Delaware

Dupont, Dow Agriculture Co. Site Selection – Delaware Gets HQ, Iowa and Indiana Get Global Business Centers

DuPont (NYSE:DD) and The Dow Chemical Company (NYSE:DOW) have announced U.S. site selection decisions for the Agriculture company following the planned separation of DowDuPont into three independent, publicly traded companies – Agriculture, Material Science, and Specialty Products.

Dow headquarters

Dow headquarters (press photo – dow.com)

Agriculture operations across DuPont and Dow totaled roughly $18 billion last year. The corporate headquarters for this merged Agriculture company will be located in Wilmington, DE and will include the office of the CEO and key corporate support functions.

The Specialty Products company will also be headquartered in Wilmington, DE, and the Material Science company will be headquartered in Midland, MI.

The companies also announced the selection of Johnston, IA and Indianapolis, IN as Global Business Centers for the Agriculture company, where they will consolidate leadership of business lines, business support functions, R&D, global supply chain, and sales and marketing capabilities.

Edward D. Breen, chairman and chief executive officer of DuPont, said in a release that “We want to thank the leaders of each state for a highly constructive, cooperative process to achieve the best possible approach that leverages key advantages in each location.”

Andrew N. Liveris, chairman and chief executive officer of Dow, added that “The headquarters location of the Agriculture company being announced as Wilmington, with global business centers in Indiana and Iowa is consistent with the intended headquarters of the Material Science company, to be named Dow, being headquartered in Midland, Michigan, but having global business centers in other U.S. and global locations.”

Delaware Governor Jack Markell said in a release that this announcement is a win for Delaware. “DuPont and Dow made this decision because they recognized that Delaware, with its top quality workforce, access to major cities, and proximity to key global markets, is the ideal location for the headquarters of the globalized, 21st century business that they intend to create,” said Gov. Markell.

Indiana Governor Mike Pence likewise said in a release issued by the Indiana Economic Development Corp (IEDC) that “I’m grateful for the confidence that Dow and DuPont have placed in our people and for the collaboration with city officials that made this exciting announcement possible.”

Indianapolis Mayor Joe Hogsett added that “I am grateful that the merger includes a continued, sustained presence in Indianapolis, and am optimistic about the further growth of DowDuPont in our community.”

State of Indiana and City of Indianapolis officials negotiated with the two companies’ leadership teams over the past several weeks, along with support from Indiana’s congressional delegation.

Tim Hassinger, president and CEO of Dow AgroSciences, noted that “We were impressed by the commitment put forth by the city and state and their focus on maintaining a hub of innovation in Indianapolis… We thank the local, state and federal officials for their efforts in working through this process.”

Delaware Considers Economic Development Incentives For JP Morgan Chase, NextFab and Frontier Scientific

The Council on Development Finance of the Delaware Economic Development Authority will later today conduct a public hearing related to three applications for state assistance.

J.P. Morgan Chase

Photo – epicharmus/flickr

One of these projects is the J.P. Morgan Chase & Co. expansion that was announced late last month. The firm announced plans to add 1,800 new Delaware jobs by 2019, while injecting hundreds of millions of dollars in economic activity through capital projects and supporting hundreds of construction jobs.

JP Morgan Chase is requesting $10.5 million in Delaware economic development incentives for this project. This includes a capital expenditure grant from the Delaware Strategic Fund in an amount up to $9,000,000. The firm will use the funds to upgrade and refurbish its existing facilities in Delaware, and for the expansion of its Delaware Technology Center in order to build the capacity to add an additional 1,800 jobs to its Delaware workforce.

JP Morgan Chase has additionally applied for a workforce development training grant from the Fund of up to $1,500,000 for various training initiatives for its existing and new workforce.

This project represents the largest single company job expansion in Delaware since Astra Zeneca moved its U.S. headquarters to Delaware in 1999. It also means that J.P. Morgan Chase would have nearly 10,000 employees in Delaware, making it the state’s second largest private employer.

Apart from the JP Morgan Chase project, the DEDO Council on Development Finance will also consider applications from two other companies.

