Utah’s business landscape is rich with professionals who have le...Read More
Social Media and Employers: Friends or Enemies?
The Case for HSAs
Time to Show Up
Make a Move
In the Lab
Rent to Own
Back from the Dead
A Breath of Fresh Air
Travel & Tourism
Salt Lake City — Pactiv, LLC plans to establish a new manufacturing and distribution facility in Salt Lake County. The company has signed a tax incentive agreement with the Governor's Office of Economic Development (GOED).
Pactiv expects to make a capital investment of approximately $52 million to support the expansion project. Property improvements and personal property equipment for manufacturing and warehouse activities will make up the bulk of this investment. This expansion will also lead to an estimated $28.8 million in new state wages and an estimated $5.8 million in new state taxes over the 10-year life of the agreement.
“The expansion project is highly competitive with other states and we are pleased to select Utah,” said Pactiv President and CEO, John McGrath. The project is expected to bring 60 new jobs to Utah, which are expected to pay 125 percent of the Salt Lake County wage and include benefits. Pactiv is privately held and employs more than 11,000 people around the world. It is headquartered out of Lake Forest, Ill.
Pactiv manufacturers and distributes food packaging and food service products. It supplies major foodservice retailers, food processors, food packers, supermarkets and restaurants retailers with plastic, paper and aluminum food packaging products.
As part of a contract with Pactiv, the GOED Board of Directors has approved a maximum cap tax credit of $871,010 in the form of a post-performance Economic Development Tax Increment Finance (EDTIF) incentive, which is 15 percent of the net taxes Pactiv will pay over the 10-year life of the agreement. Each year as Pactiv meets the criteria in its contract with the state, it will earn a portion of the tax credit incentive.