Oemeta, a German company that provides environmentally friendly metalworking fluids, announced plans to open their first U.S. manufacturing facility in Salt Lake County, Utah.
The company plans to invest $5.25 million to establish the high-tech manufacturing facility, and expects to create 58 new jobs over the next seven years.
These jobs will pay wages and medical benefits that will, in aggregate, exceed 125 percent of the county’s prevailing average wage. The new state wages over the seven-year period are projected to exceed $12.6 million.
Oemeta’s biobased technology is safer than traditional petrochemicals and other chemicals used as coolants and metalworking fluids in industrial machining. The company’s USDA certified biobased products are used by major automotive clients such as Audi and BMW.
Oemeta’s North American headquarters is in Ingersoll, Ontario, Canada, and their U.S. offices are based out of Fort Lee, NJ.
In order to secure the project for Salt Lake County and Utah, the Board of Directors of the Governor’s Office of Economic Development approved up to $113,447 in tax credits for Oemeta.
Every year, as the company fulfills its job creation commitments under the seven-year contract with the state, a portion of the tax credits allocated will be made available as an Economic Development Tax Increment Finance incentive.
The Oemeta facility is expected to generate $567,233 in new state taxes over the seven-year agreement period. The total amount in EDTIF incentives being provided is 20 percent of the tax revenue expected to be generated by the project.
Val Hale, executive director of GOED, said that Oemeta’s addition to Utah’s growing list of manufacturing companies hits home two major points – that Utah is actively recruiting foreign firms to invest in the state, and is increasingly aware of bringing environmentally friendly companies to the state.
Utah recently announced a $79 million environment-friendly greenhouse tomato farm project in Juab County, UT by Houweling’s Tomatoes which is bringing 280 new jobs to the state, along with cutting-edge sustainable farming and climate control technology.
Andrew Leech, president and CEO of Oemeta Inc., said they are looking forward to continue working with the Governor’s Office of Economic Development in their commitment to incorporating the value of more environmentally friendly industrial machining processes.
Utah Economic Development Corp President and CEO Jeff Edwards said Utah continues to attract high-tech companies from around the world thanks to low taxes, a skilled workforce and sound regulations.