One is a project by Frontier Scientific, Inc., which is requesting a performance grant from the Delaware Strategic Fund in an amount up to $363,012, along with a capital expenditure grant in an amount up to $106,080. Frontier Scientific will use the funds to offset equipment and renovation expenditures as well as working capital associated with the expansion of their current Delaware location in Newark, DE.

The third application is from NextFab Studio, LLC, which is requesting a grant from the Delaware Strategic Fund in an amount up to $350,000. The grant supports the establishment of a new makerspace (manufacturing incubator) project in the City of Wilmington, DE.

This funding will not only support the hiring of new Delaware employees by NextFab itself, but also the economic development resulting from the facility’s activity. NextFab’s mission is to foster innovation and economic development through providing broad-based awareness of, and access to, commerce enabled by next-generation digital design and fabrication technologies and services.

Delaware Incentives For J.P. Morgan Chase Expansion Will Benefit Entire Region

J.P. Morgan Chase & Co. has announced an expansion of its operations in Delaware that includes hundreds of millions of dollars in capital investments and the addition of 1,800 new jobs by 2019.

J.P. Morgan Chase

Photo – epicharmus/flickr

Supported by a package of Delaware economic development incentives, the 1,800 jobs that J.P. Morgan Chase plans to create represents the largest single company jobs expansion in Delaware since 1999, when Astra Zeneca moved its U.S. headquarters to the state.

The new jobs will also make J.P. Morgan Chase the state’s second largest private employer, with nearly 10,000 employees. It also means that the number of people employed by Delaware’s financial sector will be at its highest level in history. The sector is already growing at a fast 10 percent, having added 4,300 new jobs in the state over the last five years.

Governor Jack Markell and company leaders made the announcement at JPMC’s new Delaware Technology Center. In a release announcing the expansion, Gov. Markell said that “J.P. Morgan Chase has a distinguished history of financial leadership and innovation in this state and in this country, and we are proud that, with so many options, the company chose to invest for its future in Delaware.”

In order to secure the project and support J.P. Morgan Chase’s job creation plans, the Delaware Economic Development Office (DEDO) has put together an attractive package of incentives for the company. This includes a three percent of the firm’s capital expenses, up to $3 million annually for three years.

JPMC will additionally get up to $500,000 annually for three years to support workforce training. The Delaware Transit Corporation is also committing $1 million annually for three years. This funding will support enhanced regional transportation options, including more frequent train service between Wilmington and Philadelphia. This will benefit not just JPMC, but employers throughout the region.

Bill Wallace, J.P. Morgan Chase Chief Administrative Officer for Delaware, said in the release that they never could have accomplished this without the support and positive climate that the state, federal, and local officials consistently provide to the industry and, more importantly, to their employees and their families.

“This is especially true when it comes to Delaware’s Economic Development Office, which continues to show forward and positive thinking,” added Wallace.

DEDO Director Bernice Whaley noted that the jobs that J.P. Morgan Chase is announcing are exactly the kind of growth that they want to see in Delaware. “Today’s expansion means not only 1,800 good jobs at JP Morgan Chase, but thousands of jobs at small businesses throughout New Castle County and Delaware that will benefit from the construction and economic expansion that continues today,” added Whaley.

Delaware Approves Economic Development Incentives for Croda Expansion

Following a public hearing, the Delaware Council on Development Finance has approved economic development incentives for an expansion project in New Castle, DE by specialty chemical manufacturer Croda.

Croda

Croda (photo – croda.com)

Last month, the company held a ground-breaking for the new project at its Atlas Point operation. Croda is investing $170 million to establish what will be the first North American plant to produce 100 percent sustainable non-ionic surfactants.

These are active emulsifying agents that help keep oil and water together, and are commonly used in a wide range of consumer and industrial products. Croda will produce non-ionic surfactants from bio-ethanol, which further reduces its use of fossil fuels and gives customers a sustainable choice that performs as well as existing non-sustainable options.

