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Vexxel Composites, LLC, a sister company to HyPerComp Engineering, has taken a major step toward its goal of positioning Utah as a leader in the rapidly expanding natural gas industry by investing $4 million in capital improvements toward the manufacture of compressed natural gas (CNG) tanks. The Governor’s Office of Economic Development (GOED) has supported their goal with an incentive to help Vexxel add 101 high paying jobs to the project.
“HyPerComp Engineering and Vexxel Composites have seized an opportunity to further their heritage of innovative composite manufacturing to fill critical needs in the nation’s accelerated natural gas industry,” said Gov. Gary R. Herbert. “The Utah workforce continues to prove it has the entrepreneurial skill and technical expertise to develop solutions for some of our most pressing questions.”
Vexxel Composites, LLC, is a manufacturing company focused on composite overwrapped pressure vessels. Vexxel manufactures CNG pressure vessels in numerous sizes to support the high growth in the use of CNG vehicles. Vexxel has developed strategic alliances with highly reputable companies to seize this opportunity. Vexxel will also manufacture pressure vessels for the US military and other commercial applications.
“We are excited for this opportunity for many reasons. Firstly, the US has an abundance of natural gas. Converting vehicles to CNG will reduce our dependence on foreign oil. Secondly, CNG is a clean burning fuel thereby reducing vehicular emissions. And thirdly, we will be bringing high paying manufacturing jobs to Brigham City,” said Vexxel CEO and President Wayne Clark.
To GOED, the incentive can benefit not only Utah’s composites and aerospace industry clusters, but also its energy and natural resources sector. In part because of the Beehive State’s abundance of natural resources and its long term responsible energy development strategy, Utah is poised to be an economic leader throughout the next generation.
“The expansion of Vexxel’s manufacturing capabilities build on the company’s already extensive military and civilian client base, and brings deserved attention to the economic vitality of Utah’s northern region,” said Spencer Eccles, executive director of GOED. “The talented workforce and renowned quality of life found in Brigham City and Box Elder County continue to capture the attention of world class firms, both homegrown and companies new to the state.”
“Vexxel is a great success story of experienced R&D professionals in northern Utah coming together to develop a very sophisticated technology,” said Jeff Edwards, president and CEO of Economic Development Corporation of Utah. “Vexxel’s expansion is a testament to the workforce and technology savvy environment in Utah that can create state of the art ideas and bring them to fruition thereby creating jobs.”
In addition to contributing $1,687,884 in new state revenue, the project expects to pay out $21,082,477 in new wages toward the 101 new full time jobs. The new positions will pay a minimum of 125 percent of the Box Elder County average salary, including benefits.
GOED’s Economic Development Tax Increment Financing (EDTIF) post-performance refundable tax credit will total $337,577, or 20 percent of new state revenues over the project’s 5-year lifetime.