million during that time, with the new jobs paying an average wage of $113,774.
“Railway manufacturing drives high-quality job creation, strengthens Utah’s advanced manufacturing sector, and positions the state as a hub for innovation and next-generation transportation,” Jefferson Moss, GOEO’s executive director, said in a prepared statement. “Stadler’s growth highlights how global companies are drawn to Utah’s pro-business environment and innovative spirit. Investments like this create lasting value — for our economy and for Utahns through skilled careers and stronger communities.”
“Stadler Rail is laying tracks for innovation right here in Salt Lake City, where they are building electric and hydrogen rail systems that ship across the country,” said Ryan Starks, executive director of the Economic Development Corporation of Utah. “Its products and commitment to workforce training are moving the rail industry full steam ahead, and Utah’s advanced manufacturing industry continues to be a catalyst for innovation and growth.”
Colin Gibbs, director of business development for the Salt Lake City Department of Economic Development, said the expansion “is a clear example of human-centered economic development in action — innovation that leads to good jobs and sustainable growth for Salt Lakers. This project strengthens our local workforce and ensures opportunity is created here at home. Salt Lake City is proud to support investments that double down on our people while fueling the next chapter of economic growth.”
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.
Earlier this year, the Utah Inland Port Authority awarded the company a tax incentive for the pending expansion, in the form of an annual property tax differential rebate equivalent to 10 percent of the assessed property tax, after completion of the development. The rebate will be provided yearly for up to 25 years, provided continued operation within the Northwest Quadrant during that time.