Croda International Plc Group Chief Executive Steve Foots said in a release that this investment represents a tidal shift, especially for consumer goods manufacturers who are striving for sustainability and performance.

Foots added that at Croda, sustainability is fundamental to who they are and what they do, and they’re proud to be launching this first-of-its-kind initiative in North America.

Croda recently invested $2.3 million at this site for a solar panel array and another $8 million for a renewable energy project that converts landfill gas into electricity and steam. As a result, the Atlas Point facility reduced annual CO2 emissions by 11,600 tons, and over 60 percent of the site’s energy usage is now sourced from these projects.

This latest expansion to produce 100 percent sustainable surfactants from bio-ethanol further adds to the sustainability achievements of Croda’s Atlas Point facility.

Apart from the sustainability benefits, it is also creating 30 new jobs and helping retain 47 jobs at the Atlas Point facility, which already has 200 employees. The project will also create more than 250 construction jobs that while the production facility is being built.

Delaware is supporting the company’s investment and job creation and retention plans by offering Croda, Inc. a total of $2,487,384.46 in Delaware Strategic Fund grants. This includes a capital expenditure grant of up to $1.5 million, another $699,556 as a job creation performance grant, and $287,828.46 as a job retention grant.

Delaware Economic Development Office Director Alan Levin said in the release that Croda continues to make major investments at their Atlas Point facility in Delaware, and added that this renewable energy process will add new jobs while at the same time improving the safety of the environment.

Edison, NJ-based Croda, Inc. is the North American headquarters for Croda. The headquarters of Croda International Plc is located in East Yorkshire, U.K. Croda Atlas Point is one of their 54 operations, including 18 manufacturing sites, that are located across 34 countries. All told, the company employs more than 3,500 employees at these facilities around the world.

Delaware Economic Development Office Gets New Director

Governor Jack Markell announced that he is naming Bernice Whaley as director of the Delaware Economic Development Office, subject to confirmation by the Delaware State Senate.

New DEDO Director Bernice Whaley

New DEDO Director Bernice Whaley (photo – delaware.gov)

Whaley, who is currently DEDO Deputy Director, is being promoted to take over the post from outgoing Director Alan Levin.

Bernice Whaley brings an ideal mix of business development and logistics executive experience to the post as a result of managing DEDO preceded by her own extensive private sector business experience.

Whaley joined Happy Harry’s Inc. in July 1982 in an entry level job managing inventory when the company had just 13 stores and around 100 employees. In 2000, she was appointed to the post of vice president of Distribution and Inventory Management. By the time she left after 24 years and nine months, Happy Harry’s had turned into a regional giant with 76 stores and 2,800 employees that was acquired by Walgreens.

After that, Whaley briefly worked as a management consultant for Karabus Management from April 2007 to June 2008, after which she started Levin Stellini & Associates for less than a year from June 2008 to February 2009.

Whaley was asked to join the Delaware Economic Development Office as deputy director in Feb 2009, and has been managing the Office for more than six years. As deputy director, she has been managing DEDO’s day-to-day activities, leading business development and attraction projects, and working with site advisors.

Whaley also led the development of Delaware’s Comprehensive Economic Development Strategy (CEDS).

Bernice Whaley graduated with a Bachelor of Science in Business Administration/Marketing Management from the University of Delaware. She has been awarded a Master of Science in Organizational Leadership from Wilmington University, and is working on getting a doctorate in business administration.

It’s even more impressive when you consider that she was raised by a single mother who passed away when Bernice was a teenager. Whaley subsequently attended the University of Delaware while working full-time.

Governor Markell said in a release naming her for the post of DEDO Director that Bernice is a remarkable person who has overcome significant personal challenges and adversity to succeed in business and in the public sector.

Whaley and Alan Levin took over the reins at DEDO at the height of the Great Recession in 2009, when tens of thousands of Delawareans were losing their jobs. Their focus on putting people back to work led to projects such as the re-opening the shuttered oil refinery in Delaware City, and attracting new projects to the site of the old Chrysler plant in Newark, DE.

They brought home a string of large corporate relocations and expansions to Delaware, including projects by Amazon, Barclays, Citigroup, JP Morgan Chase, Kraft Foods, Sallie Mae, etc. Today, Delaware’s unemployment rate has fallen to 4.6 percent, the lowest in the region. Average annual wages have increased more than nine percent since 2009. Job growth, at 4.4 percent, is higher than the national average.

Levin said in a release that it has been challenging from the start, but he is pleased to say that Delaware is in a much better place than when they started. Levin added that the outlook for the state’s citizens in the years to come is much brighter because of the hard work of the staff at DEDO.

Levin is leaving his post to join SoDel Concepts, a restaurant and hospitality group in Sussex County, DE.

Whaley said in the release that it’s an honor to be nominated by Governor Markell, and added that if confirmed, she wants to build on DEDO’s successes and focus on enhancing the support they offer to small businesses.

Wells Fargo Seeks Delaware Economic Development Incentives For New Castle Expansion

At its next meeting, the Delaware Economic Development Authority’s Council on Development Finance will hold a public hearing on applications by business expansion and relocation projects seeking financial assistance.

Wells Fargo

Wells Fargo HQ (photo – Laimerpramer/wikipedia)

The projects seeking assistance include Advanced Materials Technology, Inc.; Wells Fargo Bank; and Zacros America, Inc.

Wells Fargo Bank is planning to relocate 80 employees from out of state to New Castle County, DE and then create another 100 jobs, adding up to a total of 180 new jobs for Delaware.

The bank is requesting a Delaware Strategic Fund performance grant of up to $1,325,025 to offset costs associated with relocating and creating new employment opportunities, along with a capital expenditure grant of up to $60,000.

San Francisco, CA-based Wells Fargo & Company (NYSE: WFC) is a diversified financial services company with $1.7 trillion in assets. The company does business through more than 8,700 locations and 12,500 ATMs, and their website and mobile banking. They also have offices in 36 countries supporting customers conducting global businesses.

For the previous quarter, Wells Fargo declared revenue of $21.3 billion and a net income of $5.8 billion. Wells Fargo has approximately 266,000 team members serving one in three households in the United States.

Advanced Materials Technology (AMT) is a Wilmington, DE-based product development and manufacturing company that researches and designs enabling materials for scientists working in the field of separation science.

AMT has applied for a federal Phase II SBIR grant. In the meantime, they have applied for a $50,000 Delaware Strategic Fund grant under the Delaware Technical Innovation Program. The state funding will help them retain employees and continue research while the federal grant process is underway.

Schaumburg, IL-based Zacros America, Inc., a subsidiary of Japan-based Fujimori Kogyo Co., Ltd., provides functional films and packaging. The company is considering relocating its operations in Baltimore, MD to Newark, DE.

Zacros is seeking a Delaware Strategic Fund performance grant of up to $703,505 to help offset the costs associated with relocating, along with a Strategic Fund capital expenditure grant of up to $180,000.

The Delaware Strategic Fund provides a customized package of economic development incentives for companies considering locating or expanding in the state. In one of his weekly messages last month, Governor Markell highlighted the fact that Delaware Strategic Fund grant recipients have exceeded their job creation requirements.

The Governor noted that the portfolio of companies currently receiving grants reported more than 26,000 full-time employment opportunities, which is 3,000 more than they committed to in total while applying for the grants.

Delaware Launches International Economic Development Website and Export Plan

Delaware is launching a new export initiative and a new website for international economic development that will support export efforts and promote foreign direct investment in Delaware.

Global Delaware

Global Delaware (photo – global.delaware.gov)

Governor Jack Markell announced details about the export initiative and website during a keynote address at the Delaware State Chamber of Commerce Spring Legislative Brunch and Manufacturing Conference.

The initiative, named the Strategic Export Plan for the State, is based on a study conducted by the DE Division of Corporate and International Development (DCID) to determine global locations where Delaware companies can have the most success overseas.

The study identified Canada, Mexico, Germany and South Korea as the key countries with the most buying potential for the products and services that Delaware has to offer. The State has planned trade missions to each of these countries over the next 18 months to give Delaware businesses a chance to see the market. Participants will gain access to foreign buyers and distributors, including through one-on-one matchmaking business meetings.

As part of the initiative, the State is providing a comprehensive suite of services including export counseling, market studies, and financial assistance through grants for eligible export expenses.

During the keynote address, Gov. Markell also unveiled the Global Delaware economic development website, an online platform for promoting Delaware as a business destination in international markets.

The website is organized into three DCID focus areas – invest, expand and incorporate. The invest section pitches Delaware as an ideal location for foreign companies looking to invest and establish new facilities in the United States.

The expand section provides Delaware businesses with information, links and resources to get started with export activities. The incorporate section takes you straight to the State of Delaware’s corporate law website.

In a release announcing the launch of the Global Delaware online platform, Gov. Markell said that companies involved in global trade are 20 percent more efficient, and do 25 percent more business than those who don’t.

“We should do all we can to ensure that Delaware companies get their fair share – or more – of the business opportunities available to them around the world,” said Gov. Markell.

The Global Delaware website also highlights success stories that show how local companies such as Acorn Energy, ANP Technologies, and Elcriton are benefitting from exports and working with the State.

Elcriton, for example, is a Delaware biotech start-up which engineers microorganisms for applications ranging from biofuels production to consumption of waste gas emissions. The renewable chemicals company is getting work from leading chemical companies from all over the world looking for designer microbes.

The startup was founded by Terry Papoutsakis, a chemical engineering professor at the University of Delaware and his grad student Bryan Tracy, who is now CEO of Elcriton. Their profile on the Global Delaware website explains all the ways in which being in Delaware helped the startup tap chemical industry resources and navigate the commercial aspects of the business.

Read more at global.delaware.gov.

Delaware Announces First Three Downtown Development Districts Under DDD Grant Program

Governor Jack Markell announced the selection of Seaford, Dover and Wilmington for designation as Downtown Development Districts under the DDD Grant program.

Delaware DDD Grant program

Delaware DDD Grant program (photo – delaware.gov)

The Downtown Development Districts Act of 2014 signed into law by Gov. Markell allows Delaware communities to seek the DDD designation for a part of their city, town or unincorporated area with the aim of revitalizing downtowns and surrounding communities.

Designated DDDs will be eligible to receive significantly enhanced funding and support from Delaware economic development programs.

Specifically, the Delaware State Housing Authority (DSHA) is authorized to offer grants of up to 20 percent of the cost of certain types of qualified construction projects in designated areas. Not to mention funding for purchasing and rehabilitating abandoned or vacant properties. Other state agencies will also provide incentives for projects within these districts.

Delaware’s DDD Grant program is modeled after a similar program in Virginia that has successfully managed to attract significant amounts of private investments to underserved areas.

The Delaware law required the first round of designations of up to three DDDs to include one in each of the state’s three counties. Seaford, Dover and Wilmington were selected out of nine localities that applied for the designation.

The selection of these communities was based on criteria including the need and impact of the DDD designation, local incentives offered, and the quality of the district plan submitted by the applicants.

In a statement announcing the first round of DDD designations, Gov. Markell said that the Downtown Development District program has generated a high level of enthusiasm and interest, and added that he was impressed by the overall quality of the applications submitted.

Gov. Markell said that in addition to demonstrating significant need, each of the winning applicants had submitted thoughtful plans with detailed strategies for strengthening neighborhoods, spurring private investment, and improving housing opportunities for residents of all walks of life.

Separate events are being held in each of the three designated districts to celebrate their designation and allow local officials to unveil their plans.

Future rounds may include up to 15 such designations in each round. The DDD Grant program was funded last year with $7 million by the Delaware General Assembly. It is being administered by the DSHA, which is set to start accepting grant applications for projects from the three designated communities next week.

Find out more about the Delaware Downtown Development Districts Program at Delaware.gov.

Delaware Governor Signs Legislation Boosting Small Business R&D Tax Credits

Delaware Governor Jack Markell signed into law new legislation that will double the research and development tax credit the state offers to startups and small businesses.

Delaware Governor Jack Markell at HB 318 bill signing

Delaware Governor Jack Markell at HB 318 bill signing (photo – delaware.gov)

The Governor signed House Bill 318 at the Delaware BioScience Association’s headquarters in the Delaware Technology Park.

The bill was passed with overwhelming bipartisan support last month by the Delaware Senate and House of Representatives.

As per the new law, businesses with less than $20 million in average annual gross receipts for the most recent four years are eligible for a state R&D tax credit equal to 100 percent of the corresponding federal credit.

Before HB 318 became law, all businesses in the state were entitled to a state R&D tax credit of up to 50 percent of the federal credit. Larger companies will continue to be able to claim up to half of the federal credit.

The amendment is meant to boost Delaware economic development by attracting companies from out of state and by increasing the opportunities for entrepreneurs in the state to innovate and grow.

Gov. Markell said that state R&D tax credits have been proven to encourage research, attract out-of-state companies, and boost the high-tech sector.

Even so, only about two percent of these credits go to startups and small businesses. The Governor said this needs to change, and that’s what this law is about.

“By encouraging research and development at all of our companies, we will incentivize innovation and growth in emerging industries that are vital to our economic future,” said Gov. Markell.

The enhanced amount in tax credits available to each small business won’t reduce state revenues, because the total funding for the R&D tax credit program is still capped at $5 million. The law merely ensures a more equitable distribution, with small businesses and startups getting a larger share of this amount.

State Representative Bryon Short, who sponsored the bill in the House, said the passage and signing of the bill is another step in establishing Delaware as the best state to start and grow a business.

Rep. Short added that Delaware is increasing the opportunity for job growth and enhancing its competitiveness with other states by modernizing the state R&D tax credit to better support the growth of small businesses.

Delaware Governor Signs Economic Development Bill to Revitalize Downtowns

Joined by state and local officials and community leaders, Delaware Governor Jack Markell signed an economic development bill that will promote revitalization of Delaware’s downtowns.

DE Gov. Jack Markell bill signing - SB 191 offering economic development incentives for downtown revitalization

DE Gov. Jack Markell bill signing – SB 191 offering economic development incentives for downtown revitalization (photo – delaware.gov)

The bill (SB 191) allows communities to apply for a part of their city, town or unincorporated area to be designated as a Downtown Development District.

Projects in a DDD will be eligible for significant Delaware economic development incentives and other state benefits.

Investors in designated Districts are entitled for grants of up to 20 percent of their construction costs. These grants, administered by the Delaware State Housing Authority (DSHA), are available for residential, commercial and mixed-use projects undertaken by for-profit builders and investors, non-profits, homeowners and private businesses.

State agencies will additionally provide incentives for activities undertaken in a DDD. For instance, DSHA will provide additional funding for acquiring and rehabilitating vacant and abandoned houses. A percentage of Historic Preservation Tax Credits offered by the State will be allocated for DDD projects.

The idea was proposed in the Governor’s State of the State address in January, and introduced as proposed legislation on April 3, 2014. The bill quickly moved through the Legislature, ending up being approved unanimously by the Senate on May 7 and the House on May 15.

“It is my hope that this innovative new program to revitalize our downtowns will bring much-needed energy and resources to areas of our state that have been overlooked for too long,” said Gov. Markell.

The Governor plans to designate up to three Districts (one in each of Delaware’s three counties) out of the first round of applications. In future rounds after that, up to 15 Districts may be designated at one time.

DDD applicants will be evaluated based on their need and impact of the designation, the local incentives they offer, and the quality of the development plan submitted.

State Senator Margaret Rose Henry, the bill’s lead sponsor, said that strong downtowns have the potential to be tremendous catalysts for developing stronger cities across-the-board, but in order to do that, downtowns have to overcome the challenges of aging buildings and infrastructure.

Sen. Henry said this new law will help marshal the kind of resources needed for meeting these challenges and will make encourage the private sector investment and support needed to make this succeed.

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